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

Receiving a significantly undervalued bid for your property can be disheartening. However, before dismissing it outright, it's wise to employ a strategic response. The 2025 housing market has shown some changes, with property values remaining high and interest rates fluctuating around 7%. So, what's the best way for a seller to handle a low offer to still achieve the best possible sale? Let's look at your potential actions.

1. Re-evaluate Current Market Comparables: Before you react, it's crucial to confirm if the offer is genuinely below market value. The real estate market can change quickly, with home valuations shifting in mere weeks. Given that some industry watchers anticipate a 5% increase in prices this spring (2025), verify that your asking price aligns with the latest trends. You should also examine recent sales figures for similar homes in your locale. You might also ask the buyer's agent for the data supporting their offer, as they could be operating with outdated or incorrect information. If you can present them with more relevant and stronger comparable sales, they might be open to adjusting their offer with less need for extensive negotiation.

2. Consider a Counteroffer in Most Situations: After you've re-confirmed your home's market worth, don't be too quick to walk away from the offer. It's generally advisable to present a counteroffer unless it's clear the buyer lacks serious intent. Some buyers make an initial low offer simply to test the waters and see if a bargain is possible. If they are unwilling to negotiate or immediately reject your counterproposal, it's likely they weren't genuinely committed. In the majority of cases, however, making a counteroffer keeps the negotiation alive and moves you closer to your selling objectives.

3. Seek a Compromise with Improved Terms: The sale price isn't the only negotiable element. Some buyers propose low offers due to constraints on their available cash, not necessarily to take unfair advantage. Instead of simply reducing your price, you could request more favorable terms, such as a shorter period for inspections, an agreement allowing you to rent the home back for a time, or fewer contractual contingencies. If the price remains the primary point of contention, offering to contribute to some closing costs or to help buy down the buyer's mortgage interest rate could be a way to bridge the financial gap without greatly diminishing your net profit.

Lowball offers are not pleasant, but they don't automatically signify a failed deal. If you're planning to sell your home this spring and would benefit from skilled advice regarding pricing, negotiation strategies, or understanding current market dynamics, seeking professional guidance can be invaluable in securing the most advantageous outcome.