What type of offer occurs when a seller changes the terms of an initial purchase offer and returns it to the offeror?

A counteroffer occurs when a seller modifies the terms of an initial purchase offer and returns it to the offeror. This act signifies that the seller does not accept the original offer as it stands but instead proposes new conditions for consideration. The original offer is effectively canceled once a counteroffer is made, as it indicates a desire to negotiate and change the terms.

In real estate transactions, counteroffers are a common part of the negotiation process, allowing both parties to come to an agreement that is satisfactory to each. By making a counteroffer, the seller communicates their willingness to engage in further negotiations, shifting the dynamic of the deal from a single proposal to an interactive exchange.