What occurs when a seller makes a counteroffer to a buyer's original offer?

When a seller makes a counteroffer to a buyer's original offer, this action effectively terminates the original offer. A counteroffer is a response to an initial offer that modifies its terms and conditions, signaling that the seller does not accept the original offer as it stands. Instead, the seller proposes new terms or conditions for the sale, thus creating a new offer for the buyer to consider.

By making a counteroffer, the seller indicates a willingness to negotiate rather than accepting the buyer's initial proposal. This means that the buyer's original offer is no longer valid, as the negotiation dynamics have shifted. The buyer can then choose to accept the counteroffer, make a new counteroffer, or reject the counteroffer entirely, thus continuing the negotiation process. This understanding is crucial for anyone involved in real estate transactions to ensure clear communication and negotiation practices.