What is a counter-offer and how should I
respond?
Want to win the house in Milton? Here’s exactly how to respond to a counter-offer — and get the edge.
Stop guessing. Know what a counter-offer really is
A counter-offer is simple: it kills the original offer and becomes a new offer. In Ontario that’s the rule — once a seller counters, the buyer’s original terms are gone unless the buyer signs the counter. That makes the response moment the most powerful point in the deal. One signature, one clause, one number can win the home or lose it forever.
If you’re buying or selling in Milton, you need tactics that match a fast-moving, commuter-friendly market where inventory is tight and buyers move quickly. Below are clear, actionable steps to handle counter-offers like a pro.
Why counter-offers matter in Milton’s market
- Milton is part of the Greater Toronto Area growth corridor. Demand regularly spikes when new commuters search for value.
- Tight inventory and strong buyer interest mean multiple-offer situations are common. Sellers use counter-offers to raise price or improve terms. Buyers use counter-offers to protect their priorities.
- Time kills deals. Slow responses equal missed opportunities.
In short: a counter-offer is where the deal is won or lost. Treat it like the negotiation battlefield it is.
The legal reality you must remember
- A counter-offer = rejection of the original offer and creation of a new one.
- The new offer must be accepted exactly as written to form a binding Agreement of Purchase and Sale in Ontario.
- Acceptance must be in writing and within any deadline stated.
That legal fact changes strategy. Don’t treat counters like polite suggestions. They’re legal weapons.
Quick checklist to evaluate any counter-offer
- Who made the counter? (Seller, buyer, or conditional third party?)
- Which terms changed? Price? Closing date? Deposit? Conditions (finance, inspection)? Inclusions? Leasebacks?
- Is the counter conditional? (e.g., subject to review/approval by seller)
- What’s the deadline to accept? Make sure it’s in writing.
- What’s the market context right now in Milton? (Days on market, recent comparable sales)
- Will agreeing eliminate protections you need (like financing or inspection)?
- Can you meet halfway on non-price terms to keep price where you want it?
Answer these fast. The decision window is short.
How buyers should respond — step-by-step
- Read the counter carefully and line-item the changes. Don’t assume anything.
- Rank your priorities: price, closing date, deposit, conditions, inclusions.
- Check market reality: are comparable homes selling over asking? Is there another offer?
- Decide your stance:
- Accept verbatim if the changes are minor and the property fits your plan.
- Counter back if you can improve terms without blowing your budget.
- Walk away if the counter removes essential protections (e.g., waiving financing on a risky loan).
- If you counter, be crisp and specific. Change one or two things max. Too many changes create chaos.
- Use non-price leverage: adjust closing date, offer a higher deposit, shorten condition periods, or add a flexible rent-back. Those matter to sellers in Milton.
- Put it in writing through your REALTOR® immediately. Verbal ‘okay’ is not binding.
- Move fast. If you need time to consult, ask for a clear short extension — but expect pushback.
Buyers: increasing your deposit from 2% to 5% or offering a more convenient closing date can often beat a price-only counter. Sellers value certainty.
How sellers should respond — step-by-step
- Know what you want beyond price: quick closing? higher deposit? fewer conditions?
- If you received multiple offers, use a counter to push earnest deposits or reduce conditional time frames.
- Make your counter clean. A clear price increase or a deadline compresses buyer indecision.
- Avoid micro-managing terms that offend buyers. Asking for too many concessions (e.g., removal of legal representation or massive reductions in standard conditions) can kill momentum.
- Keep communication professional. Be firm but reasonable. You want signed paper, not drama.
Sellers: a well-crafted counter creates urgency and separates committed buyers from tire-kickers.
Negotiation levers that actually move the needle in Milton
- Deposit size: Bigger deposit = stronger signal. In competitive Milton listings, a larger deposit often wins.
- Closing date flexibility: If you can match a buyer’s preferred date, you gain negotiation power.
