How Should I Respond To A Lowball Offer On My House?
The short answer
Don't ignore it and don't take it personally. Find out what's behind the low price, then counter in writing with the recent sales that support your price, or with terms that work for you. A low first offer is often where a negotiation starts, and a buyer who's still talking can still buy your house.
A low offer on your house can feel like an insult. You’ve lived there, you’ve taken care of it, and someone wants it for far less than you’re asking. The first reaction most sellers have is to say no and move on.
I’d slow down. A low offer is information, and it’s often the start of a negotiation, not the end of one.
Why Do Buyers Make Lowball Offers?
There are a few common reasons:
- They’re testing. Some buyers start low on every house to see how the seller responds.
- They’re working from a different price. An online estimate, a neighbor’s sale from a few years ago, or a home that isn’t like yours. I wrote about why the home value websites disagree.
- They’re expecting the market of years ago. In my experience, some buyers still write offers the way people did after the 2008 crash, well under asking, expecting the seller to take it.
- They see something. A repair, a busy street or a feature they’ll pay to change, and they’ve priced it in.
- They’re at the top of their budget. They love the house and wrote what they could, hoping you’d meet them.
You can’t tell which one it is from the offer alone. That’s why the first step is a phone call.
What Should I Do First When A Low Offer Comes In?
Find out what’s behind it. When an offer comes in, I call the buyer’s agent and the buyer’s lender. I want to know how the buyer arrived at that price, how strong their financing is, and how much they want this house. A buyer with a strong loan who’s stretching to the top of their budget is a different conversation from an investor fishing for a deal.
Then look at your own facts: the recent nearby sales, the homes buyers are comparing yours to, and how many showings and offers you’ve had.
How Do I Counter A Lowball Offer?
In writing, and with reasons. I’d rather send a counter than a rejection, because a counter keeps the buyer talking. Here’s how I’d build it:
- Counter on price with the sales behind it. Show the buyer’s agent the recent sales that support your price. A counter that explains the price gets taken more seriously than one that doesn’t.
- Use the terms, not only the price. Maybe you’d give a little on price for a faster close, fewer contingencies or a rent-back. Maybe you hold firm on price and give on the closing date. The full list of what to compare goes past price.
- Set a deadline. A counter with a clear response time keeps things moving.
I’m not an attorney, and this isn’t legal advice. If you have a question about a counter offer form, a real estate attorney can review it.
Should I Take A Low Offer Personally?
No. I get why it stings, but the buyer isn’t judging your home or your family. They’re making a business decision with their own money, the same way you are. Sellers who answer calmly with facts tend to keep buyers at the table. Sellers who answer with frustration tend to end the conversation, and then there’s nothing left to negotiate.
What If Every Offer Is Low?
Then the offers are telling you something. One low offer is a buyer’s opening move. Several low offers, along with few showings, usually mean buyers don’t see the home as worth the list price compared to the other homes for sale.
In my process, I review showings, feedback and offers with you two weeks after launch. If buyers are consistent about the price, we look at the options together: adjust the price, freshen what buyers keep mentioning, or hold. How the price got set in the first place matters here, and I wrote about how agents decide what to list a house for.
How I Handle Low Offers For My Sellers
This is part of the Offer Negotiation step of The Show-Ready-Seller® System. You get a call when the offer comes in, a plain summary of what’s in it and what I learned from the buyer’s side, my recommendation, and a written counter ready for you to approve. You decide how far to go. My job is to keep the buyer talking long enough to find out if there’s a deal.
Know Your Options Before The Offers Come In
Plan your response to a low offer before you list, not after it arrives. Request the free How To Sell Your Home Guide to see how pricing, marketing and offers fit together, or see a realistic range for what your home could sell for in today’s market with the EPIC® Report. You can request yours here.
Frequently Asked Questions
Should I ignore a lowball offer?
I wouldn't. Ignoring it ends the conversation with a buyer who was interested enough to write an offer. A written counter keeps them talking, and you lose nothing by sending one.
How much should I counter a low offer?
There's no set formula. I'd counter based on what recent nearby sales support and on how much interest the home is getting, not on splitting the difference. The counter should come with the reasons behind it.
Does a lowball offer mean my house is overpriced?
One low offer usually doesn't. Several low offers, along with few showings, can be a sign the price is above what buyers will pay. Look at the showings, the feedback and the recent sales together before you decide.
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This guide comes from what I've learned selling homes in Burbank and the San Fernando Valley since 2015, not from general advice written for every market in the country. It shows you the steps I'd take on your home, so you know what to do before you spend money or sign anything.
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