How Should You Respond to a Lowball Offer on Your Home?

A low offer can feel personal when you have put years of work into your home. Before responding, give yourself room to look at the proposal as a business decision. The goal is to decide whether a conversation with this buyer serves your plans.

Start with current comparable sales

Ask your agent to review recent sales of similar homes, the condition of your property and the competition buyers can choose from now. A listing in Bowie may need a different comparison set from a home in Upper Marlboro, even when their asking prices look similar.

Compare the offer with that evidence and your priorities. An asking price is a starting point for a conversation, not proof of what a buyer will pay.

Read the whole offer

Put the price beside the proposed terms. Review these questions with your agent:

• What information supports the buyer’s ability to complete the purchase?
• What conditions and deadlines are included?
• Does the proposed closing date work with your next move?
• What seller-paid costs are requested, and how would they affect your estimated proceeds?

A cash label or a higher headline price does not answer all of those questions. Ask for a written comparison of the offers you are actually considering.

Choose whether to counter, accept or decline

A counteroffer can open a conversation, but it is not the right response to every offer. Decide which terms you could consider changing and which you need to protect. Avoid guessing that a buyer is either unserious or unable to pay more based only on an opening number.

If you explore a credit, a different closing date or another change, ask the appropriate professionals to explain the costs, contract language and any financing restrictions before you agree. A concession has a cost; compare your estimated proceeds again.

Keep the response focused

You can explain your position using relevant sales and the terms you need without criticizing the buyer. Negotiation may produce an agreement, or it may show that this offer does not fit your plans. Neither outcome requires a promise about future prices or a prediction about the next buyer.

Plan your next step

Explore the TaylorMade Team’s seller services for help preparing a pricing and offer-review plan across Maryland, Washington, D.C., and Northern Virginia.