Buyers are testing the market right now, and the negative reaction to a low offer could cost you the deal. Here's what we recommend every time.

If you've ever had your home on the market and received an offer well below what you were expecting, you know the feeling. The first reaction is usually frustration, maybe even offense. Is this a serious offer? Are they even pre-approved? Can they actually buy my home? Those are natural questions, and you're far from alone in asking them. We sell a home on average every 3 days, so this is something we come across often.

Lowball offers are common, and they're becoming increasingly more common in today's market because buyers have options. Many buyers right now are putting offers out there to test the waters and see whether sellers are willing to negotiate. The question isn't whether you'll receive a low offer. It's how you respond when it happens.

Number one rule: Always counter. Our number one recommendation, every single time, is to counter the offer. Even if you're offended or even if the number feels insulting. If you don't counter, the conversation ends right there. 

The buyer has nothing to respond to, nowhere to go, and they walk away. You lose that buyer permanently. Countering doesn't mean you're agreeing to their price. It means you're keeping the door open. Even coming down $500, $1,000, or $5,000 signals that you're willing to have a conversation, and you never know where that conversation might lead.

"Countering doesn't mean you agree to their price. It means you're keeping the door open."

What happens when you don't? We listed a property recently and received an offer on the very first day. The buyer was comparing our home to an exact model in the same neighborhood and asked for a sizable credit. Our seller's reaction was immediate: "It's the first weekend; they can go pound sand." We advised them to counter, but the emotions were running high, and they didn't want to engage. 

The buyer moved on, negotiated with the competing home, and that property went pending. Three to four weeks later, our seller came back and said they wished they had countered. They were actually willing to come down a bit; they just got caught up in the moment and let the opportunity pass. By then, the buyer was gone.

Keep the conversation going. The whole point of countering is to keep the negotiation moving forward. Even if you come down just a small amount, you're signaling to the buyer that there's room to talk, and that alone can be enough to bring them back to the table. When you don't counter, the buyer has nowhere to go, and the conversation is over. When you do, even by $500 or $1,000, you give your agent the opportunity to work the deal, structure the terms, and find where the two sides can meet. 

It sounds simple when you're reading it here, but in the moment, when tensions are high, emotions are running, and you need to sell this home to buy the next one, the temptation to shut it down is real. A good agent will help you push through that and keep the process moving in the right direction.

Bonus: Make sure your agent has your best interests in mind. On the buyer side, it's worth paying attention to whether your agent is truly negotiating in your best interest. We had another situation where a buyer lost out on a property because their agent wouldn't accept a commission below a certain percentage. 

The difference was about $1,500, and the seller went with the other offer, where the agent was willing to be flexible. Your agent should be doing what's right for you, not protecting their own fee at the expense of the deal.

If you're selling in Greater Sacramento and want help with your pricing strategy or negotiation approach, we'd love to talk it through. Call us at 855-935-MORE (855-935-6673), email us at [email protected], or visit our blog at made4morerealty.com/blog. We’re here to help.