The Best Way to Respond to a Lowball Offer

By Dave Knight

Dave Knight, our Specialist, started his career in real estate back in 2007 and quickly became a top-producing Agent at Keller Williams.

Lowball offers are a common part of the real estate process, but receiving an offer far below your asking price can be frustrating. You might find yourself asking, “Are they serious?” or “What should I do next?” Instead of getting upset, it’s important to approach lowball offers with a strategic mindset.

Lowball offers are often used as a negotiation tactic. The buyer is looking for a good deal, and the seller wants the best price possible. It’s a typical part of the back-and-forth in real estate transactions. A lowball offer doesn’t necessarily mean the buyer doesn’t value your property; it might simply be a starting point for negotiation.

Here are the best ways to handle them while keeping control of the situation.

1. Understand the offer. The first thing to do when you receive a lowball offer is to take a moment and assess the situation. Instead of reacting right away, try to understand where the offer is coming from. Is the buyer trying to negotiate the best price, or do they not fully understand the market?

In some cases, the buyer may be testing your flexibility on price. In other cases, they may simply be unaware of your property’s true value. By understanding the motivations behind the offer, you can determine your next steps more effectively.

It’s important to remember that this is business, not personal. Once you understand why the offer is low, you’ll be in a better position to respond thoughtfully.

2. Stay calm and collected. Maintaining composure is crucial in any real estate transaction. Showing desperation to sell or being too eager to accept an offer can weaken your stance. Staying calm shows the other party that you’re composed and in control, which is an advantage in any negotiation.

3. Counter with confidence. When you receive a lowball offer, it’s important to respond with a fair counteroffer that reflects your expectations. You need to remain firm but reasonable.

Communicate the true value of your property by highlighting key features like location, recent improvements, or market demand. Supporting your counteroffer with facts, such as recent comparable sales in the area, will strengthen your position.

For example, if a buyer offers $20,000 less than your asking price, don’t simply dismiss it. A more effective response would be: “I appreciate your offer, but based on recent sales in the area and the condition of the home, I believe the list price accurately reflects the true value of the property.” This shows that you’re open to negotiation but also clear on the value of your property.

4. Know when to walk away. If the offer is too far below your bottom line, it may not be worth your time to continue negotiations. Walking away isn’t a sign of failure: it’s a demonstration of your confidence in your price. If you stand firm, the buyer may return with a better offer. If they don’t, it might just be a sign that the deal isn’t right for you.

Knowing your limits is key in these situations. If the offer doesn’t align with your goals, it’s okay to decline and move on. Holding out for the right offer is perfectly fine.

Handling lowball offers comes down to understanding the offer, staying calm, responding with confidence, and knowing when to walk away. The important thing to remember is that negotiations are a natural part of the real estate process, and you don’t have to accept the first offer you receive.

If you have any questions or need help with your real estate plans, I’d be happy to help. Contact me today to discuss your specific situation and get tailored advice for your home sale or purchase. You call or text 626-408-2890 or email daveknight@kw.com to book a free, no-obligation consultation. I’m here to help.