There’s nothing quite like the excitement of getting an offer on your house—that is, until you see the number and it’s not as high as you hoped. Suddenly, the thrill of a sale is overshadowed by an unforeseen low ball offer that leaves you wondering if the buyer even glanced at your listing. It can be frustrating, especially if this is not the first time, but don’t panic! A low ball offer doesn’t mean the end of the road, and more than likely means that the process has only just begun.
In this post, the real estate experts at Black Bear Property Management walk you through how to handle those offers with finesse and confidence, so you can still come away with a deal you’re happy with.
Know the Market and Context
First, you need to understand why buyers make low ball offers in the first place. A lot of the time, it’s about negotiation. Buyers are testing the waters to see how much wiggle room you’ll give them. In some cases, particularly in a competitive market, they might even be hoping to spark a bidding war that will push the price up.
The market’s conditions are also important to be aware of. For example, if it’s a seller’s market, you might have more leverage to hold out for a better offer, whereas in a buyer’s market, the offer could be more reflective of the available inventory and competition. If you’re not sure where to start, your real estate agent can provide a detailed market analysis to give you a solid reference point. Another way of understanding the market is by looking to see what comparable homes (or "comps") in your area have recently sold for. If you know the relative value of your home (and the comps around you), then you can extrapolate that it’s likely a seller’s market if homes are selling higher than expected and a buyer’s market if homes are selling lower.
Next, take a look at the buyer’s position (analyzing whether they are pre-approved or working with an agent). A buyer who’s serious about purchasing and well-prepared might be less likely to play games with offers. How they’ve positioned themselves could give you a clearer picture of whether they're just trying to get a deal or if they're serious about making this work.
Your Response Strategy
Counter Offer or Reject?
When faced with a low ball offer, responding with a counter offer is often your best move. You don’t have to accept the initial offer, but you also don’t want to walk away from a potential sale without negotiating. When crafting your counter offer, make sure it’s based on realistic numbers—use your home’s market value and comps as your guide, but also consider the buyer’s position. A well-thought-out counter keeps the dialogue open and shows that you’re serious about negotiating.
Rejecting the offer outright is another option, but it’s usually best to avoid this unless the offer is particularly far below your expectations. You risk losing the buyer altogether, and in a slow market, this could leave you with fewer options. It's often better to counter and see if you can meet somewhere in the middle.
Negotiation Tactics
Stay calm and professional throughout the negotiation process. Keeping a cool head will help you avoid making rash decisions based on emotions. Remember, you’re negotiating for what’s best for you, not for the buyer, and a low ball offer may end up benefitting you in the long run. Here you can use negotiation tools to address the buyer’s pain points, such as adding contingencies to the counter-offer (for example, making the sale contingent on a successful home inspection) or considering creative options like asking for a price increase while offering to cover part of the buyer’s closing costs. If you can find a way to address any pain points they have that benefit both you and the buyer, you should be able to come up with a sufficiently attractive counter-offer. These tactics can help you move closer to your price without lowering it.
Setting a Bottom Line
You probably have already determined this before listing your property, but before responding, make sure you know your bottom line—the absolute lowest offer you’re willing to accept. This number should be based on your financial needs and market conditions, and your real estate agent will help you understand how low you should ever go. Knowing your non-negotiables is crucial because it ensures you don’t get pressured into agreeing to a deal that doesn’t align with your goals. Stick to your guns, but be willing to compromise where it makes sense and if it will pave the way to an agreeable sale.
When to Walk Away From an Offer
Knowing when to walk away from a deal can work in your favor. If a buyer’s offer is far too low and you’re not desperate to sell, standing firm on your price can send a strong message that you’re not willing to settle for less than your home’s worth. Respond in a way that keeps the conversation alive—thank them for their offer, explain your position, and express that you’re open to negotiating if they’re willing to come closer to your price. This approach keeps the relationship intact and leaves room for future discussions.
By setting a positive tone now, you leave open the possibility that the buyer might rethink their offer or return with a more competitive bid. Sometimes, all it takes is a little time for them to realize that their initial offer wasn’t as realistic as they thought. Keep the door cracked; you never know when they’ll knock again!
Work With a Professional Real Estate Agent
At Black Bear Real Estate and Property Management, we’ve brokered many home sales, and we pride ourselves on being expert negotiators who know the local market inside and out. We don’t just respond to offers; we craft strategic counteroffers that maximize your home’s value while keeping negotiations on track. If you need to sell your home in Fort Collins, contact our team to make the process as painless as possible.