Articles and Advice

Fielding A Lowball Offer

Think a buyer's offer is way too low? Here's how to assess lowball offers.

When you're trying to sell your home, receiving a lowball offer is the last thing you want to happen, and it's certainly disheartening. Preparing yourself for the possibility of a lowball offer and having a strategy in place to deal with it can make the situation much less stressful. Use these tips to help you plan what you'll do if you receive an offer that's not up to your expectations.

Don't Overreact
Your home means a lot to you, and you certainly hope that potential buyers will see its worth. However, if you receive a lowball offer, the last thing you should do is let your emotions take control. It's good to keep in mind that despite the sentimental value your home holds for you, a real estate transaction is an investment. The prospective buyer may be simply to snag a bargain, albeit at your expense. Don't refuse an offer immediately until you've had time to consider your other options.
Counter Offer
If you've received a lowball offer, especially if it's the only offer, let the buyer know you are willing to show some flexibility by writing up a counteroffer. Many prospective buyers will start with a much lower offer than they are actually willing to pay, and a bit of negotiating is likely expected. If you feel like you need advice on making the counteroffer, your agent will be able to guide you through the process.
Have a Second Look at Comps
Double-check comparable homes to be sure your selling price is in line with the current market, especially if the market is changing. Be willing to have a look at comps provided by the prospective buyer as well if they are basing their offer on such data. This is also a good time to review other information you factored into your asking price such as a home appraisal.
Your Motivation Versus Buyer Motivation
If your only offer is a lowball offer, and you need to sell right away, you may choose to accept the offer to expedite the sale. You might consider asking the buyer why their offer is so low. If the buyer is serious about your home, they might be open with you about their reasoning. They may be at the top of their budget and hoping that you will lower your price or they might see an aspect of your home that in their eyes needs repair. Honest and clear communication typically makes a negotiation smoother.
Your Right to Refuse
There's no rule saying you have to accept any offer made on your home, let alone a lowball offer. If you're confident in how you've priced your home, you can always ignore or refuse an offer that is too far below your asking price.

Ultimately, you will make the decision of which offer to accept on your home, but having a strategy in place to handle lowball offers is important as you list your home for sale.

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Fielding A Lowball Offer

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