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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.
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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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Japheth Ntiba assured the officials that the inter-ministerial committee set up last month had began working on a counter offer which will soon be tabled.
The lecturers, who resumed the strike on March 1 over low pay, nearly three months after ending a similar protest, are insisting on a counter offer before resuming talks.
This employment trend has become known as a counter offer. It may seem a win-win situation for both the employer and the employee -- after all the employer keeps an experienced member of staff, saving time and money on recruiting and training a replacement, and the employee receives more cash and a new job title without the upheaval of leaving -- but counter offers are not all they are cracked up to be.
In response to the news of Air Canada's potential counter offer, Onex Corp.'s chairman has stated that he is willing to increase his offer if he thinks Air Canada's offer 'is one we can compete with.'
But Nottingham Forest caretaker-boss Pearce is poised to step in with a counter offer that's sure to appeal to the 31- year-old.
It comes as shares suffer a three-day 5.1% skid following reports earlier this week that Comcast (CMCSA) isn't likely to make a counter offer for FOXA assets, which Disney (DIS) is in the process of acquiring (Raymond James out today saying they expect a higher bid from CMCSA).
The secretary general said the union submitted its draft proposal in October last year for negotiation, as agreed, but the ministry and the Council of Governors have never made a counter offer.
He said: "Didier knows our offer, and he has made a counter offer. Now we are evaluating some things."
US consumer goods packaging maker Silgan Holdings (NASDAQ:SLGN), expected to respond on Thursday to New Zealand billionaire Graeme Hart's all-cash USD1.64bn (EUR1.2bn) rival bid for Graham Packaging Co (NYSE:GRM), may match the counter offer, but will not enter a bidding war, Reuters reported.
Following the approach, the Liverpool-based retailer invited its current management team to make a counter offer, a spokesman revealed.
Comcast made a $65 B counter offer for Fox assets, 20% over Disney's last price, following the court approval of ATT-Time Warner.

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