Home seller counter offers are used to change the terms of the buyers purchase agreement

Let's say you get an offer on your home. All the terms and contingency periods of the offer look great, but you want more money.
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Use a counter offer!
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When you counter someone, that means you have accepted all of the terms of the buyers offer, except for the items you list in your counter offer.
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So if everything about the offer looks great except for the $900,000 offer amount, your counter offer will simply say "Purchase price to be $1,000,000".
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Now the buyer knows exactly what you do not like about their offer.
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The buyer can then accept, reject, or counter you back.

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