Are you concerned about giving or receiving a counteroffer when buying or selling your home? If you’re a first-time home buyer or seller, counteroffering or negotiating can feel intimidating. You may wonder about the proper etiquette of countering after receiving an offer, how to make a respectful counteroffer and negotiate wisely, and when to walk away.
Real estate counteroffer etiquette can help you understand the norms and make informed decisions. A realtor will also be your best ally in counteroffer situations. A top realtor has negotiated hundreds of deals and understands the intricacies of counteroffers from both the buyer’s and seller’s perspectives.
If you need help crafting the perfect counteroffer and don’t have an agent yet, Clever connects you with top-rated agents who know how to negotiate — and who can also save you thousands with just 1.5% listing commission. Take a short quiz to get started!
What is a counteroffer in real estate?
A counteroffer is when the other party—either the buyer or seller—responds to your offer with different terms rather than accepting it without any changes. Counteroffers turn the tables because the party receiving the counteroffer has three options:
- Accept it
- Issue another counterproposal
- Reject it and end negotiations
It’s possible that negotiations could go on for weeks or even months. There’s no limit on the number of counteroffers that can be submitted.
A binding contract can’t be created until both parties agree to the offer. Finalizing counteroffer negotiations requires both the buyer and seller to accept the terms without any additional conditions or modifications.
What is real estate counteroffer etiquette?
Real estate counteroffer etiquette boils down to being quick, clear, and professional in your response. Ideally, you’ll respond within 24 hours or less to keep the deal from slipping away and show your interest in moving things forward.
In our litigious society, responding in writing is a must, and you can do it with a simple letter in plain English. Just don’t let your emotions get in the way of writing a counteroffer that’s polite and sticks with addressing points you’d like changed.
For example, is the price not meeting your expectations? Or do you think there should be more contingencies? Focus on those adjustments in your letter.
Be sure to include an expiration date for your counteroffer. If you don’t like what the other party responds with, consider whether what they’re asking for is a deal-breaker or if there’s still negotiation room for you. You can always walk away if the terms don’t align with your goals.
🧠 Counteroffer Etiquette Checklist
☑️ Respond promptly (ideally within 24 hours).
☑️ Submit changes in writing only (no verbal agreements).
☑️ Be professional and courteous — this is a business transaction, so don’t take things personally.
☑️ Only counter what’s essential; don’t nitpick.
☑️ Always set an expiration date on your counter.
☑️ Stay grounded; know your bottom line and when to walk away.
☑️ Use your real estate agent to communicate professionally and negotiate smartly.
Counteroffer letters don’t have to be long or complicated. You just need to make sure to include key pieces of information. Whether you’re a buyer or a seller, here’s a template you can use.
[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
Date: [MM/DD/YYYY]
To: [Buyer/Seller's Name]
Re: Counteroffer – [Property Address]
Dear [Buyer/Seller's Name],
Thank you for your offer dated [Original Offer Date]. After reviewing the terms, I am submitting a counteroffer with the following adjustments:
- Purchase Price: [New Offer Price]
- Closing Date: [Proposed Closing Date]
- Contingencies: [Include/Remove Specific Contingencies]
- Additional Terms: [Any Other Specifics, such as earnest money or personal property included]
This counteroffer is valid until [Expiration Date and Time]. Please review and respond by that deadline.
Sincerely,
[Your Signature]
[Your Name]
Counteroffer etiquette: Real-world examples
Here are some real estate counteroffer examples that might play out when buying or selling a home.
Seller counteroffer example
A seller lists their home for $400,000. A buyer submits an offer of $360,000, which is 10% less than the asking price. While the offer is aggressive and lower than what the seller was expecting, the seller courteously counters with $390,000 and agrees to pay part of the closing costs. The buyer agrees, and moves forward.
Etiquette Highlight: The seller stayed polite and found common ground.
Buyer counteroffer example
A house is listed at $200,000. A buyer offers $180,000 with a 60-day close and home inspection and financing contingencies.
The seller provides a counteroffer of $190,000 with a 45-day close and a deadline of two days to accept the counteroffer. The buyer agrees with the seller’s new conditions and accepts the offer within the requested timeframe. Then, the sale moves forward.
Etiquette Highlight: The buyer responded quickly, honored the seller’s timeline, and showed flexibility.
