There is no reliable rule that says a seller should counter by 1%, 2% or any other fixed amount. A useful counteroffer starts with the home’s evidence-based value, the buyer’s opening position, current competition and the complete terms of the offer.
Start With Market Value, Not the Asking Price
The list price is a marketing decision. Your counter should be anchored to recent comparable sales, current competing listings, condition, location and the response your listing has received. If the buyer’s opening offer is below asking but still within a realistic value range, an aggressive counter may push away a workable deal.
If you are still deciding whether the buyer’s number is truly low, first read Should I Accept an Offer Below Asking Price?.
How Far Apart Are You and the Buyer?
A small gap can justify a different strategy from a very large one. If the buyer appears serious and the difference is negotiable, a counteroffer can test whether there is room to move. If the opening offer is far outside the market evidence, you may choose to counter closer to your evidence-based range or reject it, depending on demand and your instructions.
Days on Market Should Change the Negotiation
A seller in the first few days of a strong launch may have more leverage than a seller after several weeks of limited activity. If the home has had many showings but no other offers, the current offer may contain useful feedback about what buyers think the property is worth today.
Counter the Whole Offer, Not Just the Price
- Price: decide the number you can support with market evidence.
- Conditions: financing, inspection and other conditions affect certainty.
- Deposit: review amount and timing.
- Closing date: align it with your move, carrying costs and next purchase.
- Inclusions and exclusions: make sure appliances, fixtures and other items are clear.
- Other clauses: have your representative and lawyer review unusual wording where appropriate.
A lower price with stronger terms may sometimes be more attractive than a higher number with more uncertainty. See Should I Accept a Conditional Offer on My Home? for a fuller comparison.
Know Your Bottom Line Before You Counter
Before negotiating, establish the lowest price and the key terms you would realistically accept. That number should reflect likely selling costs, mortgage payout, your next move and the current market—not simply the amount you originally hoped to receive.
Should You Split the Difference?
Sometimes splitting the difference is a practical negotiation tool, but it should not be automatic. If your counter is already supported by market evidence, moving halfway may give up value unnecessarily. If the buyer’s offer is stronger than the list price suggests, refusing to move at all may lose a reasonable opportunity.
What If There Are Competing Offers?
RECO notes that sellers decide how offers are presented and responded to, and may accept the best offer, negotiate with one buyer, set other offers aside while negotiating, or reject all offers. Competition can increase leverage, but buyers can also choose to walk away, so negotiation should still be based on your goals and the quality of the offers.
Read RECO’s competing-offer guidance for sellers and my Competing Offers in Ontario Real Estate.
A Practical Counteroffer Framework
- Recheck recent sold comparables and current competition.
- Compare the buyer’s offer with your realistic value range.
- Review conditions, deposit, closing date and other clauses.
- Decide your preferred result and your minimum acceptable result.
- Choose whether to counter, accept or reject based on the whole deal.
For pricing context, use How to Price Your Richmond Hill or Markham Home to Sell in 2026.
Have an Offer in Front of You?
I can help you compare the offer with recent sales, competing listings and the complete terms before you decide how to counter. Legal interpretation of contract wording should be reviewed with an Ontario real-estate lawyer.
This article provides general Ontario real-estate information only and is not legal advice. The appropriate negotiation strategy depends on the property, market evidence, contract terms and seller instructions.