How Should You Respond to a Lowball Offer on Your Home?

By Nick Berard

Nick Berard is a world-class Realtor with a passion for helping clients manage wealth through real estate.

Getting a lowball offer on a home can feel like a punch in the gut, but don’t rush to reject it. Instead, take a moment to consider a strategic approach. With inventory still tight and buyers being more cautious, a low offer doesn’t have to be a dead end. You just need the right strategy to turn it into a positive outcome. Let’s explore four effective strategies for handling this situation.

1. Recheck the market comparables. When selling a home, it’s crucial to look at all the relevant data. Not every agent does this thoroughly; some may just follow the client’s wishes without checking the market comparables. As agents, we recheck what similar homes have sold for. Whether we share this information with the buyer’s agent or discuss it directly with the buyer, it’s essential to recognize any shifts in the market when responding to the offer.

Presenting stronger or more relevant comparables for your home can effectively educate the buyer about its true market value. Sometimes we rely on data from 30, 60, or even 90 days ago, but there may be more recent sales to consider.

The most successful home sellers I work with base their decisions on current market information. So, when you get a lowball offer, reviewing comparable sales is important. Making decisions based on solid data, not emotions, will help you in negotiations.

2. Always counteroffer. I can’t tell you how often I’ve been in a negotiation where someone asks, “Do you think they’ll accept this?” My advice? Always counteroffer.

Once we’ve checked the updated market comparables to see if we’re in sync with the market, send a counteroffer. Some buyers start with a low offer to gauge your motivation, and they probably aren’t credible homebuyers if they’re unwilling to negotiate.

In most situations, a counteroffer keeps the conversation going and clarifies where both parties stand. Generally, it’s wise to put a counteroffer in writing because it feels more real and serious, unless you’re so far apart that it seems unrealistic to reach an agreement. If that’s the case, you might choose not to respond. Otherwise, keep the dialogue open to help achieve your selling goals.

3. Find a middle ground and negotiate for better terms. Negotiation isn’t just about the price; it’s also about the terms of the deal, like inspection timelines and contingencies. If a buyer is low on cash, there are still ways to make the deal work. For example, offering a credit toward closing costs to help lower their interest rate can make their future payments more manageable.

The terms can significantly impact what the buyer ultimately pays over time. By exploring different terms, you can find common ground that benefits both parties without compromising your bottom line. This approach helps you reach a successful negotiation that works for everyone involved.

4. Different people have different negotiation styles. Everyone has their own negotiation style. Some buyers might say, “I have cash, so I should get a big discount.” Others may always start at half of what you’re asking just to negotiate. The key is to set emotions aside and stay calm.

As your trusted agent, I’ll handle the heavy lifting. We need to understand the buyer’s perspective: Are they expecting a steep discount because they have cash, or do they just never offer full price?

Negotiation isn’t one-size-fits-all. It’s essential to gather as much information as possible about the buyer’s situation so we can set realistic expectations for our response.

Lowball offers aren’t fun, but they don’t have to be deal-breakers. If you’re selling this spring and want expert advice on pricing, negotiating, or market trends, let’s talk. Call or email me today at (360) 770-3245 or nickberard@kw.com. I’m here to help you get the best deal possible.