What You Need to Know About Lowball Offers
When selling your home, it’s natural to want the best price possible. After all, this is one of the biggest financial decisions you’ll ever make. However, one thing you might come across during the process is a lowball offer. If you’re not familiar with the term, a lowball offer is an offer from a potential buyer that is significantly lower than what you are asking for your property. But what should you do when this happens?
In this blog, we’ll discuss lowball offers, what they mean, and how to handle them, especially when you’re looking at properties like South Hudson Houses for Sale or Southern NH Houses for Sale. Whether you’re a first-time seller or have experience in real estate, understanding lowball offers is important for getting the best deal. Let’s get real about the deal!
What is a Lowball Offer?
A lowball offer is simply an offer that’s lower than what you expect or what is considered fair market value for your home. For example, if your home is listed for $350,000 and a buyer offers $270,000, that’s a lowball offer. The buyer may have their reasons—perhaps they think your asking price is too high, or they are trying to get a better deal. It’s common in the real estate market, but that doesn’t make it any easier to handle.
A lowball offer isn’t necessarily a bad thing. In fact, many buyers start low as part of their negotiating strategy. However, it’s important to know how to respond to these offers, especially if you want to get the best deal for your property, whether it’s a charming South Hudson home for sale or a spacious Southern NH property.
Why Do Buyers Make Lowball Offers?
There are several reasons why a buyer might make a lowball offer on your home. Understanding these reasons can help you determine how to respond.
They Want to Test the Waters
Some buyers may not know if they can afford your home and want to see if you’re willing to negotiate. By offering a low price, they can gauge how flexible you are on price.They’re Looking for a Bargain
In some cases, buyers want to get a property at the best possible price, even if that means making an offer well below market value. They may be hoping to find a “deal” on a home, especially in areas with higher prices, like some Southern NH houses for sale.They Feel Your Price is Too High
If your home is priced higher than what similar properties are going for in your neighborhood, a buyer may feel justified in offering much less. They might compare your home to others for sale, such as South Hudson houses for sale, and think yours isn’t worth the asking price.They Need Room for Repairs
In some cases, buyers may know that the home needs repairs or updates. They might offer less money to account for the work they need to do to make the property move-in ready. It’s important to evaluate if any repairs are necessary when dealing with a lowball offer.
How Should You Respond to a Lowball Offer?
Getting a lowball offer doesn’t mean the deal is dead. There are several ways you can handle the situation and still work toward a fair agreement. Here’s what you can do:
1. Stay Calm and Don’t Take It Personally
The first step is to stay calm. It’s easy to feel offended when you receive a low offer, especially if you’ve invested time and energy into preparing your home for sale. However, try not to take the offer personally. It’s just part of the negotiation process.
Remember, buyers know they are expected to negotiate, so they may start low to leave room for back-and-forth. This doesn’t mean your home isn’t valuable or that they’re not interested in buying—it just means they are testing the waters.
2. Evaluate the Market Conditions
Before rejecting a lowball offer outright, it’s a good idea to evaluate the current market conditions. In some markets, lowball offers are more common, especially in a buyer’s market where there are more homes for sale than there are buyers. If you’re selling a home in Southern NH or South Hudson, consider the market trends. If it’s a seller’s market with limited inventory, lowball offers might be less frequent. However, if there are a lot of homes for sale in your area, like South Hudson houses for sale, buyers may feel they have more negotiating power.
Understanding the market can help you decide whether the offer is truly a lowball offer or if it’s just the buyer’s starting point.
3. Counter the Offer
If the offer is lower than what you’re willing to accept, don’t be afraid to counter it. A counteroffer allows you to respond with a price that is more acceptable to you while keeping the door open for negotiations.
For example, if your home is listed for $350,000 and you receive a $270,000 offer, you can counter at a more reasonable amount, like $330,000 or $340,000. It shows the buyer you’re serious about getting a fair deal and gives both of you a chance to meet in the middle.
4. Consider Other Terms, Not Just the Price
Sometimes, a lowball offer may come with favorable terms, such as a quick closing date or a larger down payment. If the buyer is offering a low price but is flexible on the terms, it could still be a good deal for you.
Take the time to evaluate the full picture before rejecting an offer. A buyer who is flexible on terms could still be a good match for your home, even if their offer is lower than you expected.
5. Know When to Walk Away
Not every lowball offer is worth negotiating. If the buyer’s offer is far below the market value and you don’t think you can reach a fair deal, it might be time to walk away. It’s important to know your home’s worth and be firm on your expectations.
If a buyer isn’t willing to meet your price or negotiate in good faith, it’s okay to politely decline the offer and continue marketing your property to other potential buyers. It’s possible that someone else will make a more reasonable offer.
When Should You Expect Lowball Offers?
Lowball offers can happen at any time during the home-selling process, but there are certain situations where they are more common.
If Your Home Has Been on the Market for a While
If your home has been listed for an extended period without any serious offers, some buyers may see this as an opportunity to offer a lower price. They may think you’re getting desperate to sell and hope to take advantage of the situation.During a Buyer’s Market
In a buyer’s market, where there are more homes for sale than buyers, lowball offers are more common. Buyers know they have more options and may offer lower prices to try to get a better deal.If You’ve Priced Your Home Too High
Overpricing your home can lead to lowball offers. If your home is listed for more than what similar properties in the area, like South Hudson houses for sale, are selling for, buyers may offer much lower prices to compensate.
How Can a REALTOR® Help with Lowball Offers?
Dealing with lowball offers can be tricky, but your REALTOR® can help you navigate the situation. As experienced professionals, REALTORS® have the knowledge and skills to handle negotiations, making sure you get the best price possible for your home.
A REALTOR® can:
Provide a comparative market analysis (CMA) to help you understand your home’s fair market value.
Advise you on how to respond to lowball offers.
Assist with counteroffers and negotiations.
Offer guidance on when to accept, reject, or walk away from an offer.
Having a skilled REALTOR® on your side ensures that you’re not just reacting to lowball offers but making smart, informed decisions that align with your goals, whether you're selling a South Hudson house or a property in Southern NH.
Getting Real with the Deal: What You Need to Know About Lowball Offers
Lowball offers can feel frustrating, but they don’t have to derail your home sale. By staying calm, understanding the market, and working with your REALTOR®, you can handle these offers professionally and turn them into successful negotiations. Whether you’re selling a home in South Hudson Houses or exploring Southern NH Houses for Sale, knowing how to respond to lowball offers will help you achieve the best deal.
Don’t be discouraged by a low offer. Get real with the deal and use these tips to navigate the process smoothly. Ready to sell your home? Reach out today, and let’s work together to make your home sale a success!
If you need more tips on lowball offers, or are ready to sell your house give us a call at (603) 883-8840. You can also sign up for your dream home search or reach out to Our Agents for more information. We’d love to help you with your real estate needs.
