After an open house or a showing, you may anxiously wait for offers to come in. When you get the news from your agent that you’ve received an offer, it can be hard to contain your excitement. Then, when you see that it’s a lowball offer, your enthusiasm can quickly turn to frustration or outright anger.
Receiving a lowball offer is disappointing, but it is absolutely possible to bounce back. With some negotiating, you could even turn the offer into a winning deal. Here are seven steps for handling a lowball offer without losing your cool:
1. Take a Breath
It’s natural to feel offended at a lowball offer. You know what your home is worth, and you’ve put a lot of effort into preparing it for the market. When someone offers well below asking, you may feel that they’re wasting your time or that they think they can take advantage of you.
Allow yourself time to process these thoughts before you respond to the offer. Responding impulsively while you’re upset could result in you burning a bridge with the buyer and missing out on an opportunity. Vent to your real estate agent and take some time to decompress. Then, you can approach the offer with a clearer head.
2. Analyze the Offer
Once you’re ready to dig into the offer, read it thoroughly and consider more than the offer price. While price may be the most important factor, it’s not the only part of the offer that matters. The buyer might be offering other concessions that make their bid more appealing.
For instance, a lower offer with a waived home inspection contingency may be preferable over a higher offer that requires a home inspection. Some sellers would also accept a lower cash offer over a higher financed offer because the deal is less likely to fall through. If you need to close by a specific date, a lowball offer with a fast closing could also be appealing.
You and your agent should also discuss whether the asking price for your home is too high. If you get multiple offers under asking, the listing price may be unrealistic. This doesn’t mean that you have to accept a wildly low offer, but you should remain flexible and open to offers that may not fully align with your original expectations.
3. Learn About the Buyer’s Situation
Sometimes, discovering more about a buyer’s situation can make their offer seem more or less appealing. For instance, if you learn that the buyer has to move out of their current home soon and has a fast-approaching deadline for securing housing, they may be more open to negotiating. On the other hand, if you learn that the buyer hasn’t secured financing yet, the deal could be riskier and less worthy of pursuing.
Your agent may not be able to parse out many details about the buyer’s situation, but they can try their best to gather information. Any insights you can gain into the buyer’s circumstances can give you more negotiating power.
4. Justify Your Counteroffer
A buyer who makes a lowball offer probably expects that you’ll give them a counteroffer. If you like some of the terms in the initial offer, it’s probably worth negotiating with the buyer. You and your agent should work together to create a counteroffer that will satisfy both parties.
Your counteroffer price should be somewhere between your listing price and the buyer’s offer to show them that you’re flexible and willing to negotiate. However, you should also leave room for further negotiations. Consider negotiating over other terms and contingencies, too. For instance, you could ask the buyer to waive the home inspection in exchange for a lower sale price, or you could offer to pay some of their closing costs in exchange for a higher price.
In your counteroffer, you and your agent can share your pricing strategy and explain why your home is worth your asking price. You could include records of recently sold houses in your neighborhood that confirm your property’s value, and you can highlight any improvements you’ve made to the property.
5. Leverage Other Offers
If you’ve received multiple offers for your home, leveraging them to get the best possible deal is an excellent strategy. For instance, you might like the terms and contingencies included in a lowball offer, but you want to get a higher price. If you have a better offer, you can present that information to the lowball buyer to encourage them to make a better bid.
6. Set a Deadline
Being flexible is key when negotiating on a home sale, but that doesn’t mean you need to wait forever to agree on a deal with a prospective buyer. If the buyer is serious about their offer, they should respond to your counteroffer in a timely manner.
Consider including a deadline in your counteroffer. Not only does this prevent the negotiations from being dragged out for too long, but it also creates a sense of urgency for the buyer that could drive a better deal. A deadline of 24 to 48 hours is typical for negotiating counteroffers.
7. Know When to Walk Away
As frustrating as it can be for a deal to fall through, you should be prepared to walk away from the negotiations at any time. If you’re too attached to the deal or feel desperate to sell your home, you lose all of your negotiating power. Unless you urgently need to sell your house as soon as possible, remember that you can walk away at any time and for any reason.
If the buyer offers well below market value and refuses to budge on the price, it may be best to end the negotiations and reject their offer. You could also walk away if the buyer and their agent aren’t timely in their communication. Listen to your gut, and always talk through your thoughts and concerns with your agent. They’re here to support you, and their expertise can help guide your decisions.
Handle Lowball Offers With Ease
No one wants to get a lowball offer, but receiving one doesn’t mean that your home sale will be a disaster. Use the original offer as a springboard for negotiations. Keep what you like about the offer, and suggest a higher price with the reasoning to back it up. If you and the buyer are both negotiating in good faith, you could come to a satisfactory agreement.
If the buyer isn’t willing to work with you, try to let the offer go without taking it personally. Stay patient, and wait for the right offer to come along. A lowball offer can be discouraging, but the perfect buyer for your home is out there. As long as you keep an open mind, you’ll find success with your home sale.
