One of the most exciting moments in the home-selling process is receiving an offer. But that excitement can quickly turn into frustration when the offer is far below what you expected — or even insulting.
If you’re selling For Sale By Owner (FSBO), lowball offers can feel especially personal because you’re the one handling every step yourself. But here’s the truth: low offers are part of the selling process — and how you respond can make the difference between a failed negotiation and a successful sale.
The key is to approach them strategically, not emotionally. With the right mindset and negotiation tactics, you can turn a disappointing offer into a serious deal — and often get much closer to your asking price than you think.
🧠 Step 1: Understand What a “Lowball Offer” Really Means
A lowball offer is typically defined as an offer that’s 10% to 20% (or more) below your asking price. For example:
- Asking price: $400,000
- Offer price: $320,000 (20% below asking)
At first glance, it might feel insulting. But it’s important to remember: a lowball offer is not a rejection — it’s an opening. Buyers often start low as a negotiation tactic, hoping you’ll meet them somewhere in the middle.
💡 Pro Tip: Even seasoned real estate professionals deal with lowball offers. They’re not a reflection of your home’s value — they’re just part of the game.
🫱 Step 2: Pause — and Remove Emotion from the Equation
It’s natural to feel frustrated, especially if you’ve put time, money, and effort into your home. But reacting emotionally — by rejecting the offer outright or responding angrily — can shut down negotiations before they even begin.
Instead, take a step back and approach the situation objectively. Ask yourself:
- Is the buyer serious, or are they testing the waters?
- Is there room to negotiate toward a price you’d accept?
- Are there other terms (like a fast closing or cash payment) that make the offer more appealing?
💡 Pro Tip: Think of a low offer as a starting point — not a final judgment. Many successful sales start with offers well below asking.
📊 Step 3: Analyze the Offer in Full — Price Isn’t Everything
Before you decide how to respond, look beyond the number on the page. Sometimes, a lower offer comes with terms that could actually work in your favor.
✅ Consider these key factors:
- Financing: Is the buyer pre-approved? A lower cash offer may still be attractive if it reduces risk.
- Contingencies: Fewer contingencies (like inspection or financing) can make a lower offer more appealing.
- Closing timeline: A quick close might save you months of mortgage payments and carrying costs.
- Earnest money deposit: A larger deposit shows the buyer is serious.
- Other concessions: The buyer may be willing to handle repairs, closing costs, or other expenses.
💡 Pro Tip: A “low” offer with strong terms can sometimes net you more overall than a slightly higher offer with complications.
📉 Step 4: Evaluate Your Pricing Strategy
If you’re consistently receiving lowball offers, it might be a sign that your home is priced too high for the current market. Buyers often compare homes side-by-side — and if yours is significantly higher than similar properties, they’ll use that as leverage.
✅ What to do:
- Review recent comparable sales (“comps”) in your area. Are they selling for less?
- Consider how long your home has been on the market. Properties that linger tend to attract lower offers.
- Get a professional appraisal or a comparative market analysis to confirm your pricing.
💡 Pro Tip: Even a small price adjustment (2–3%) can attract more serious buyers and stronger offers.
💬 Step 5: Respond — Don’t Reject
The worst thing you can do with a lowball offer is reject it outright. A polite, strategic counteroffer keeps the conversation going — and signals that you’re open to negotiation, but not desperate.
✅ Example of a professional response:
“Thank you for your offer. While we appreciate your interest, the price doesn’t align with the current market value of the property. However, we’d be happy to consider an offer closer to $390,000.”
This approach accomplishes three things:
- It keeps the negotiation alive.
- It shows you’re confident in your home’s value.
- It invites the buyer to make a more reasonable offer.
💡 Pro Tip: Even if your counter is close to your asking price, many buyers will come up significantly from their initial offer — sometimes tens of thousands of dollars.
🔁 Step 6: Use “Anchoring” to Guide the Negotiation
Buyers often anchor the negotiation with a low offer, hoping to pull you down toward their number. But you can reverse that psychology by anchoring with a strong, fact-based counteroffer.
✅ How to anchor effectively:
- Provide market data to justify your price (e.g., “Similar homes in this neighborhood sold for $395,000–$410,000 in the past 60 days”).
- Highlight unique selling points that add value (e.g., “Our home includes a new roof, upgraded HVAC, and a remodeled kitchen — features not found in competing listings.”)
- Reiterate your bottom line without revealing it too soon.
💡 Pro Tip: Counteroffers that include supporting data are taken more seriously. They shift the negotiation from emotion to logic — which often leads to better outcomes.
🧠 Step 7: Consider Strategic Concessions
Sometimes, the key to closing a deal isn’t about lowering the price — it’s about adding value elsewhere. Strategic concessions can help bridge the gap without significantly impacting your bottom line.
✅ Examples:
- Offer to include appliances or furniture.
- Cover part of the buyer’s closing costs.
- Agree to a flexible closing date.
- Offer a home warranty for peace of mind.
💡 Pro Tip: Small concessions can often “sweeten” the deal for buyers — making them more willing to raise their offer.
⚖️ Step 8: Know Your Walk-Away Point
While it’s important to stay open to negotiation, it’s equally important to know when to walk away. Before offers start coming in, determine your minimum acceptable price — the number below which you’re no longer willing to sell.
✅ Questions to ask yourself:
- Does the offer meet your financial goals?
- Would accepting it still allow you to move forward with your next plans?
- Are you willing to wait longer for a better offer?
If the answer is “no,” it’s okay to politely decline and continue marketing your home. The right buyer is out there — and patience often pays off.
💡 Pro Tip: Having a clear walk-away point helps you negotiate confidently and avoid impulsive decisions under pressure.
🧭 Step 9: Use Lowball Offers as Market Feedback
Even if you don’t accept a lowball offer, it can still provide valuable insights about how buyers perceive your home.
- Are they consistently pointing out the same issues (like outdated finishes or needed repairs)?
- Are they comparing your property to lower-priced listings?
- Is your home’s condition or presentation impacting perceived value?
Use this information to refine your pricing, marketing, or presentation strategy. Sometimes, small changes — like staging improvements or a minor price adjustment — can attract stronger offers next time.
🏁 Final Thoughts: Stay Strategic, Not Emotional
Lowball offers can be frustrating, but they’re not a deal-breaker — and they certainly don’t mean your home isn’t worth what you’re asking. More often than not, they’re simply a negotiation tactic and an opportunity to start a productive conversation.
The most successful FSBO sellers know how to approach these situations with confidence and strategy. By staying calm, analyzing the offer objectively, countering with data, and keeping negotiations alive, you’ll position yourself for the best possible outcome — often much closer to your original price than you expected.
✅ Final Tip: Every offer — even a low one — is a sign that someone sees value in your home. Your job is to guide that interest toward a number that works for both sides.