How To Handle Lowball Offers

By Jamie Reece

20+ years as Principle & Managing Broker, proud UW Business grad, loves competition & negotiating hard, achieving client’s goals thru statistical & opportunity analysis. Can be found sailing, biking, volunteering, or hanging with family when not actively engaged in creating a spreadsheet.

With interest rates hovering around 7%, many areas in our region remain strong seller’s markets. However, some areas are showing weakness, with as many as 40 to 50% of homes selling below the list price. How do you handle a low offer from a buyer? Here are some strategies for clients dealing with low offers to achieve a successful outcome in selling their homes.

First, we analyze market and listing data. Engage with the buyer and their broker to understand the rationale behind their offer. This discussion often provides valuable insights, such as affordability constraints or specific needs regarding closing costs and down payments, which in turn gives us advantage in negotiations.

With over 24 years of experience, we’ve learned that regardless of market conditions, the first week on the market typically favors sellers. In today’s low inventory market, where inventory lasts about a month, buyers may develop skewed perceptions of pricing after a week or so.

If your listing remains unsold after 7 to 10 days, you might encounter a lowball offer. Here is how to evaluate and respond to such offers to secure the best outcome for your sale:

The first point to remember is not to take a low offer personally, though it may feel that way initially. For buyers, it’s often purely a business decision to secure the best deal, just as you might if you were in their position. Therefore, we shift our focus to the business aspects of the transaction.

We analyze two key sets of data: market feedback during the listing period and broader market trends since listing. This helps us gauge the likelihood of alternative offers and guides our negotiation strategy with the current buyer.

In nearly all cases, we recommend making a counteroffer, according to terms that align with your goals. Supporting this counteroffer with data-backed justifications increases its chances of acceptance, transitioning the negotiation from an emotional plea to a rational discussion about value and terms.

Receiving a low offer can be discouraging, but our experience shows that these situations often lead to successful outcomes when approached strategically and based on market insights. We’re here to guide you through this process, ensuring you achieve your desired outcome. Feel free to call or email with any questions or to discuss how we can assist you in achieving a successful negotiation strategy for your sale.