Real Estate Negotiation Strategies for Lowball Offers

If you’ve ever faced a buyer who submits an offer that’s tens of thousands below asking, you know the frustration. Real estate negotiation strategies for lowball offers are about more than just protecting your seller’s bottom line. They’re about responding with professionalism, building trust, and guiding the deal back to fair ground. Let’s dive into the practical steps you can take to master these situations.

Real Estate Negotiation Strategies for Lowball Offers

Lowball offers happen for many reasons. Sometimes buyers are testing the waters, hoping desperation will drive a discount. Other times, they’re working with outdated data or simply don’t understand the market. Your job as a realtor is to respond in a way that keeps negotiations alive while protecting your client’s interests.

Here are proven strategies you can use.

Start with Professional Composure

The first rule: don’t take it personally. A low offer isn’t an insult to your seller’s home, even if it feels like one. It’s often just a tactic.

Responding calmly shows both the buyer and their agent that you’re not rattled. A simple, professional reply could be:

• “Thanks for your offer. While this is below what we expected, let’s explore if there’s room to meet in the middle.”

That tone keeps the door open instead of slamming it shut.

Use Data to Reframe Value

Buyers may undervalue a property because they’re comparing it to the wrong comps. This is where you shine as the local expert.

Show them:

• Recent comparable sales within a mile

• Upgrades the seller has invested in

• Market trends, like average days on market and current supply levels

For example:
“Three homes with similar square footage sold in the past 90 days for within 2 percent of our asking price. That data supports where we’re positioned.”

Tools from our guide to the Best Free Tools for Realtors can make pulling this data quick and professional.

Counter with Strength, Not Anger

Lowball offers are rarely the buyer’s final position. This is why you counter instead of rejecting outright.

Strategies include:

1. Reduce the discount: If they’re $40,000 below, counter with $10,000–$15,000 under asking.

2. Focus on terms: Adjust contingencies, closing dates, or repairs instead of price.

3. Highlight urgency: Point out multiple showings or interest from other buyers.

A confident counter keeps negotiations alive while signaling you’re serious.

Scenario Example: The $50,000 Lowball

Buyer: “We’d like to offer $350,000 for this $400,000 property.”
Realtor: “I appreciate you submitting an offer. Based on comps, $350,000 isn’t reflective of market value. However, my sellers are willing to counter at $390,000 with a quick closing date. That’s a fair balance given the upgrades and location.”

Notice how this response is polite but firm. It reframes value without killing momentum.