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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

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 ?
2 Avoid empty promises Experience shows that more than 80% of people who accept a counter-offer still leave the business within 12 months of their initial resignation.
Otherwise, this may give them the ammo they need to come back with a counter-offer. NOTE: The majority of employees that accept a counter-offer and remain with their current employer leave within six mouths to a year.
VW and its supervisory board chief Ferdinand Piech have now tried to turn the tables on Porsche with a counter-offer.
Sir Tom, who already owns the larger rival garden centre chain Wyevale as well the Blooms of Bressingham brand, could see his plans for a counter-offer frustrated as Tesco has already built up a 28% stake in the company.
On the contrary, the subcontract is subject to mutual agreement, whether that agreement comes in the form of the general contractor's acceptance of your bid, your acceptance of the general contractor's counter-offer, or a negotiated solution such as a mutually agreed-upon subcontract rider.
Late last week House conferees made a $299 billion counter-offer to the Senate's earlier offer to fund a six-year highway bill at $318 billion.
Basel-based pharmaceutical company, Novartis, is ready to start negotiations on a counter-offer for the Franco-German drug maker, Aventis, This move is said to be conditional on Aventis giving it the green light, and the French government not getting involved.
'I sincerely believe that we will arrive at an agreement, I am optimistic because the counter-offer that he has made to us through his agent is negotiable.'
The company denied the story, which appeared in a Finnish regional news paper, which claimed that the company had received an acceptance to the counter-offer from NRJ International LLC, and said that it had no knowledge of any purchase agreement.
As expected, Mexican trade officials either have proposed or are expected to propose a counter-offer for reaching an interim agreement on lingering sugar and high fructose corn syrup (HFCS) trade issues between the U.S.
Johnson said he'd sell it for $2,000, but he accepted Schuyff's counter-offer of $1,500.
Michael Caulfield, the JA's executive manager, said: "The jockeys felt that the offer could have been a bit more attractive, so a counter-offer has gone back to the owners for them to make a decision.