Your house is finally up for sale, but all you’re getting are lowball offers. While ignoring them might seem like a great idea, it’s not the way to go. Instead, you need to keep your emotions in check, decide if the offer truly is low, and work with your realtor to make a counteroffer.
Below, we’ll explain the steps in detail and offer some other advice about lowball offers.
What to Do When You Receive a Lowball Offer on Your Home
1. Keep Your Emotions in Check
Getting an offer on your home is exciting. But, when you see that the offer is far below the asking price, it may not feel all that exciting. In fact, you may feel offended or angry. After all, it’s your home, you’re proud of it, and you have financial expectations.
Instead of letting your emotions get the best of you, keep your emotions out of it. Take every offer seriously. Think of every offer as a starting point for negotiation.
2. Determine if It’s Actually a Lowball Offer
Talk with your realtor about whether the offer really is a lowball offer. In general, a lowball offer is 15 to 25 percent (or more) below the listed price. However, just because you’re getting a $250,000 offer for your home that’s listed at $300,000 doesn’t automatically mean that it’s an unrealistic or lowball offer.
Lowball offers could indicate that you’ve priced your home improperly. The lowball offer might actually align with your home’s true market value.
If many (or even just any) of the following accurately describe your situation, it’s possible that you’ve set your asking price too high:
- You’re only getting lowball offers on your home
- You’re not having many or any showings
- No one shows up to your open house
- Minimal inquiries into your home and minimal internet traffic to your listing page
- Your agent recommended a lower asking price (closer to the lowball offer), but you insisted on pricing the home higher
- Similar homes in your neighborhood sold
- Your home hasn’t sold, and the listing expired
Take what you determine into consideration as you work with your realtor to counter the offer.
3. Work with Your Realtor to Make a Counteroffer
The best move is to make a counteroffer, even if you’re set on selling the home closer to your original asking price. Making a counteroffer shows the buyer that you’re willing to negotiate, but you’re not able to go as low as they’d like.
Countering lowball offers might feel like a waste of time, but it doesn’t take much time at all. And it can pay off big time. After all, doing so will keep the buyer engaged in your property, and they may come back later with a more realistic offer.
What Should I Do If My Home’s Sale Price is Firm?
Sometimes, especially in a seller’s market, the price you set is firm. If that’s the case, you still shouldn’t ignore lowball offers. Instead, you can politely decline them. A simple “Thank you very much for the offer, but the price is firm at this time.” only takes a minute to send.
The message shows buyers that you’re not desperate; you’re only interested in serious offers. If the buyer really does want to buy your home, they’ll understand what it will take to be taken seriously. They may even counter or come up to the asking price.
Should You Accept a Low Offer on Your House?
Even after making counteroffers, you may still find yourself with only low offers on the table. Whether or not you accept a low offer is entirely up to you.
Maybe, If It’s Your Best—or Only—Option
Sometimes, “low” offers end up being your only offers. If you find yourself in any of the following situations, there’s a chance that the low offers on the table are the best you’re going to do:
- It’s a buyer’s market, and you’re only getting low offers
- You’ve purchased another property and don’t have time to wait for other offers to come in
- Your home has been on the market for a long time
- Your home needs work to make it worth the asking price, but you don’t have the time or money to do the repairs
Maybe, If the Other Offer Terms Align with Your Goals
For some sellers, a lower offer may be acceptable because of other terms in the offer. They may help you achieve a goal, such as selling your home faster so that you can buy another home. Or, they may lower the risk of a deal falling through due to financing issues, or maybe the buyer has waived their home inspection.
Terms that can make an offer worth considering despite the price offered include:
- A mortgage pre-approval letter (vs. a pre-qualification letter)
- A larger down-payment
- All-cash offer (no mortgage contingency)
- Fewer inspection or real estate contingencies
- Sooner closing date
Final Thoughts on Lowball Offers
Although it’s harder for some than others, you should never be insulted by any offer. Remember, the goal is to sell your home, and a low offer is still an offer. Simply keep your emotions in check, thank buyers for their offer, and make a counteroffer. Until you negotiate, you don’t know where things will end up. The buyer lowballing you could end up making a competitive offer on your home.