- Conditional timeframes: Shorten inspection and financing conditions to 24–48 hours for highly competitive deals, but only if buyer can honor it.
- Inclusions and exclusions: Reduce ambiguity. List what stays and what goes.
- Escalation or subject-free offers: Use carefully. Escalation clauses can backfire if not written tightly.
Common mistakes that cost you the house or the sale
- Responding verbally and assuming it’s binding.
- Ignoring the effect of a counter nullifying the original offer.
- Making emotional, last-minute changes that destroy clarity.
- Letting fear drive acceptance of unfavorable terms.
- Over-negotiating minor points that irritate the counterparty.
If you want the home, be decisive. If you want protection, be disciplined.
Sample responses you can use — pick and adapt
Buyer accepting counter verbatim:
“We accept the Seller’s counter dated [date] on the terms as outlined. Please find attached executed Agreement of Purchase and Sale.”
Buyer countering on price but offering stronger deposit:
“We decline the Seller’s counter dated [date]. New counter: Purchase price $X, deposit increased to $Y, same closing date, same conditions (finance/inspection 5 business days). Offer expires [time/date].”
Seller pushing for higher deposit and cleaner conditions:
“Seller counters: Purchase price $X, deposit to be increased to $Y within 48 hours, and inspection condition reduced to 3 business days. Offer expires [time/date].”
Keep messages tight and always include expiry timestamps.
How your REALTOR® should protect you
- Spell out every change in writing.
- Confirm any verbal conversations in a follow-up email/text and include the revised offer.
- Run quick comps to validate price moves in your neighbourhood in Milton.
- Advise on conditional risk — don’t waive financing or inspection without a plan.
A strong agent turns a counter-offer moment from chaos to control.
Final rules to live by
- Time is real currency in Milton negotiations. Respond fast.
- Put everything in writing. Verbal agreements equal regrets.
- Prioritize what matters. Price isn’t the only winning move.
- Don’t lose protections for a small price drop. If you need financing or inspection, keep them.
- Use deposit and timing to show seriousness.
Negotiation is math plus psychology. Know the numbers; control the moment.
If you want expert advice tailored to Milton listings — comps, deposit norms, and negotiation scripts — call or email. I handle these negotiations daily and can help you respond in the way that preserves your interests and increases your odds of success.
Contact: Tony Sousa, Local Milton REALTOR®
Email: tony@sousasells.ca | Phone: 416-477-2620 | https://www.sousasells.ca
FAQ — quick answers buyers and sellers ask about counter-offers
Q: Does a counter-offer cancel my original offer?
A: Yes. In Ontario a counter-offer legally rejects the original and becomes a new offer. If you want the original terms back, you must sign the counter or submit a new offer.
Q: How long does a counter-offer last?
A: The expiry is whatever date/time is written on the counter. If none is listed, respond immediately — the other party can retract or accept other offers.
Q: Can I accept part of a counter-offer?
A: No. A counter-offer must be accepted exactly as written to form a binding agreement. If you want changes, you must counter again.
Q: Should I waive conditions to win in Milton?
A: Only if you fully understand the risk. Waiving financing or inspection can make your offer stronger, but you could be stuck with costly problems. Use this only with clear plans (cash, pre-approved mortgage, or quick inspection).
Q: What deposit is standard in Milton?
A: Deposits vary, but in competitive situations buyers often offer 2–5% of the purchase price. Larger deposits signal commitment and can improve your position.
Q: Can a seller counter more than once?
A: Yes. Each counter is a new offer. Be prepared for multiple exchanges, and keep changes minimal to avoid confusion.
Q: Who should draft the counter?
A: Your REALTOR® drafts and presents counters in Ontario. Always have your agent or lawyer review key changes.
Q: What happens if I miss the deadline to accept a counter?
A: The counter expires. The seller can accept another offer, re-counter, or go back to the market.
Need help with a specific counter-offer in Milton? Call Tony at 416-477-2620 or email tony@sousasells.ca — quick, clear, and decisive advice tailored to the local market.
