What is Counteroffer?
A counteroffer is a response to an offer that changes one or more terms — such as price, closing date, or contingencies — and sends it back for consideration. Making a counteroffer rejects the original offer and replaces it with new terms. The back-and-forth continues until both sides accept the same terms or one walks away.
Example: A seller receives a $590,000 offer and counters at $610,000 with a faster close; the buyer can accept, counter again, or decline.