Why would you need to counteroffer?
Sellers and buyers send out counteroffers for various reasons, such as to increase or decrease the sale price or adjust the closing date. Other reasons include:
- Boost the earnest money deposit
- Modify the contingency time frame
- Exclude or add personal property to the contract
- Pay for more of the closing costs
- Increase the sale price
- Mitigate risks, such as asking for an extended home inspection period or proof of financing
The art of negotiation is tricky, which is why it's often best left to the experts. Experienced real estate agents are expert negotiators, ensuring you receive the best possible price without jeopardizing your sale.
How likely are buyers to receive a counteroffer?
The likelihood of a buyer receiving a counter depends on several factors, including:
- Whether the market where you want to purchase is a buyer's market or a seller's market.
- How long the home has been on the market.
- Whether your offer comes close to the seller’s expectations.
When countering, each offer should present a price closer to what the other party wants, or include concessions to compensate for desired sale price differences. Each party will use their realtor for advice at every stage to determine the proper next step.
How long do you have to make a counteroffer?
Real estate counteroffer etiquette suggests you should accept a counteroffer as soon as possible. You should be prepared to move quickly, as counteroffers expire just like purchase offers.
As you review the offer, remember that there are several factors besides the offer price that can be negotiated, such as contingencies, closing cost splits, or an extended (or shortened) timeline.
When making a counteroffer, never let emotions affect negotiations, even if you're the buyer and this is your dream home. Now is the time to be bold. Ask questions, conduct thorough research, and take the time to review the new offer carefully.
It’s not just the counter offer...
Post-inspection updates and repairs. Closing costs. The counter offer is just the kickoff for a long series of negotiations, where you’ll need to know when to stand firm or walk away.
The good news: You’re not the one who has to negotiate.
Unless you have a good bit of experience in selling homes, this is where your real estate agent earns their keep. Just make sure your agent is a full-service agent who will be by your side through closing.
And like we said, EVERYTHING is a negotiation.
At Clever, we offer a free service that negotiates with real estate agents, so you get full service locked in at a lower rate. We’ll bring you top-rated local agents. And since we can bring them more business, they agree to lower your fee.
- Sellers save an average $7,000 in fees
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When should you accept a counteroffer?
You should accept a counteroffer if you feel comfortable with the offer terms that are most important to you. Typically, this includes the sale price, contingencies, and closing date.
You may also want to accept a less desirable offer if you don’t want to lose the sale. As a seller, this may be because the home has been on the market for a while, and you’re unsure when the next offer will come in. If you’re a buyer, you might have your heart set on moving into that neighborhood because of the schools, or you may need to move quickly because your home has already sold.
In both cases, you might make more concessions than you otherwise would have.
FAQs about counteroffer etiquette
A lowball offer is an offer that’s significantly below the market value. As the seller, it’s important to handle a lowball offer with grace. The key is not to take it personally or get insulted. The buyer may have missed important features in your home or not realized your home is priced within the market range.
Work with your realtor to send out a polite and strategic counteroffer if you think you can make it work. If not, you don’t need to respond. Trust your agent and determine the best way forward.
If you aren’t in agreement with the counteroffer you received and would like to negotiate further, simply send another counteroffer with the adjusted terms.
While there’s no legal limit to the number of counteroffers you can give, real estate counteroffer etiquette generally suggests that three or more rounds of counteroffers can start to become problematic.
Buyers and sellers may start to get frustrated after feeling like the other side isn’t truly open to negotiation. It can also signal that what the buyer and seller want aren’t that close and that they might be trying to force a deal that isn’t a good fit.
Yes, always respond in writing. It keeps the negotiation organized, prevents misunderstandings, and protects you legally in the event of a dispute. Real estate agents and brokers almost always insist on having everything in writing to protect both parties. They probably wouldn’t agree to verbal counteroffers.
If you wish to withdraw an offer, do it as soon as possible. Once the other party signs, the offer can’t be withdrawn, and the deal generally becomes binding.
If you can still withdraw your offer, send a courteous and straightforward notice stating that you’re revoking the counteroffer. Your real estate agent should handle sending the withdrawal notice on your behalf.
Counteroffers also typically have an expiration date after which they become null and void; a new offer would then need to be presented.