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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 ?
"Counteroffers are typically a knee-jerk reaction to broader staffing issues," says Paul McDonald, senior executive director for Robert Half.
Sending purchase orders that only acknowledge the material and pricing, but were otherwise silent, constitutes an acceptance of a suppliers proposal and cannot be a "counteroffer" proposing a sale with no terms.
Second, if you accept the counteroffer, the fact that you considered leaving the company could mean your loyalty could be called into question.
Where the different or additional term in a response to an offer is a "dickered" term--a negotiated term or a term to which parties typically pay attention such as price, subject matter, or quantity--it is a counteroffer under the historic common law matching acceptance rule to which section 2-207 has no application.
With multistage bargaining, we aim to represent real-life bargaining which is typically characterized by a series of offers and counteroffers and step-by-step bilateral convergence.
The best way to avoid a counteroffer, of course, is to keep key employees happy in the first place.
could sink the deal and make a counteroffer of helicopter gunships to Pakistan that could be too good to refuse.
According to the Journal's article on Saturday, a possible counteroffer was also in the works by investor Carl Icahn, who is opposed to the current proposed offer and earlier this month reached an agreement with Dell to examine the company's books.
President Barack Obama made a counteroffer to Republicans on how to avoid the fiscal cliff of tax hikes and spending cuts set to take place at the start of 2013.
The video provider responded to the broadcaster's original offer with a counteroffer. In response, the broadcaster put forth a different offer.
Despite the rising prevalence of counteroffers, only 39 percent of employers say it is at least somewhat common for employees to accept a counteroffer.
Unfortunately, too many dynamics are already in play during a resignation and changing your mind and accepting a counteroffer is very dangerous and statistically not in your favor.