<h2What Is a Lowball Offer?</h2<pA lowball offer is any offer that comes in significantly below your asking price — typically 10 percent or more below list price.
Lowball offers are frustrating, but they are a normal part of the FSBO selling process.
Buyers test sellers, particularly FSBO sellers who they may perceive as more motivated or less experienced than agent-represented sellers.
How you respond to a lowball offer can determine whether you ultimately close the deal or walk away from a buyer who had the potential to pay a fair price.</p<h2Do Not Take It Personally</h2<pThe first rule of handling lowball offers is to separate your emotions from the transaction.
Your home has personal meaning to you, but to a buyer, it is a financial transaction.
A low offer is not an insult — it is an opening position in a negotiation.
Sellers who respond emotionally (by refusing to counter or by countering with the full asking price out of spite) often lose deals that could have been salvaged with a measured response.</p<h2Always Counter</h2<pUnless an offer is so low that it is clearly not made in good faith (for example, an offer of $150,000 on a $350,000 home), always respond with a counter-offer.
A counter-offer keeps the negotiation alive and signals that you are willing to work toward a deal.
Your counter does not need to be a large concession — even a modest reduction from your asking price demonstrates good faith and invites the buyer to move closer to your number.</p<h2Use Data to Support Your Counter</h2<pWhen you counter a lowball offer, include a brief explanation of your pricing rationale.
Reference the comparable sales you used to determine your asking price.
"Based on three comparable sales in the neighborhood in the past 60 days that sold between $295,000 and $310,000, we are countering at $298,000" is far more persuasive than simply stating a number.
Buyers who understand the market data are more likely to move their offer up to a realistic level.</p<h2Look Beyond the Price</h2<pSometimes a lower offer comes with favorable terms that partially compensate for the lower price.
A cash offer with no financing contingency and a 21-day closing is worth more than a higher offer with a financing contingency and a 60-day closing.
An offer with a large earnest money deposit signals a committed buyer.
Evaluate the entire offer, not just the price, before deciding how to respond.</p<h2Know Your Walk-Away Number</h2<pBefore you list your home, determine your minimum acceptable net proceeds — the number below which you will not sell.
This is your walk-away number.
Having this number clearly in mind before negotiations begin prevents you from making emotional decisions under pressure.
If a buyer's final offer falls below your walk-away number after multiple rounds of negotiation, it is appropriate to decline and continue marketing your home.</p