Selling your home can be exciting but stressful, and part of this stress can be attributed to the push-and-pull of offers and negotiations. After all your effort to prepare and list it, getting a lowball offer – one far below your expectations – can be frustrating. However, it’s important not to take it personally.
Instead of feeling discouraged, see it as a chance to negotiate for better. A smart response can turn a low offer into an opportunity to find common ground and move closer to a deal that works for you. With the right approach, you can stay in control and work toward a successful sale.
What Is A Lowball Offer?
A lowball offer happens when a buyer submits a significantly lower price than your asking price – sometimes so low it catches you off guard. How low “low” is depends on market conditions. In competitive areas with high demand, even an offer 5% below asking can feel off, while in slower markets, offers 10-15% lower might still be reasonable.
In busy cities, homes usually sell within 1-3% of the asking price, whereas in quieter areas there’s more room to negotiate. If an offer is well below what similar homes are selling for, it’s likely a lowball offer. Knowing these market dynamics helps you respond wisely instead of reacting emotionally.
Why Buyers Make Lowball Offers
It might seem disrespectful, but there are a few common reasons behind lowball offers. Understanding a buyer’s motivation can help you decide whether to negotiate, politely reject, or hold out for something better. Let’s break down these motivations.
Testing Seller's Desperation
Some buyers submit low offers to test how eager you are to sell, assuming you might accept a quick deal if you're in a hurry, whether due to a job move or already buying another home. These offers often probe your willingness to negotiate.
Countering with a fair price can push them closer to market value, while accepting too quickly could mean selling for less than your home is worth.
Securing A Deal Under Market Value
Naturally, many people want to get the best price possible. Real estate can be an emotional process, but there’s also a business aspect that’s purely numbers-driven. A buyer might start with an ultra-low offer, thinking it leaves plenty of room to negotiate upward, and hoping you’ll still come down from your original list price in the end.
This strategy is essentially an attempt to anchor negotiations at a lower figure, with the buyer aiming to settle somewhere in the middle and score a deal under fair market value.
Buyers' Perception Of FSBO As Less Professional
Selling your home as “For Sale By Owner” (FSBO) can make some buyers assume you lack real estate experience and negotiation skills. They may feel more confident making low offers, thinking you won’t know how to respond. While this assumption isn’t fair, FSBO sellers should be prepared to handle these situations and counter wisely.
Tips For Preparation Before Receiving Offers
Anticipating low offers ahead of time can make you feel more in control once they appear. Being ready means you’ll know exactly how to respond without letting frustration take over. Here are a few ways to lay the groundwork before those offers land in your inbox.
Get A Solid Grasp of Your Home's Value
Start by researching the local market and recent sales of similar homes – known as “comps” – to get a clear idea of your home’s value. Understanding what comparable properties have sold for helps you recognize lowball offers and negotiate with confidence.
Tools like PropBox could simplify this process with instant access to market insights, automated comparisons, and AI-powered valuations, giving you the tools to price your home accurately and strategically.
Set A Realistic Asking Price
Set your asking price with solid research and market conditions in mind. Pricing too high can deter buyers or attract lowball offers from those who think you're unrealistic. Listing too low, on the other hand, could mean selling for less than your home’s true value. The goal is to find a fair, justifiable price that draws serious interest.
Consider Market Conditions
A seller’s market where there’s more demand than supply will put you in a stronger position to push for higher offers. In a buyer’s market, though, you might see a wider range of bids, including more daringly low proposals.
Stay updated on the local real estate climate, because this influences how much leverage you’ll have in negotiations. If homes in your area typically sell within a week, you’ll have a stronger hand when countering any lowball attempts.
Factor In Home Improvements
Showcasing recent upgrades like a new roof, updated kitchen, or new windows can help justify your asking price. Keep receipts, warranties, and before-and-after photos to highlight the value. When buyers see the effort put into your home, they’ll be less likely to throw in a low offer, and you’ll have solid grounds to counter with confidence.
How To Recognize A Lowball Offer
Sometimes an offer is so obviously low that you’ll know right away. Other times, it’s a bit trickier to decide if the buyer is simply being cautious or truly offering an outlandish figure. Here are a few telltale signs to help you spot a lowball.
See If It’s Significantly Below Asking Price
One of the simplest ways to recognize a lowball offer is by comparing it directly to your list price. If you priced your home at $300,000 and the offer comes in at $220,000, that’s a pretty big gap.
That said, whether an offer is “significantly” lower can vary by region, property type, and market conditions. Nonetheless, if the difference is substantial, be alert that you might be dealing with a lowball.
