Definition for: Counter Offer
A "counter offer" is a seller's response to a buyer's offer where the seller proposes changes in the original offer. Counter offers typically occur in the real estate context. For example, counter offers in home purchase offers frequently include changes in price or closing conditions. The counter offer legally effectuates the rejection of the original offer with a new offer back. Both the buyer and the seller must sign the counter offer for it to become a binding agreement.
