Navigating a counteroffer is a critical moment in selling your home. Learn how to evaluate offers, negotiate strategically, and decide when to accept, counter, or walk away for the best outcome. The moment an offer arrives on your home is a surge of validation. But when that first offer isn’t quite what you hoped for, the real test begins. This is where the counteroffer becomes your most powerful tool. It is not a simple rejection; it is the start of a nuanced conversation, a strategic dance that moves both buyer and seller closer to a mutually acceptable agreement. Understanding how to use this tool effectively can mean the difference between a deal that falls apart and one that secures your financial and personal goals.

A counteroffer is, in legal terms, a rejection of the original offer and the creation of a new one. When you receive an offer that has the right intent but the wrong terms, you have the right to respond with a counteroffer that adjusts those terms. This could mean raising the purchase price, changing the closing date, or adjusting which items are included in the sale. The key is to approach this not as a confrontation, but as a collaborative problem-solving session. The buyer has signaled they want your home; your counteroffer signals you are willing to work with them to make it happen, just on slightly different terms. This process keeps the conversation alive and the buyer engaged, preserving the momentum of the sale.

Before you draft a counter, you must move beyond the emotional reaction to the number and conduct a clear-eyed evaluation. Look at the entire offer, not just the price. A slightly lower offer from a well-qualified, cash buyer with a flexible closing date may be far more valuable than a higher offer from a buyer with a risky financing contingency and a need to sell their own home first. Consider the local market conditions. In a buyer’s market, you may have less room to negotiate. In a seller’s market with multiple interested parties, you can confidently counter closer to your asking price. Your real estate agent’s expertise is invaluable here, providing context on what is reasonable and what risks you might be taking by countering too high or too low

The art of the counteroffer lies in its precision and prioritization. You and your agent should identify your “must-haves” versus your “nice-to-haves.” If the price is close but the closing timeline is wrong, counter with your ideal date. If the price is the main issue, consider what you are truly willing to accept. A smart counteroffer often addresses more than one term. You might counter a lowball price by agreeing to their number but asking them to cover their own closing costs or to use a specific, faster-moving title company. This demonstrates flexibility while still working toward your bottom line. The goal is to craft a response that feels fair and keeps the buyer at the table, making them feel they have won a concession even as they move closer to your position.

There is, of course, a point where a counteroffer may not be the right move. If an offer is profoundly disrespectful or comes with untenable contingencies, a flat rejection may be the best course of action to signal you are a serious seller. Furthermore, the counteroffer process can involve multiple rounds. You counter, they counter your counter, and so on. It is crucial to know your absolute walk-away point before this begins. The most successful negotiations end with both parties feeling they have achieved a good deal. By using counteroffers strategically, you guide the process toward that conclusion, transforming a potential adversary into a partner in finalizing the sale of your home.

References

Lewicki, R. J., Saunders, D. M., & Barry, B. (2015). *Negotiation* (7th ed.). McGraw-Hill Education. 

Shell, G. R. (2006). *Bargaining for advantage: Negotiation strategies for reasonable people* (2nd ed.). Penguin Books.

Hiam, A. (2008). *The negotiation toolkit: How to get exactly what you want in any business or personal situation*. AMACOM. 

Nagle, T. T., Hogan, J. E., & Zale, J. (2016). *The strategy and tactics of pricing: A guide to growing more profitably* (5th ed.). Routledge.

U.S. Small Business Administration. (2023). Negotiation skills: Managing offers and counteroffers. Retrieved from https://www.sba.gov/business-guide/manage-your-business/negotiation-skills