Check How It Compares To Market Value
If your home’s market value is right around $295,000, and you get an offer at $240,000, that’s another major clue.
Market value is determined by local conditions, comparable property sales, and factors like your home’s condition or unique features. When an offer veers far below this range – especially if your pricing was well-researched – it’s likely a lowball one.
Compare It With Recent Sales In The Area
Even if your property is listed slightly above comparable homes because of upgrades or a prime location, offers that come in much lower than what similar houses have fetched are a red flag.
Look at recent neighborhood sales and note their prices. If the buyer’s bid is sharply out of line with those figures, you can feel more confident labeling it as a lowball offer and responding accordingly.
How To Initially React To A Lowball Offer (The Right Way)
Finding a disappointing offer in your inbox can be aggravating, but your immediate reaction can either help or harm the situation. Before firing back with a heated response, take a step back and try these strategies.
Avoiding Emotional Responses
Selling a home often carries an emotional weight, especially if you’ve lived in it for a long time.
However, mixing too much emotion into business negotiations can derail progress. If you’re angry or insulted by a low offer, it’s wise to sleep on it rather than send a hasty reply. Take time to breathe, consult market data, and remind yourself that low offers, while annoying, can serve as a starting point for negotiations.
Evaluating The Offer Objectively
Once you’ve taken a moment to cool down, consider the full picture. Does the buyer have mortgage pre-approval or offer a quick closing? A low price might come with perks like a flexible move-out date or fewer repair requests. Evaluating these factors can help you respond with a clear, balanced perspective.
Responding To A Lowball Offer
You’ve kept your emotions in check and decided this is indeed a lowball. Now it’s time to chart your course of action. You can counter, reject, or leave the door open for further talks. Each response has its own potential benefits.
Make A Counteroffer
A counteroffer is often the most common next step. By not rejecting outright, you let the buyer know you’re open to negotiation – but only at a more reasonable figure. Let’s say your home is listed at $300,000, and the offer came in at $220,000. You might choose to counter at $290,000 or $295,000, depending on your flexibility.
Including a polite but direct message in your counteroffer can reinforce that you value your property and have firm reasons for your price. For example, highlight your home’s advantages or how local comps support your numbers.
Reject The Offer Politely
Even if a low offer feels frustrating, it’s best to stay professional and polite. A simple response like, “Thanks for your interest, but this offer doesn’t align with the home’s market value,” keeps things cordial and clear.
Briefly explaining your reasons – such as recent upgrades or comparable sales – can encourage the buyer to reconsider and come back with a better offer.
Keep The Door Open For Negotiation
Sometimes, a buyer just wants to see if you’ll blink first. After you reject or counter their lowball offer, they might come back with something that’s more in your comfort zone. If you’re still open to a deal, signal that you’re willing to continue the conversation.
You could say, “While I can’t accept this figure, I’m happy to discuss terms that better reflect the property’s fair market value.” By striking a balance between firmness and approachability, you leave room for a potential agreement if the buyer adjusts their offer.
When To Reject A Lowball Offer
Not every lowball offer is worth entertaining. Sometimes the gap is so large, or the approach so disrespectful, that walking away is the better choice. Here’s when you might decide to reject a proposal outright.
Disrespectfully Low Offers
If a buyer’s proposal is truly extreme – like 30 or 40 percent below your asking price – then they might not be serious.
They may be testing to see if you’re desperate or fishing for a miraculous bargain. In these cases, you may feel that an immediate, polite rejection is warranted. After all, negotiating from such a low starting point can drain your time and energy, which you could devote to more promising opportunities.
Better Offers Are Available
If you’re fortunate enough to be in a position where multiple buyers are competing for your home, a lowball offer often gets overshadowed.
When another prospective buyer is offering something far closer to your asking price – or even above it – spending too much time on a dramatically low bid doesn’t make sense. In a seller’s market, you have the advantage, and rejecting a meager offer can be a straightforward decision.
Conclusion
Receiving lowball offers can be frustrating, but they’re a reality of selling your home, especially without an agent. Instead of reacting emotionally, take a step back and assess the situation rationally. Is the buyer testing the waters, or do they see value in negotiating? By leaning on market data and understanding your property’s worth, you can craft a response that strengthens your position and keeps the negotiation on track.
PropBox takes further guesswork out of the process, giving you the tools to confidently evaluate and respond to offers. Instantly compare multiple offers, calculate your potential net proceeds, and automate counteroffers tailored to your goals—all in one easy-to-use platform. Try PropBox today and take the stress out of negotiations.