Lowball offers can be frustrating, but a smart response strategy can help protect your sale and lead to real negotiations.
Lowball offers are starting to appear again in the Northwest Ohio real estate market. For the past four years, they were almost unheard of, but as the market shifts, sellers are beginning to encounter them more frequently. If this happens to you, it is important to know how to respond. Here’s how:
1. Don’t be upset. A buyer submitted an offer on your property, which means they chose your home. They may not know your circumstances, your motivation, or how you priced your property. Some buyers routinely make low offers as a strategy. Instead of reacting emotionally, take a step back and recognize that an offer means interest.
“Rechecking comparable sales in your area can help determine if an offer is truly low.”
2. Recheck market comps. Recheck the market comparables before responding. Markets can shift quickly, and values may change within weeks. While some experts predict modest increases in home prices this year, your home’s value may vary depending on its features and location. Review the most recent comparable sales in your neighborhood to confirm that your pricing is still aligned with the market. It is also important to ask the buyer’s agent how they determined their offer. They may be misinformed, or they may be using outdated or inaccurate data. In many cases, providing better comps can help bring the buyer’s offer closer to your expectations.
3. Always counteroffer. Once you confirm your home’s value, it is often worth countering rather than walking away. Most buyers expect some negotiation and may start low just to see what response they receive. If they are not willing to negotiate or decline your counter immediately, they are likely not serious to begin with. However, continuing the conversation with a reasonable counteroffer may lead to an acceptable agreement.
4. Establish mutually beneficial terms. A buyer may submit a low offer because they are short on cash or credit. Instead of reducing your price, you could negotiate for better terms such as a shorter inspection period, fewer contingencies, additional earnest money, or even a rent-back agreement. These terms can provide as much value as a higher offer.
Lowball offers are not ideal, but they do not have to end the deal. If you are selling this season and want expert advice on pricing, negotiations, or local trends, I am here to help. You can call me at 419-466-SOLD or send an email to jon@modene.com. I look forward to hearing from you.
