What is a counteroffer and how does it affect the original offer?

A counteroffer is a response to an offer that changes one or more terms of the original offer, such as price, closing date, or contingencies. A counteroffer legally rejects and terminates the original offer, creating a new offer that the original offeror can accept, reject, or counter again. The original offeror cannot later accept the original offer once they have received a counteroffer because that offer no longer exists. Multiple rounds of counteroffers are common in real estate negotiations.