How to Handle a Lowball Offer

Unfortunately, the days of expecting multiple offers above the list price sit firmly in the rearview mirror for most Inland Empire home sellers. Even so, it feels pretty exciting to get an offer for your property. However, that excitement may quickly change to dread when you realize that you just received a lowball offer. But before you turn that buyer down flat, find out the best way to handle this situation. You may still turn it into a sale you can be happy with after all.

How to Handle a Lowball Offer

Keep Your Emotions in Check

First of all, it’s understandable that you may feel insulted about the low offer price. After all, you put your blood, sweat, and tears into making this house a home. Nevertheless, you should not respond in anger or disgust. The buyer may have received bad advice or simply come from another area where submitting an extremely low offer on homes tends to be the norm.

Counter That Offer

Instead of getting angry, consider that lowball offer as more of a starting point for negotiations. Just because the offer came in much lower than you expected does not mean that you must accept it. Counter their offer with one of your own.

Counteroffer Options

Your REALTOR® should be able to help you draft a good counteroffer. Sometimes, dropping your price by 3-5% may be enough to make a deal happen. Other times, you might receive a counteroffer to your counteroffer. At that time, you might want to consider thinking about other things to sweeten the pot. For example, change the timeframe of escrow. Change it from 30 days to 45 days or vice versa depending on the buyer’s needs. Or accept their lower counteroffer but only if they agree to decrease the number of contingencies they put in place. Also, asking for a higher earnest money deposit or requiring a higher down payment helps insure that the buyer is serious about this sale as well. Talk over your options with your real estate agent first.

Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty