counteroffer

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Counteroffer

A second or subsequent offer to purchase an asset. For example, if the asking price on a house is $150,000, a potential buyer may make an initial offer of $125,000. In such a case, the seller may make a counteroffer for $140,000. Counteroffers are only made if the price is subject to negotiation.

counteroffer

An offer that differs from the previous offer in some significant detail.A counteroffer rejects the prior offer by operation of law, and instead makes a new offer that must either be accepted or rejected by the other party.

Example: A seller offers to sell her home “as is” for $250,000.

• A buyer offers to buy the home for $240,000, but the seller must replace the roof and recar- pet the house (counteroffer).
• The seller replies that she will sell for $235,000 “as is” (another counteroffer).
• The buyer replies that he will pay $210,000 “as is” (another counteroffer).
• The seller sees things going downhill and says, “Wait, wait, I accept your first counteroffer of $240,000 and I will repair the roof and carpet.” However, the seller cannot do this, because that offer no longer exists and cannot be accepted.

References in periodicals archive ?
If the counter-offer rears its ugly head again then remain philosophical.
This money will be found by the Ways and Means Committee [to pay for the House offer] and signed into law," he said, alluding to White House support for the House counter-offer.
ROA chief executive Michael Harris said: "It's unlikely that the jockeys' counter-offer will be accepted but, before it goes before the ROA council, I can't say for sure.
Search consultants at the Sanford Rose Associates conference also noted that the shortage of qualified job candidates for the vast quantity of position openings today has encouraged an increasing number of companies to extend lavish counter-offers to employees who tender their resignation.
A realistic counter-offer for an entry-level college grad might be $1,000 - $3,000 -- not $15,000.
In a recent the case, the broker was not allowed to re cover a commission where it was shown that he discussed the sale of the property after showing it to the purchaser but never attempted to arrange for a meeting between the parties and only relayed one offer and one counter-offer between the parties.
City officials said they hadn't been presented with that counter-offer yet, but would consider it.
Scott said: "The player's agent sent me details of their demands earlier this week and I have responded with a counter-offer.
Nippon Koei UK Topco, a 100%-owned subsidiary of Nippon Koei Co had presented a counter-offer to the one initially proposed by Arcadis.
However, in a case such as this, should a broker produce a purchaser who seeks to alter the terms of the sale, financial or otherwise, offered by the seller, such alteration of the terms would be deemed a counter-offer and the broker would not be entitled to a commission, assuming the seller refuses to accede to the new terms.
Some industry analysts believe a counter-offer may emerge.