Are you nervous about giving or receiving a counteroffer when buying or selling a home? If you’re a first-time home buyer or seller, the back-and-forth of offers and counteroffers can feel intimidating. You may worry about the “right” way to respond, how to stay respectful while protecting your interests, and when it’s better to walk away.
Real estate counteroffer etiquette is about being prompt, clear, and professional in how you negotiate. Counteroffers can change the purchase price, closing date, and contingencies (like inspection or financing) — and the way you handle those changes can make or break the deal.
A good real estate agent is your best ally during this process. A top agent has negotiated hundreds of deals, understands the norms in your local market, and can help you decide when to push, when to compromise, and when to move on. Take a short quiz to get started!
What is a counteroffer in real estate?
AA counteroffer is a written response to an offer that changes one or more of its terms instead of accepting it as-is. Either the buyer or the seller can make a counteroffer.
When a counteroffer is made, the person receiving it has three options:
- Accept it
- Reject it and end negotiations
- Issue another counteroffer
Each new counteroffer replaces the previous offer — once you counter, you generally can’t go back and accept the old terms later. A binding contract isn’t created until both parties agree to the same terms in writing and sign.
In practice, counteroffers often involve:
- Adjusting the sale price
- Changing the closing date or possession date
- Adding or removing contingencies
- Changing how much of the closing costs each side pays
This back-and-forth can last a few rounds or, in slower markets, even longer. There’s no legal limit to the number of counteroffers — but etiquette suggests you shouldn’t string the other party along if your goals are far apart.
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.
Why a pro negotiator matters
The counteroffer is rarely the last negotiation you’ll encounter. You may also need to navigate:
- Post-inspection repair requests
- Appraisal issues
- Closing cost credits and timing changes
Unless you’ve bought or sold multiple properties, it’s hard to know when to stand firm, when to compromise, and how to keep emotions from derailing a good deal.
That’s where a full-service real estate agent earns their commission. A great agent understands local norms, knows how to frame your counteroffers so they land well, and handles communication so you don’t have to have tough conversations directly.
At Clever, we negotiate with top agents on your behalf so you get full service at a lower rate. Our partner agents agree to list for just 1.5% — and sellers save an average of $7,000 in fees while still getting expert negotiation support.
Take a short quiz to see local agents and compare your options. There’s no obligation, and Clever’s service is 100% free for buyers and sellers.
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?
Legally, how long you have to respond depends on the deadline stated in the offer or counteroffer form. Once that expiration time passes, the offer usually becomes void unless the other party agrees to revive it.
From an etiquette standpoint, you shouldn’t wait until the last minute. Responding as soon as you reasonably can — often within 24 hours — shows you’re serious and respectful of the other side’s time. Waiting days to reply can kill momentum and push motivated buyers or sellers to look elsewhere.
As you review a counteroffer, remember you’re not just weighing the price. You can negotiate:
- Contingencies (inspection, appraisal, financing, home sale)
- closing cost splits
- closing and move-out dates
- personal property to include or exclude
Try to evaluate the counteroffer calmly instead of reacting emotionally, even if this is your dream home or a property you’ve owned for years. Ask questions, get your agent’s input, and compare the offer against your bottom line. Then respond clearly, in writing, before the deadline with either an acceptance, a new counter, or a polite decline.
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.
FAQ
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 don’t agree with a counteroffer, you have two options:
-
Reject it outright. Have your agent send a brief, polite written notice that you’re declining the counteroffer and won’t be moving forward. This cleanly ends negotiations.
-
Send a new counteroffer. If you’re still interested but want different terms, you can respond with a new counter that adjusts price, dates, or contingencies.
Good etiquette is to respond promptly either way so the other party isn’t left wondering. If the gap between you is large and you don’t see a path to agreement, it’s usually better to decline clearly rather than go through multiple rounds of counteroffers that frustrate everyone.
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.