A counter offer is used when you receive an offer from the other party (buyer or seller) and you decide you do not want to accept the offer as is and wish to change something about the offer. The entire process starts when a buyer submits a purchase and sales agreement to purchase a home. When it is submitted to the seller the seller can do one of three things: a) accept the offer as is; b) reject the offer; c) make a counter offer.
In my example the seller decides he doesn't like the price being offered and does not want to provide a home warranty requested by the buyer, so the seller submits a counter offer with a new price and strikes the request for the home warranty. The buyer now has to decide whether to accept the offer, reject the offer, or make another counter offer. The process continues until both parties accept the last counter offer or someone rejects the last counter offer and does not submit another counter offer.
The process can get a little difficult to keep track of, but most good Realtors have forms they use to track the counter offers which require signatures of both parties for acceptance.
Good luck in your home search!
Prudential Network Realty
Orange Park, FL
C: (904) 327-5676
O: (904) 269-1716