What does counteroffer mean?
A counteroffer is a response to an earlier offer that rejects its original terms while proposing new ones, most often seen in negotiations over property prices, salaries, or contract conditions. Rather than simply accepting or declining, the responding party signals continued interest while pushing for better terms. In law, a counteroffer carries particular weight: it typically extinguishes the original offer, which can then no longer be accepted as it stood. The word appears frequently in real estate transactions, job offers, business deals, and legal drafting, and is common in both British and American usage. It conveys engagement rather than refusal — a counteroffer keeps a negotiation alive. Related terms include 'counter' (as a verb), 'counterclaim', and 'counterproposal'. Understanding counteroffers is essential for anyone navigating buying, selling, hiring, or bargaining, since so many final agreements begin life as one.
nounAn offer made in response to a previous offer, typically rejecting or modifying its terms, especially in negotiations over price, salary, or contract conditions.
- An offer made in reply to a prior offer, usually modifying its terms during negotiation.
"When the buyer proposed $300,000, the seller responded with a counteroffer of $325,000."
"After reviewing the initial bid of £40,000, the dealership submitted a counteroffer of £43,500."
"She turned down the first salary figure but was pleased when HR came back with a generous counteroffer."
The plural follows regular English noun inflection; it is common when discussing multiple rounds of negotiation.
"The two sides exchanged several counteroffers before reaching an agreement."
In real estate and job negotiations, the first offer is rarely the last — most accepted deals are actually someone's counteroffer in disguise.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of counteroffer
Counteroffer combines 'counter-', from Latin 'contra' meaning 'against' or 'in response to', with 'offer', from Old French 'offrir', ultimately from Latin 'offerre' meaning 'to present or bring before'. The compound emerged in English in the context of commercial and legal negotiation, with 'counter-' already well established in words like 'counterclaim' and 'countermand'. Its cognates include other Latinate compounds built on the same prefix, such as 'counteract' and 'counterbalance'.
How counteroffer is actually used
Counteroffer is used chiefly in commercial, legal, and employment contexts and carries a neutral register. In contract law, a counteroffer generally terminates the original offer, meaning the original offer can no longer be accepted — a point worth noting in formal writing.
Easily confused with counteroffer
A counterproposal is a formal alternative plan put forward in negotiation, whereas a counteroffer is specifically an alternative set of commercial terms such as price or salary.