They Offered What?! The Smart Seller’s Guide to Handling Lowball Offers

Getting an offer on your home is exciting — until you see the number. A buyer just came in way below asking, and your first thought might be, “Are they serious?”

Take a breath. Lowball offers can be frustrating, but they’re not always a dead end. How you respond, and whether you should respond at all, depends on the type of market you’re in and what your goals are as a seller.

Let’s break it down.

What Counts as a “Lowball” Offer?

A lowball offer is one that’s significantly below your asking price or the home’s fair market value, often 10% or more under list.

Sometimes buyers do this to test your motivation or to leave room for negotiation. Other times, they may truly believe that’s the home’s value based on outdated comps or misinformation.

Either way, how you respond can set the tone for the entire negotiation process.

First, Step Back and Assess

Before reacting emotionally, look at the facts:

• Has your home been on the market a while? The longer a home sits, the more buyers assume you’ll be flexible.

• How does your list price compare to recent sales? If you’re priced above similar homes, the offer might reflect current reality.

• Are there other offers or strong interest? Competition changes everything.

A calm, strategic review, ideally with your Realtor’s input, will tell you whether this is an insult, an opportunity, or just a starting point.

In a Seller’s Market: You Have the Leverage

In a seller’s market, demand is high, inventory is low, and well-priced homes move quickly — often with multiple offers.

If you get a lowball offer in this environment:

• Don’t take it personally. Some buyers just test the waters.

• Counter, don’t cave. A strong counteroffer sends a clear message that you know your home’s worth.

• Use leverage. Mention (through your agent) that there’s plenty of interest. You might see that buyer suddenly raise their price.

• Be patient. In a hot market, the right buyer often comes along soon after.

Pro Tip: A firm but respectful counteroffer, say, only dropping a few thousand or adjusting terms instead of price, shows confidence without shutting the door completely.

In a Buyer’s Market: Strategy Over Emotion

In a buyer’s market, there’s more inventory and fewer buyers, meaning they have options, and sellers need to stay flexible.

If you get a lowball offer here:

• Stay open to negotiation. The first offer might be low, but it’s often just the beginning.

• Find out the “why.” Is the buyer concerned about condition, upgrades, or market uncertainty? Understanding their reasoning gives you room to negotiate strategically.

• Consider concessions that don’t cost much. Covering some closing costs or offering a home warranty might bridge the gap without dropping price dramatically.

• Don’t reject right away. Even a weak first offer shows interest, and interest is valuable when buyers have choices.

Pro Tip: Ask your Realtor to “counter high, but fair.” For example, if a buyer offers $25,000 under list, respond at $10,000 below. It keeps them engaged and signals your seriousness.

Understand the Psychology Behind the Offer

Not every lowball is malicious, sometimes, it’s a tactic. Buyers might:

• Hope to find a desperate seller.

• Anchor negotiations with a low starting point.

• Be under budget constraints.

• Simply misunderstand market value.

Your Realtor’s job is to filter emotion from strategy. Sometimes the best move is to counter firmly. Other times, it’s better to wait for a stronger offer to surface.

When to Walk Away

It’s okay to not engage if:

• The offer is far below what’s reasonable (think 20%+ under).

• The buyer refuses to budge after a good-faith counter.

• The terms are unrealistic or risky (like no financing preapproval).

Walking away doesn’t mean you’ve lost. It means you’re protecting your equity and leaving the door open for a more serious buyer.

Turn It Into an Opportunity

Believe it or not, lowball offers can be valuable. They can:

• Reveal where buyers perceive your home’s value to be.

• Give you a chance to reinforce the property’s unique benefits.

• Provide leverage in future negotiations (“We’ve already had offers near this range…”).

Even if you don’t accept, the conversation gives you insight that helps guide your next move.

The Bottom Line

Lowball offers are part of the real estate game, and how you handle them depends on market conditions, motivation, and strategy.

• In a seller’s market, confidence wins. Don’t chase; counter smartly and hold your ground.

• In a buyer’s market, flexibility and communication can turn a weak start into a strong finish.

Either way, your Realtor’s experience makes the difference between feeling insulted and walking away with the best possible deal.

Final Thought

Selling your home is emotional, but negotiation is business. When a lowball hits your inbox, remember: it’s not personal, it’s positioning. And with the right strategy, you can turn even a low offer into a successful sale.           ClickHERE to connect!