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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE:

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MoMo Productions/Getty Images July 22, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. This article was generated using automation technology and thoroughly edited and fact-checked by an editor on our editorial staff. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo

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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. A counter-offer is a form of negotiation during a real estate transaction. The counter-offer comes in response to an earlier offer to . Typically, the seller responds to a prospective buyer’s bid on the home with a higher price and/or different terms. The buyer is free to accept, reject or make another counter-offer. For example, a buyer might make an offer that is less than the listing price — say, $400,000 on a home whose asking price is $420,000. The seller, rather than accepting or outright rejecting the offer, can make a counter-offer at a slightly higher price — say, $410,000. It’s a bit like bargaining, or a conditional yes: The seller is essentially saying, “OK, I’ll sell you my house, but I want more money.” The buyer can agree to the new terms, walk away or make another counter-offer — say, meeting in the middle at $405,000. As a buyer, whether or not you accept a counter-offer depends on your needs and desires. Before you accept, run the numbers: A higher purchase price will mean higher mortgage payments, closing costs and potentially even higher real estate taxes. You don’t want to become . Assessing your priorities, and your budget, is the best way to determine whether the newly proposed conditions are acceptable for you.

Counter-offer pros and cons for sellers

The biggest pro of making a counter-offer, of course, is potentially for more money. That said, there are negatives as well. One is that you may end up wasting time with negotiations that don’t go anywhere. Some buyers will simply make no response to your counter-offer. (This is more common in slow markets, not the we’re in today.) In addition, if you spend too much time on negotiations and lengthy counter-offers with one potential buyer, you may also lose out on interest from other buyers. It’s usually a good idea to stipulate a deadline, so that the process can’t drag out too long. Finally, once a buyer has accepted a counter-offer, the seller generally can’t rescind it if a better offer comes along. The acceptance should be conditioned on a contract being entered into within a set number of days.

Counter-offer pros and cons for buyers

Homebuyers are generally on the receiving end of counter-offers: You and the seller either accepts, rejects or counters. The major benefit of a counter-offer for buyers is the potential to secure the home for less money and on better terms, always a good thing. However, if you really want the house, it’s not a great idea to go back and forth too many times with counter-offers. Sellers can quickly tire of this — and the more time the process takes, the more time you leave open for a better offer to come along. Plus, it may leave the seller with the sense that you are difficult to deal with, assuming that there will be more trouble down the road that they’d just as soon forgo. If you’ve reached your spending limit, indicate that your counter-offer is your “last and best” offer, with a time limit for acceptance. This makes your position very clear to the seller.

What s a real estate agent s role in the counter-offer

The , whether representing the seller or the buyer, is to look out for their client’s best interests and help them navigate the process. Agents often advise in the decision of both parties whether to accept, counter or reject. If a seller has received multiple offers, for example, the may advise extending the deadline by several days or more to see if additional interest or a materializes. An agent can also play a key role in keeping down any negative feelings that may result from this bargaining process. No party wants to go to with ill will.

How to handle offers when selling your home

If a seller receives an offer that they believe is too low, or otherwise not up to their expectations, there are three ways to respond: Reject. If you’re unhappy with the offer and not interested in making a deal, you can reject the offer outright. (Just do it nicely — people talk.) At this point the buyer may or may or may not come back with an improved offer. Accept with a contingency. If you want to accept the offer but you have specific concerns, you can accept with certain conditions, or contingencies, in place. can be based around the title, financing, closing date and more. Make sure the language in a contingency is crystal-clear, so there can be no misunderstandings. Make a counter-offer. If you’d like to accept the offer but want a few more details — or a few more bucks — thrown in, you can propose a counter-offer. This can include a higher price or other terms, such as closing date or move-out timeline. Be sure to consult carefully with your agent before deciding on a counter-offer, to make sure it’s reasonable and won’t drive the buyer away.

Tips for buyers making a counter-offer

When making a counter-offer as a buyer, it’s smart to know your limits. While you may want to be flexible, you should maintain a firm position on the top amount you’re willing to pay. That will help you stay out of bidding wars with other buyers. Before you respond to a seller’s counter-offer, re-check the to make sure that the seller’s valuation of it is reasonable. If the seller’s significantly exceeds their home’s , you have more negotiating power to ask for a lower price. But be quick about it — counter-offers often come with a strict deadline. And always keep in mind that if you overpay, the appraisal of the home may come in lower than what you paid. This is a problem for , and as such, you may not qualify as big of a loan as you need without putting down more cash. SHARE: This article was generated using automation technology and thoroughly edited and fact-checked by an editor on our editorial staff. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry.

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