REAL ESTATE TIPS: How to Handle Lowball Offers. A Guide For Sellers & Buyers.
Lowball Offers: The Right Way to Approach Them (For Sellers & Buyers)
A lowball offer—when a buyer submits an offer well below the asking price—can spark strong reactions on both sides. For sellers, it may feel insulting. For buyers, it can be a strategic move. But how you handle it makes all the difference.
This guide breaks down how sellers can respond wisely and how buyers can make low offers that actually work.
For Sellers: How to Handle a Lowball Offer Without Losing the Sale.
1. Stay Calm & Assess the Offer
Before reacting, take a step back and evaluate:
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Market Conditions – Is it a buyer’s or seller’s market?
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Recent Sales – Are comparable homes selling close to your asking price?
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Buyer’s Intentions – Is the buyer serious or just bargain-hunting?
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Other Interest – Do you have multiple offers or showings lined up?
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A low offer isn’t always a bad sign—it’s often a starting point for negotiation.
2. Counteroffer with Purpose
Rejecting a low offer outright can shut down a potential deal. Instead, consider a counteroffer that:
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Moves the price closer to market value but leaves room for negotiation.
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Adjusts terms like closing dates or contingencies to make the deal more appealing.
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Includes supporting data, such as recent comparable sales, to justify your price.
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Some buyers start low but are willing to increase their offer when they see the value.
3. Use Market Data to Strengthen Your Position
If homes in your area are selling at or near asking price, share those numbers with the buyer. A strong response includes:
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Comparable sales reports showing fair market value.
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Details on your home’s unique features that justify the price.
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Local trends, such as low inventory, which can push prices up.
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This helps the buyer understand why their offer is too low.
4. Know When to Hold Firm or Walk Away
If you’re receiving strong interest from other buyers or are in a competitive market, you don’t have to entertain low offers. Consider rejecting the offer outright if:
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The buyer refuses to negotiate reasonably.
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You have other interested buyers.
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The market supports your price.
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However, if your home has been on the market for a while and offers are scarce, you may want to work with the buyer to find middle ground.
For Buyers: How to Make a Low Offer That Gets Accepted
1. Do Your Homework Before Making a Low Offer
Not all lowball offers are dismissed—if you approach it strategically, you can negotiate a great deal. Before submitting your offer:
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Research recent sales – What have similar homes sold for?
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Understand market conditions – If it’s a seller’s market, a low offer is less likely to be accepted.
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Know the seller’s situation – Are they highly motivated to sell? If so, they may be open to negotiation.
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A well-researched low offer has a much higher chance of being taken seriously.
2. Justify Your Offer with Data
Instead of simply throwing out a low number, explain why you’re offering less:
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Comparable Sales: “Similar homes have sold for $X, which is why I’m offering this amount.”
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Condition of the Home: If the home needs repairs, provide estimates to justify a lower price.
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Market Trends: If homes in the area are sitting on the market, sellers may be more open to negotiation.
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Sellers are more likely to respond positively when they see the logic behind your offer.
3. Sweeten the Deal with Strong Terms
Even if your offer is lower than the asking price, making the deal easier for the seller can improve your chances:
✔ All-cash or pre-approved financing – Sellers prefer a sure thing.
✔ Fewer contingencies – Removing unnecessary conditions can make your offer more attractive.
✔ Flexible closing date – If the seller needs time to move, flexibility can work in your favor.
A low offer with strong terms may be more appealing than a higher offer with complications.
4. Be Prepared to Negotiate
Sellers rarely accept the first offer, especially if it’s low. Expect a counteroffer and be ready to:
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Increase your price slightly to show good faith.
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Negotiate terms such as closing costs or repairs.
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Walk away if necessary – If the seller isn’t budging and the home is overpriced, it may not be the right deal.
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A good negotiation is about finding common ground, not winning or losing.
Final Thoughts: Making Low Offers Work for Both Sides
Lowball offers don’t have to end in frustration. When handled strategically:
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Sellers can turn a low offer into a fair deal by countering wisely and using market data.
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Buyers can get a great deal by justifying their offer and structuring it attractively.
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Work with an Experienced Negotiator.
Whether you’re selling and want to handle lowball offers effectively or buying and want to make a strong offer that works, having the right strategy is key.
With years of experience in real estate negotiations, I know how to structure offers that get results. If you’re thinking about buying or selling and want expert guidance, let’s talk about the best approach for you.
📞 Contact me today at 626-825-5599 or h.defazio@compass.com to discuss your real estate goals.
