Receiving a lowball offer can be frustrating—especially when you’ve priced your home fairly. While it’s tempting to reject the offer outright, doing so could mean losing a potential buyer.
Instead of letting emotions take over, it’s important to handle low offers strategically. Whether you’re selling in Arundel, QLD 4214, or any other competitive market, responding the right way can turn a weak offer into a successful sale.
This guide will show you why buyers make lowball offers, how to respond effectively, and negotiation tactics to secure a better deal.
1. What is a Lowball Offer?
A lowball offer is an offer significantly below market value—often 10% to 30% lower than the asking price.
Common Examples of Lowball Offers:
✔ Your home is listed at $750,000, and you receive an offer for $650,000.
✔ Your property is valued at $900,000, but a buyer offers $780,000.
💡 Not all low offers are unreasonable—sometimes, buyers are simply testing the waters.
2. Why Do Buyers Make Lowball Offers?
Understanding the buyer’s motivation can help you craft the best response.
📌 1. The Buyer is Testing Your Negotiation Flexibility
✔ Some buyers assume sellers will negotiate down, so they start low to see your response.
💡 How to respond: A firm but polite counteroffer signals you won’t accept an unfair price but are willing to negotiate.
📌 2. The Buyer Believes Your Home is Overpriced
✔ If similar homes are selling for less, buyers may assume your price is too high.
✔ If your home has been on the market for a long time, buyers might see this as a sign that you’re desperate.
💡 How to respond: Justify your price by highlighting recent comparable sales in Arundel, upgrades, and demand in the area.
📌 3. The Buyer is Looking for a Bargain
✔ Investors and house flippers aim for the lowest price possible.
✔ Some buyers aren’t in a rush and will submit multiple low offers to see who bites.
💡 How to respond: Stay firm on pricing if the offer is unrealistic—but keep negotiations open with serious buyers.
📌 4. The Buyer is Limited by Their Budget
✔ Some buyers love your home but can’t afford the asking price.
✔ They may hope you’ll accept a lower amount so they can buy within their budget.
💡 How to respond: Instead of lowering the price, offer alternative solutions, like negotiating settlement terms.
3. How to Respond to a Lowball Offer
Instead of outright rejecting the offer, use strategic responses to keep negotiations going.
Step 1: Stay Calm and Professional
🔹 Don’t take the offer personally—it’s just a starting point.
🔹 Respond politely rather than reacting emotionally.
🔹 Buyers expect negotiations—countering keeps the conversation going.
💡 Example Response:
“Thank you for your offer. While it’s lower than expected, we’re happy to negotiate. We believe the home is priced fairly based on the market, but we’re open to discussing a reasonable counteroffer.”
Step 2: Counteroffer With a Fair Price
✔ Show you’re willing to negotiate, but set a price closer to your expectations.
✔ Example: If listed at $750,000 and the offer is $650,000, counter at $740,000 instead of dropping too much.
✔ Small price adjustments show flexibility without giving away too much.
💡 Pro Tip: Counteroffers often lead to better final prices—buyers rarely submit their maximum offer first.
Step 3: Justify Your Asking Price With Market Data
✔ Provide comparable sales in Arundel to show why your price is fair.
✔ Highlight recent upgrades (new kitchen, landscaping, renovations).
✔ Mention market demand—if homes are selling fast, use this to your advantage.
💡 Example Response:
“We appreciate your interest. The home is competitively priced based on similar sales in Arundel, including [Example Home] which sold for [X amount] last month. However, we are happy to consider a reasonable offer.”
Step 4: Negotiate Beyond Price
If the buyer is serious but hesitant, explore other negotiation points to close the deal.
✔ Flexible Settlement Dates – Offer an earlier/later move-in date to suit the buyer.
✔ Inclusions – Offer appliances or furniture to add value without lowering price.
✔ Cover Small Costs – Offering to cover minor repairs or fees can make the deal more attractive.
💡 Pro Tip: If price negotiations stall, improving terms can help close the sale.
4. When to Reject a Lowball Offer
Not all lowball offers are worth negotiating. If the offer is unreasonably low or the buyer is not serious, it’s okay to walk away.
Signs You Should Reject an Offer:
❌ The offer is below market value by 20% or more.
❌ The buyer refuses to negotiate or increase their offer.
❌ You have multiple interested buyers at a higher price.
❌ The buyer has unrealistic demands that don’t align with the market.
💡 Example Response:
“We appreciate your offer, but it is significantly below market value. We are looking for a more competitive offer based on comparable sales in the area.”
5. How to Prevent Lowball Offers in the First Place
To minimise lowball offers, set the right expectations from the start.
✅ Price Your Home Correctly
✔ Homes priced fairly from the beginning receive stronger offers.
✔ Overpriced homes attract lowball offers when they sit on the market too long.
✅ Market Your Home Effectively
✔ High-quality professional photos and videos create a premium perception.
✔ A well-written listing description highlights unique selling points.
✔ If buyers see value, they’re less likely to submit low offers.
✅ Create Competition
✔ More buyer interest = fewer lowball offers.
✔ Set a deadline for offers to create urgency.
✔ If multiple buyers are interested, it strengthens your negotiation power.
6. Frequently Asked Questions
1. Should I accept a lowball offer?
Not immediately. Counteroffer with a reasonable price and negotiate.
2. How do I respond without losing the buyer?
Stay professional, justify your price, and offer a counter that encourages further discussion.
3. What if I get multiple lowball offers?
Reassess your pricing and marketing strategy—buyers may see your home as overpriced or less desirable.
4. Can I ignore a lowball offer?
Yes, but it’s better to respond professionally to keep options open.
5. Do lowball offers mean my home is priced too high?
Not always. Some buyers simply try their luck. Compare with recent sales to ensure your price is competitive.
Conclusion
Lowball offers can be frustrating, but how you handle them can impact your final sale price. Instead of outright rejecting them:
✔ Stay professional and counteroffer strategically.
✔ Justify your price with market data and home features.
✔ Negotiate on terms (not just price) to close the deal.
✔ Walk away if the offer is too low and the buyer isn’t serious.
For expert negotiation strategies and real estate advice, visit our Selling Property in Arundel, QLD 4214 page.