What Is a Counter Offer and How Do I Respond to One in San Diego?

What Is a Counter Offer?

A counter offer is the seller's formal response to your purchase offer — accepting some terms while modifying others. Instead of simply accepting or rejecting your offer, the seller proposes different terms: a higher price, a different close of escrow date, fewer concessions, or modified contingency periods. In California, counter offers are typically written on the Seller Counter Offer (SCO) form.

What Sellers Commonly Counter On

• Purchase price: The most common counter — seller wants more than you offered
• Close of escrow date: Seller needs more or less time than you proposed
• Contingency periods: Seller wants shorter inspection or loan contingency timelines
• Seller concessions: Seller reduces or eliminates closing cost credits you requested
• Earnest money deposit: Seller wants a larger initial deposit than you offered

How to Evaluate a Counter Offer

When you receive a counter offer, evaluate each modified term against your priorities and your CMA analysis. The most important question is whether the counter price is still supported by market data. If the seller countered at a price above comparable sales, that creates appraisal risk — the lender may not finance the full amount. Price each counter in the context of what the property will actually appraise for.

Responding to a Counter Offer

• Accept the counter: Sign the Seller Counter Offer as written — you are now in contract
• Counter the counter (BOCA): Write a Buyer Counter Offer accepting some terms and modifying others — the negotiation continues
• Reject the counter and walk away: If the terms do not work for you, you are free to decline
• Let the counter expire: Counter offers have expiration times — if you do not respond by the deadline, the counter lapses

Counter Offer Negotiating Strategy

The best counter offer responses are grounded in data, not emotion. If the seller countered at $810,000 and your CMA supports $795,000, a data-backed counter at $795,000 with a clear comp explanation is more compelling than simply splitting the difference. Rieder Homes Group negotiates counter offers on behalf of our buyer clients daily.

Related Reading on RiederHomes.com:

→ Blog #86: Making an Offer

→ Blog #87: Earnest Money

→ Blog #89: Contingencies Explained

→ Blog #88: Multiple Offer Strategy

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556