When selling a home, you may receive a few lowball offers (offers that are significantly below your asking price). How you respond to these offers depends on how much lower than the listing price they are and how flexible you are with your home’s sales price.
Sometimes, if an offer is very low, such as 20% or more below asking, you might decide not to respond. But it could be worth starting a conversation with a buyer who offered around 10% of the listing price. The buyer may have overlooked a valuable feature in your home or not realized the research that went into setting your listing price.
If you’re unsure how to handle a lowball offer on a house, consider working with an experienced real estate agent. They have ample experience negotiating with buyers and can help you get a good outcome.
If you don't have an agent already, we can connect you with top local realtors who offer full service at half the usual commission rate. Just answer a few questions about your selling situation, and we'll send vetted agent recommendations straight to your inbox.
What is considered a lowball offer on a house?
Generally, anything more than 10% below asking is a lowball offer, and 20% or more below may be too low to consider. Anything in the 5–10% range can be seen as aggressive but fair, especially if your home needs some cosmetic upgrades or repairs. A good offer from a buyer is usually 5% or less below the asking price.
Here are a few examples of what offers could look like on a $600,000 home.
| Offer | Percent below asking | Possible interpretation |
|---|---|---|
| More than $570,000 | Less than 5% | Good |
| $540,000–570,000 | 5–10% | Aggressive but fair |
| $480,000–540,000 | 10–20% | Lowball |
| Less than $480,000 | More than 20% | Not worth responding to |
However, there’s no hard rule for what a lowball offer is. For instance, if there’s high demand in your area or you already have offers above the listing price, you might see anything less than asking as a lowball offer.
Why would a buyer make a lowball offer?
Buyers make lowball offers for all kinds of reasons. Sometimes, they’re just trying their luck or hoping to score a deal. They may like the home, but not love it, so they’re not emotionally invested in the outcome. If you say no, they see it as nothing gained or lost.
Others feel justified in giving a low offer on a house because it needs obvious repairs, or they think it’s overpriced. Asking for less is their way of bringing the home’s selling price closer to fair market value or factoring in repair costs.
Investors, like house flippers or landlords, also tend to give lowball offers on distressed properties or houses requiring significant repairs to maximize profit margins. Investors buying a home with cash may also leverage speedy closings and assurance that financing won’t fall through when making a low offer.
How to respond to a lowball offer on a house
If you want to find out if a buyer is open to negotiating, you can thank them for putting in the offer and explain the reasoning behind the pricing. Ultimately, you want to educate the buyer about the market and your property.
Let’s take a closer look at how to handle lowball offers on a house, depending on the cards you have to play.
Back up your home's value with hard data and your home's key features
If you or your realtor did a comparative market analysis and took inventory of your home’s unique selling points, you may have enough hard data to tell the buyer why your listing price is fair. This could be enough for the buyer to back out if they’re a bargain hunter or move closer to the asking price if they’re serious.
You could say, “We came to this home’s listing price after considering comparable home sales in our neighborhood. We arrived at a higher valuation because of the added value that key features like [x,y,z] bring to the home.”
When showing comparable home sales, include the addresses of the homes, the sold or active listing prices, and the pricing per square foot.
For features, you could discuss the home's curb appeal, updated bathrooms and kitchen, system upgrades, or bonus living spaces like finished basements and attics. Include any attributes that make it stand out from recently sold homes in your area.
This strategy is effective because you’re showing your home’s listing price was a calculated decision and not based on an emotional attachment to it. You did your homework, and now the buyer has to do theirs to back up their lowball offer or decide to offer more.
Leverage other offers or high buyer interest
If you’ve already received other offers on your home, you can use it as proof that the property is worth what you’re asking, or at least more than what the buyer offered.
Giving specific offer details isn’t always to your advantage, so you can keep it vague by saying, “We’re in a multiple offer situation, so please submit your best,” or, “We currently have a higher offer, please consider the best offer you can submit.”
If you’ve had a lot of interest or showings, you can use that as leverage in the negotiation. Kindly explain to the buyer that the home has been popular and that you expect a higher offer soon.
These moves are effective because they flip the script. Instead of your listing price being the issue, the buyer's offer is the problem because others have offered more. Even if you don’t yet have another offer, having many people ask about the home or request showings can serve as social proof that your price is fair. If it weren’t, you wouldn’t have as much buyer interest.
Offer concessions
If you want to sell the home fast but don’t want to slash the listing price, you can consider offering seller credits. In this case, you’d bring the purchase price up to a reasonable level, such as $590,000 on a $600,000 home. Then offer $5,000–10,000 toward the buyer’s closing costs.
If you’re very motivated to sell, you could add other concessions to sweeten the deal, such as:
- Covering the home and termite inspection fees
- Paying for home warranty coverage
- Offering a repair credit
- Including appliances (washer, dryer) or furniture (patio furniture, wall-mounted television)
The quicker you want to sell, the more concessions you can consider. This makes buyers feel like they’re getting a deal.
Reject the offer
You don’t have to accept or entertain a lowball offer if you don’t want to. In fact, negotiating a home sale may not be to your advantage. If your area has more demand than supply, it’s a seller’s market. You have the upper hand; a higher offer might be around the corner.
Sticking to your asking price can also show you know your home’s value. You can avoid going back and forth with buyers who are less invested in the property and less likely to close. Buyers with a lowball offer on a house could just be wasting your time. A firm rejection helps weed them out. Serious buyers may realize they overshot and come back to you with something more reasonable.
An experienced realtor can get you the best price
Finding a local real estate agent to sell your home significantly increases your chances of selling at a higher price.
Experienced listing agents will make sure your home is priced right. They’ll take note of your home’s unique selling points and do all the market research before coming to you with a suggested listing price. From there, you’ll work together to find a number you’re comfortable with to list your home.
Top realtors are also skilled negotiators and know how to get the best price once the offers come rolling in. If you aren’t sure how to handle lowball offers on a house, don’t fret. They’ll talk with buyers on your behalf, advocating for your home courteously and professionally.
Quality agents will know how to leverage your home’s location, features, comparable sales, offers, and more to make sure your home sells for its highest value.
FAQ
What does 'lowball offer' mean?
A lowball offer is a buyer offer that’s significantly below the home’s asking price.
How low is too low to offer on a house?
Generally, 20% or more is seen as offensive unless the home is a distressed property or a true fixer-upper.
Should I ignore lowball offers?
Ignoring lowball offers might make sense if the market is in your favor, you’ve had a lot of interest in and showings for your home, or you don’t need to move immediately. But if you need to sell quickly or know the property requires a lot of work, entertaining lowball offers could be beneficial.
How do you politely decline a lowball offer?
Your real estate agent can craft a polite response and send it on your behalf. If you’re selling the home yourself, you can say, “I appreciate your interest and your offer. After careful consideration, I’ve decided not to move forward with it. I believe it’s significantly below the home’s fair market value.” Then you can close by saying you’re open to a more competitive offer.
How do you counter a low offer on a house?
Hard data is one of the most effective ways to counter a low offer on a house. This means using comparable home sales in your neighborhood, stating valuable home features, and mentioning high buyer interest and showings. This shows that your home is more valuable than what the buyer is offering.
