In a situation where a buyer made an offer below the asking price, what happens if the seller makes a counter offer?

When a seller makes a counter offer in response to a buyer's offer, it effectively voids the original offer. This is because a counter offer introduces new terms or conditions that the seller is willing to accept, essentially replacing the initial offer. The buyer is then released from their original offer, creating a new negotiation dynamic.

The counter offer indicates that the seller is not accepting the buyer's initial proposal but is proposing different terms. At this point, the buyer can either accept the counter offer, negotiate further, or decline it altogether. The action of countering means the original offer is no longer on the table, so the buyer is under no obligation to adhere to it.

In contrast, the other options do not accurately reflect the nature of the real estate negotiating process following a counter offer. For instance, the seller can choose to reject the original offer by making a counter, hence the buyer's binding obligation to the initial offer no longer stands. This dynamic is crucial for both buyers and sellers to understand as it impacts their negotiation strategies.