Responding to a lowball offer

Some buyers start low to leave room to negotiate. Others are working from different comparable sales, a tight budget, or worries about the home's condition. A few are testing whether you're in a hurry. Knowing which one you're facing helps you respond the right way.

• Counter near your asking price, with a short explanation.
• Counter with a smaller price drop but fewer concessions, like less money toward the buyer's costs.
• Counter on terms, such as a faster closing or a shorter inspection period.
• Decline in writing if the offer is far from realistic.
• Wait a short time to see if other offers arrive, if your agent thinks that's likely.

A good counter explains your price. Ask your agent to share recent nearby sales of similar homes, updates you've made, and how long similar homes have been taking to sell. Facts give the buyer's agent something to bring back to their client.

A lower price with strong terms can sometimes net you about the same as a higher offer with weak ones. Compare:

• How much the buyer is asking you to pay toward their costs
• How they're paying, and whether they're pre-approved
• Which contingencies they've included and how long they last
• The closing date and whether it fits your plans
• The earnest money deposit

Ignoring an offer usually ends it. A counter, even a firm one, shows you're open to a deal. Stay polite and let your agent handle the back-and-forth. Many sales that start with a low offer still close at a fair price.

A fast, professional reply keeps a buyer engaged. Waiting days to answer can push them toward other homes. Decide ahead of time with your agent what price and terms you'd accept, so a low offer doesn't catch you off guard. Then you can respond with a clear counter instead of a reaction.

One low offer isn't a trend. But if you get several, or few showings, the market may be telling you something. Review your price, condition and marketing with your agent, and compare with the most recent nearby sales.