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

By Derek and Mariana Wagner

Since launching their real estate careers together on September 11, 2001, Derek and Mariana Wagner have been a trusted team in the Colorado Springs market for over two decades.

Receiving an offer after listing your home can be an exciting experience. But when that offer turns out to be far below expectations, it can also be frustrating. We’ve worked through many of these situations and helped homeowners navigate lowball offers successfully to reach the closing table. Here are the five steps we follow whenever we receive an offer that seems too low:

1. Do not take it personally. The first and most important step is to avoid taking a lowball offer personally. It may feel like an insult, but it is essential to stay calm and objective. Emotions can cloud judgment, and responding emotionally could mean missing out on an opportunity.

2. Evaluate the whole offer. Price is just one part of any offer. Other factors may work in your favor, such as fewer contingencies, an all-cash purchase, or a flexible closing date. These can help reduce stress, save time, and even preserve your bottom line. Sometimes, buyers also waive concessions, which can make a big difference financially

3. Understand the buyer’s perspective. There are two kinds of homes in the market: those waiting for a buyer and buyers waiting for a home. If a buyer doesn’t find the right fit immediately, they’re simply watching new listings come in. When they see a home they like, they may compare it to others that have recently lowered their prices. In fact, 48% of homes in the Pikes Peak MLS took a price reduction in May. Most buyers are seeing those reductions in real time, often multiple times a day. If your home hasn’t had a price change and appears to be priced above similar homes, that perception alone can trigger a low offer.

4. Counter the offer. It’s important to see all offers as a chance to negotiate. You never have to accept a low offer outright, and even if the initial numbers are far apart, it may still lead to a successful deal. We’ve seen situations where a wide gap between the asking price and the offer was eventually bridged through negotiation. Buyers may just need a signal that you’re open to discussions. You can counter with different terms, adjust concessions, or stay close to your asking price.

5. Know your endgame. Always go back to your reason for selling. Whether it’s a job relocation, moving up or down, or letting go of a rental property, keeping that purpose in mind can put the offer in perspective.

A low offer doesn’t mean a buyer isn’t serious. The very act of submitting an offer shows interest. When handled properly, even lowball offers can turn into fair agreements that meet both the buyer’s and seller’s needs. Once you understand what’s important to both sides, you can often reshape the offer into a win for everyone involved. If you have questions or need guidance, just reach out. You can call us at 719-437-7311 or send an email to derekandmariana@artisangroupco.com. We’re always here to help.