A response to an offer that changes one or more terms of the original proposal. When a seller counters, the original offer is effectively dead, and the buyer must decide whether to accept the new terms, counter back, or walk away. Counteroffers can go back and forth multiple times before a deal is reached -- or isn't.
Why It Matters
Negotiation is the heartbeat of real estate. A counteroffer is a signal that the other side is interested but not at your price or terms. Understanding how to read and respond to counteroffers is a skill that can save -- or cost -- you thousands.
Real-World Example
You offer $720,000 on a condo in North York with a 60-day close. The seller counters at $745,000 with a 45-day close. Your original offer is now dead. You counter back at $735,000 with a 50-day close. The seller accepts your second counter, and the deal is done at $735,000 with a 50-day closing timeline.
Ontario & GTA Context
In Ontario, counteroffers are made using the same OREA offer form with changes initialled by the countering party. Each counteroffer has its own irrevocable period. Under TRESA, agents must present all counteroffers promptly to their clients. There is no limit to the number of counters that can go back and forth.
How It Works in Practice
When you receive a counteroffer, focus on the full picture -- not just the price. Closing date, included chattels, and condition timelines are all negotiable. A good agent will help you identify which terms the seller values most and craft a response that works for both sides.
Common Questions
How long do I have to respond to a counteroffer?▾
Can the seller counter multiple offers at once?▾
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