How to Handle a Lowball Offer when Selling Your Home

28 October 2025

Selling your home is an emotional and financial journey. You’ve put in time, effort, and money to maintain and possibly even upgrade your property. So, when a buyer submits a lowball offer—one that’s significantly below your asking price—it can feel like a slap in the face.

Before you react with frustration or outright rejection, take a step back. A lowball offer doesn’t necessarily mean the buyer is trying to insult you. There are many reasons a buyer might submit a low offer, and how you respond can determine whether you end up closing at a price you’re happy with.

In this guide, we’ll break down exactly how to handle lowball offers in a way that keeps negotiations open and maximizes the value of your home sale.

What Constitutes a Lowball Offer?

A lowball offer is typically anything that’s significantly below your asking price—but the definition can vary depending on the market. If you’re selling in a competitive seller’s market, offers below 90% of your asking price may feel lowball. However, in a buyer’s market, where homes sit for months without offers, lower bids are more common.

A lowball offer can be frustrating, but before dismissing it outright, consider why the buyer might have made that offer. Understanding their motivation can help you turn the situation in your favor.

Why Do Buyers Make Lowball Offers?

There are several reasons why a buyer might submit an offer below your asking price:

1. They’re Testing the Waters

Some buyers want to see the lowest price they might get away with. They may not expect you to accept their initial offer but hope to start negotiations in their favor.

2. They Think Your Home Is Overpriced

If nearby homes have sold for less than your asking price, buyers might believe your home is overpriced and submit a lower offer based on their research.

3. They’re Investors Looking for a Deal

Investors and house flippers often make low offers hoping to buy a property below market value, make renovations, and sell for a profit.

4. They’re Limited by Budget

Sometimes, buyers genuinely love the home but have a strict budget due to loan pre-approvals, financial limitations, or other personal reasons.

5. They Think the Market Favors Them

In a slow market where homes take longer to sell, buyers might assume they have the upper hand and can negotiate a lower price.

Now that you understand why lowball offers happen, let’s talk about how to handle them without losing your cool.

How to Respond to a Lowball Offer

1. Control Your Emotions

Receiving a low offer can feel insulting, but letting emotions dictate your response is a mistake. Buying a home is a business transaction—don’t take it personally.

Instead of reacting with frustration, take a deep breath and evaluate the offer objectively. The worst thing you can do is shut down negotiations too soon.

2. Review the Offer Carefully

Before making any decisions, go through the offer in detail. Look beyond just the price—consider factors like:

- The buyer’s contingencies (home inspection, financing, sale of another property)
- The buyer’s financial strength (are they pre-approved?)
- The proposed closing timeline (a quick closing might be beneficial)

Sometimes, a lower offer with fewer contingencies and a fast closing could work in your favor compared to a higher offer with multiple contingencies.

3. Counteroffer Strategically

Instead of outright rejecting a lowball offer, submit a reasonable counteroffer. This shows the buyer that you're willing to negotiate but won’t accept an unreasonably low price.

- If the offer is way too low, counter with something close to your asking price.
- If the offer is moderately low, you may want to counter somewhere in the middle.

Remember, real estate negotiations often involve some back-and-forth. Even if the buyer started low, they may be willing to increase their bid if they see you’re open to negotiation.

4. Provide Justification for Your Price

If you believe your asking price is fair based on market conditions, provide evidence to support it.

- Share comparable sales ("comps") from similar homes in the area.
- Highlight any recent upgrades or renovations that justify the price.
- If it’s a hot market, remind the buyer that other offers may come in.

Giving the buyer solid reasoning makes it harder for them to justify their low offer.

5. Gauge the Buyer’s Seriousness

Not all lowball offers are worth entertaining. Some buyers are just fishing for a bargain and aren’t serious about negotiating.

Look for signs that the buyer is serious:
- Did they include an earnest money deposit?
- Are they pre-approved for financing?
- Are they asking legitimate questions about the home?

If you think they’re serious but just starting low, keep the conversation going rather than shutting them down.

6. Know When to Walk Away

While negotiation is key, don’t feel pressured to sell below what’s reasonable. If a buyer refuses to budge from an unrealistic price, it’s okay to move on.

Your home is a valuable asset—if you're patient, a better offer may come along.

7. Consider Non-Price Incentives

If the buyer is stuck on price, think outside the box. You might be able to negotiate other favorable terms, such as:

- A quicker closing date
- Waiving contingencies (e.g., skipping inspection)
- The buyer covering more closing costs

Sometimes, small concessions can make a deal more attractive without significantly affecting your bottom line.

How to Prevent Lowball Offers in the First Place

While you can’t completely avoid low offers, some strategies reduce the chances of getting them:

Price Your Home Correctly from the Start

- Overpricing leads buyers to think you're desperate when you drop the price later.
- Work with a real estate agent to find a competitive, market-based listing price.

Make Your Home Move-In Ready

- Small cosmetic upgrades can justify your price.
- Homes that show well tend to attract more competitive offers.

Target the Right Buyers

- Marketing your home to serious buyers (not bargain hunters) increases your chances of receiving fair offers.
- Professional real estate agents know how to attract the right audience.

Create a Sense of Urgency

- If possible, try to have multiple interested buyers at once.
- A well-priced home in a desirable area can generate multiple offers, reducing the chances of lowball bids.

Final Thoughts

Handling a lowball offer gracefully and strategically is key to getting the best deal on your home sale. Instead of taking offense, approach it as an opportunity to negotiate.

- Stay calm and evaluate the offer objectively.
- Keep the conversation going rather than rejecting outright.
- Use facts and market data to justify your price.
- Know when to negotiate and when to walk away.

At the end of the day, selling your home is about securing the best deal possible—and that often means keeping emotions in check while navigating the negotiation process.