How to Respond to Lowball Offers Without Losing Your Cool

Selling your home can be both an emotional and financial journey, and encountering a lowball offer can certainly test your patience. You’ve invested time, effort, and potentially significant resources into your home, so an offer well below your asking price might feel like a slap in the face. However, before you dismiss the offer outright or react in anger, it's important to handle such offers with professionalism (this is where we come in!) and strategic thinking.

Stay Objective and Take a Deep Breath

It’s easy to take a low offer personally, but real estate is a business transaction. Buyers may have their own reasons for submitting a low offer—they could be testing the waters, unfamiliar with the market, or just looking for a deal. Instead of reacting emotionally, approach the situation with a level head, and it could end up benefiting you. Don't worry, we know this is easier said than done - but since we've helped thousands of families through both high and low offer negotiations, we've got you!

Evaluate the Offer Carefully

Not all lowball offers are the same. Before deciding to reject or counter the offer, consider the following questions:

• How far below your asking price is the offer? A 10% under-asking offer is different from a 30% under-asking one and the good news is that we've got something we can start working with.
• Are there any contingencies that make the offer less appealing? For example, does the buyer require extensive repairs or have financing conditions that could complicate the sale? We're always looking for where we've got the most wiggle room and what's most important to you in the process.
• Is the buyer pre-approved and serious about purchasing? A low offer from a financially strong, motivated buyer may be worth considering and so might one with some potential challenges - we'll help you weigh the risks of each and find your comfort zone.
• Are there strong terms that could offset the low price? If the buyer is offering a quick closing, fewer contingencies, or an all-cash deal, it might be worth negotiating despite the initial number. Just imagine we don't work with this one - we'll talk about the ups and downs that could follow.

Carefully evaluating these factors will help you determine whether the offer has potential or if it's best to move on and you'll be in charge every step of the way.

Respond with a Counteroffer

Instead of rejecting a low offer outright, consider making a counteroffer that is closer to your listing price or reflects fair market value. Most buyers expect some negotiation, and by countering their offer, you keep negotiations open and signal to the buyer that you are willing to work with them—just not at an unreasonable discount.

Justify Your Price with Market Data

A great way to counter a low offer is to back up your price with facts and data. In the Valley, providing recent comparable sales (comps) that support your asking price can be particularly effective. Highlighting your home's unique features—such as recent upgrades, a larger lot, or prime location—can help demonstrate its value to buyers who may not be familiar with current market trends. We LIVE for market data and can help tell the story in numbers and graphs along with strategic words and ton of experience in negotiating.

Understand the Buyer’s Motivation

Understanding the motivation behind the buyer’s offer can give you an edge in negotiations. Your real estate agent can communicate with the buyer’s agent to uncover insights such as:

• Are they serious buyers or just bargain hunters? Some buyers submit low offers to see if a seller is desperate, while others may have genuine financial constraints.
• Are they competing for other properties? If they have multiple offers out, you might have more flexibility in holding firm.
• Do they need to move quickly? Buyers with a pressing timeline, such as those relocating for a job or with a lease expiring soon, may be more willing to negotiate on price with the right counteroffer.

By understanding what drives the buyer, you can tailor your response and strengthen your negotiating position - we understand the unique situations of many buyers because we've walked alongside them before, too!

Consider Non-Monetary Negotiation Points

If the buyer isn't willing to increase their price significantly, they may be able to offer other concessions that make the deal more appealing to you. Instead of focusing solely on price, we'll help you explore other areas where the buyer could add value:

• A faster closing timeline: If you need to sell quickly, a buyer who can close in 15-30 days instead of the standard 45-60 days might be worth considering.
• A leaseback option: If you need extra time to move, some buyers might allow you to rent the home back temporarily after closing.
• Minimal or waived contingencies: Buyers willing to waive financing, inspection, or appraisal contingencies reduce the risk of delays or deal cancellations.
• Covering seller costs: Some buyers might be open to covering costs like title insurance, escrow fees, fiduciary or HOA transfer fees, reducing your out-of-pocket expenses during your move.
• Flexible moving terms: A buyer who accommodates your ideal move-out date can save you the stress and cost of temporary housing or storage.

Depending on your situation, these terms can be just as valuable as a higher offer. We'll look at ALL the creative solutions that can make the deal work in your favor, together.

Know When to Walk Away

Receiving low offers can be frustrating, but sometimes they can offer valuable insights. Is your asking price too high compared to current market conditions in the Valley? Your real estate agent can help you assess whether to accept now, wait for better offers, or make strategic price adjustments to attract more serious buyers weighing your concerns, appetite for risk, and expected next steps.

However, if the offer is truly unreasonable and the buyer refuses to negotiate, it's perfectly acceptable to walk away. Not every offer will work and not every contract will stick but we can help you identify the red (and green!) flags of each before you decide to walk away.

Work with a Skilled Real Estate Agent

An experienced real estate agent is your best ally in handling lowball offers. They provide market insights, negotiate on your behalf, and keep the transaction professional. Agents understand buyer psychology and can craft counteroffers to maximize your chances of securing a favorable deal, ensuring you make informed decisions throughout the selling process. The best agents are not only good marketers, negotiators, therapists (we know it's stressful!) but also EXPERT communicators who know exactly what to say.

Final Thoughts

A lowball offer doesn’t mean your home isn’t valuable—it just means the right buyer hasn't come along yet. By staying calm, keeping negotiations open, and relying on your agent's expertise, you can confidently manage these offers and secure the best deal for your home.

Thinking about selling? Let’s connect and develop a strategy to get you top dollar for your home—while keeping the stress at bay.