Handling Low Offers: A Guide to Responding to Below-Ask Bids

Selling your home can be stressful, from unexpected inspection issues to staging costs - every step comes with its own challenges. Including the final one - when you're confronted with an offer that falls below your asking price. Yes, we know - it is infuriating. But don't shoot the messenger - Real estate agents are required to present all offers, no matter the amount. Rather, consider taking a step back. Take a deep breath and read through this checklist to weigh your options.

Let's Break Down the Offer

Carefully review the offer to understand all terms and conditions, including the offer's expiry date and time, contingencies and financing details. A cash offer may align better with your priorities, offering a faster, hassle-free transaction. But be prepared for a significant discount on your asking price, as buyers often negotiate aggressively. They may view your home as overpriced, or they could simply be unable to meet your asking price. Maintaining a balanced perspective will help guide your response and pave the way for a successful negotiation.

Read more: Top tips on how to market your home for the best returns.

Is the Market on Your Side?

Assess the current market conditions in your area to determine if anything has changed since your listing. In a seller's market with high demand and low inventory, you'll have more leverage to reject a low offer. Conversely, in a buyer's market with more homes than buyers, you may need to be more flexible to secure a fair deal. Be sure to talk to your agent - they're there to help. Use their expertise to ensure your asking price aligns with market trends. 

Counter or Walk Away? Find the Sweet Spot

Consider making a counteroffer rather than outright rejecting a low offer. This shows you're open to negotiation while keeping the conversation going. However, if the buyer remains inflexible, be prepared to walk away. Knowing your bottom line and having the patience to wait for the right offer is crucial to a successful sale.

Read more: How to choose a great agent

Stay Positive

Don't get discouraged. Continue to work with your agent on marketing your home and actively seek prospective buyers with different offers. Patience, strategy, and flexibility are often the keys to a successful sale - one that benefits both the seller and the buyer.