How to Counteroffer a Lowball Offer for Your Home in St. George

When selling your home in St. George, receiving a lowball offer can be frustrating and disheartening. However, it's important to approach these situations strategically. A low offer doesn’t necessarily mean the buyer isn’t serious; it might simply be their starting point. Responding with a well-thought-out counteroffer gives you a chance to engage the buyer, find common ground, and potentially reach a successful agreement.

These tips might help. 

Stay Objective

A lowball offer can be insulting and annoying, especially if you’ve invested time, money, and effort into preparing your home for sale. However, reacting emotionally could lead to poor decision-making or a loss of negotiation opportunities.

Instead of immediately rejecting the offer, take some time to think it over. Remember, the buyer may be testing the waters to see how much room there is to negotiate. Responding thoughtfully allows you to keep the negotiation alive and maintain a professional approach.

Review the Details

Before deciding how to respond, review the full offer carefully. Sometimes, a lower offer price may be offset by other favorable terms. For example, the buyer might offer a quick closing date, fewer contingencies, or be willing to pay in cash. These terms can work in your favor and make up for a lower initial offer.

Similarly, check if the buyer has any contingencies attached to the offer, such as an inspection or appraisal contingency. A lowball offer with several contingencies may require a different counteroffer strategy than one with clean terms and fewer obstacles to closing.

We will help you look not just at the offer price, but the whole picture of the offer to see how we should respond. 

Prepare a Reasonable Counteroffer

Once you’ve gathered information and evaluated the situation, you can make an informed decision on how to counter the offer. While it’s tempting to simply reject a lowball offer, responding with a counteroffer keeps the negotiation open and shows that you’re willing to engage.

When we are crafting a counteroffer, we aim for a figure that’s reasonable based on the market value of your home, comparable sales in your area, and your bottom line. You don’t have to meet the buyer halfway, but your counteroffer should be fair enough to encourage continued negotiation. The goal is to bring the buyer closer to your price while still leaving room for compromise.

Support Your Counteroffer with Data

We help our clients price their homes based on real data to make sure it's a fair price. A powerful way to strengthen your counteroffer is by backing it up with facts. Providing data on recent comparable sales (known as “comps”) in your neighborhood that support your asking price is one great way to do this. It shows the buyer that your home is priced fairly and helps counter any argument that they’re offering a reasonable amount based on market conditions.

We will help you to present this data in a professional and informative way. This can help educate the buyer about the true market value of your home and may even convince them to increase their offer significantly.

Be Open to Negotiating Other Terms

If the buyer seems firm on their price, consider negotiating on other terms to make the deal more appealing to you. For example, you might ask the buyer to cover some or all of the closing costs, accept the property as-is without requesting repairs, or agree to a flexible closing date that works in your favor.

Non-price terms can often be just as important as the sale price, especially if they reduce your costs or minimize the stress of the transaction. By being open to negotiating these terms, you can create a win-win situation.

Know Your Bottom Line

It's easy to get caught up in the negotiation process. Before you sell your home, decide on your bottom line and any non-negotiable to anchor you during the negotiations. 

Before responding to any offer, set a bottom-line price that you’re willing to accept. This figure should account for your financial goals, the market value of your home, and any potential costs associated with selling.

If the buyer continues to submit low offers that are far below your bottom line, it may be time to walk away. Sometimes, a buyer simply isn’t willing or able to meet your price, and holding out for a better offer may be the best course of action.

Ready to learn more about home sales in St. George? Contact us any time.