Dealing with Lowball Offers: Strategies to Maintain Your Composure and Secure a Fair Deal

Selling your home is an emotional and financial journey, and nothing tests your patience quite like a lowball offer. You’ve put time, effort, and possibly a lot of money into your home, so receiving an offer well below your asking price can feel like an insult. But before you dismiss the offer outright (or fire off an angry response), here’s how to handle lowball offers with professionalism and strategy.

Keep Your Cool and Stay Rational

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.

Assess the Offer Thoroughly

Not every lowball offer is the same. Take a moment to fully evaluate the offer before deciding your next step. Ask yourself:

• How far below your asking price is it? A 10% under-asking offer is very different from a 30% one.
• Are there any contingencies that make the offer less attractive? Does the buyer require extensive repairs or financing conditions that could complicate things?
• Is the buyer pre-approved and serious about purchasing? A low offer from a financially strong, motivated buyer might be worth considering.
• Are there favorable terms that offset the low price? For example, is the buyer offering a quick closing, fewer contingencies, or an all-cash deal?

A careful evaluation will help you determine whether it's worth pursuing or moving on.

Offer a Counterproposal

Instead of flat-out rejecting a low offer, respond with a counteroffer that is closer to your listing price or reflects fair market value. Most buyers expect some negotiation, and countering rather than dismissing shows you are willing to work with them within reason.

Back Up Your Price with Data

A strong way to respond to a low offer is to support your asking price with facts and figures. Provide recent comparable sales in Los Angeles County and the surrounding areas that justify your price, demonstrating your home's value. Highlight any unique features such as recent upgrades, a larger lot, or a prime location to reinforce your pricing.

Understand the Buyer’s Motivation

Knowing the buyer's motivations 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 looking for a bargain?
• Have they made multiple offers on other properties?
• Do they need to move quickly due to job relocation or lease expiration?

Gaining this information helps you tailor your response and put yourself in a stronger position.

Consider Non-Monetary Negotiation Points

If the buyer is reluctant to raise the price substantially, there may be other ways to make the deal more appealing. Instead of focusing only on the price, consider what else they can offer, such as:

• Faster closing timeline – If you need to sell quickly, a buyer who can close in 15-30 days might be appealing.
• Leaseback option – If you need extra time to move, the buyer might allow you to rent the home back temporarily.
• Minimal or waived contingencies – Buyers who are willing to waive financing, inspection, or appraisal contingencies reduce the risk of delays or deal cancellations.
• Covering seller costs – Some buyers may be open to covering items like title insurance, escrow fees, or HOA transfer fees, reducing your out-of-pocket expenses.
• Flexible moving terms – A buyer who can accommodate your ideal move-out date can save you stress and additional costs.

These terms can be as valuable as a higher offer, depending on your situation. Be open to creative solutions that can make the deal work for you.

Know When to Walk

It's never pleasant to receive low offers on your property, but sometimes they can provide you with some insight. Is your asking price too high? Your real estate agent can help you assess your price against current market conditions to decide whether to accept, wait for better offers, or make necessary price adjustments. However, if an offer is truly unreasonable and the buyer refuses to negotiate, it's advisable to move on. The right buyer will come along, someone who sees the true value of your home.

Partner with a Skilled Real Estate Agent

Having a strong real estate agent on your side is crucial for handling lowball offers effectively. They can provide market insights, negotiate on your behalf, and ensure the transaction remains professional. Experienced agents understand buyer psychology and can craft counteroffers that maximize your chances of securing a favorable deal. An expert in your corner ensures that you make informed decisions throughout the selling process.

Final Thoughts

Receiving a lowball offer doesn’t mean your home lacks value—it simply means the right buyer hasn't shown up yet. By staying calm, keeping negotiations open, and leaning on your real estate agent's expertise, you can manage these offers with confidence and ultimately 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—with minimal stress.