What is the purpose of a "counteroffer"?

A counteroffer serves as a response to an initial offer where one party proposes modifications to the terms laid out in the original offer. This process allows for ongoing negotiations rather than concluding them. By making a counteroffer, the party indicates that while they are interested in the transaction, they desire adjustments to specific terms such as price, closing date, or contingencies.

The purpose of this is to facilitate a dialogue that can lead to an agreement which satisfies both parties. In real estate transactions, where both buyer and seller often have varying interests and needs, the counteroffer plays a crucial role in refining the terms of the deal, ultimately leading to a mutually acceptable contract.

The other options highlight misunderstandings of the counteroffer concept. Ending negotiations or withdrawing an offer completely does not advance the process, and confirming acceptance without changes indicates agreement rather than negotiation, which is not the purpose of a counteroffer.