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

By Erik Kelly

Erik Kelly has been a top-producing real estate professional since 2002 and a proud Phoenix resident since 1996. His deep community ties and industry reputation have enabled him to build a thriving, referral-based business.

Getting a lowball offer on a home can feel like a punch in the gut, but before rejecting it outright, it’s important to consider a strategic approach. The housing market in 2025 has seen some shifts, with home prices still high and interest rates hovering around 7%. So, how should a seller respond to a low offer while still maximizing their sale? Let’s explore your options.

1. Recheck the market comps. Before you react, double-check that the offer is actually low. The market moves fast, and home values can shift in just a few weeks. Some experts predict a 5% price increase this spring, so make sure your pricing is still accurate. You should also look at recent sales of comparable homes in your area. You can also ask the buyer’s agent where they got their numbers—sometimes, they’re just misinformed. If you can show them stronger comps, they may be willing to adjust their offer without much negotiation.

2. (Almost) Always counter offer. Once you’ve confirmed your home’s value, don’t walk away too fast. It’s usually worth countering unless the buyer isn’t serious. Some buyers start low just to see if they can get a deal. If they refuse to negotiate or immediately shut down your counter, they probably weren’t serious to begin with. But in most cases, a counter offer keeps the conversation going and gets you closer to your goal.

3. Find a middle ground with better terms. Price isn’t the only thing up for negotiation. Some buyers submit low offers because they’re short on cash, not because they’re trying to take advantage of you. Instead of lowering your price, consider asking for better terms—like a shorter inspection period, a rent-back agreement, or fewer contingencies. If price is the sticking point, offering to cover some closing costs or buying down their interest rate might help bridge the gap without sacrificing your bottom line.

Lowball offers aren’t fun, but they don’t have to be deal-breakers. If you’re selling this spring and want expert advice on pricing, negotiating, or market trends, let’s talk. Call or email me today—I’m here to help you get the best deal possible!