Mortgage Blog

Getting you the mortgage you deserve

How to Handle a Low-Ball Offer in Real Estate | Home Selling Advice

September 15, 2021 | Posted by: Justin Emilio

How to Handle a Low-Ball Offer in Real Estate - Home Selling Advice

How to negotiate and handle low-ball offers on your real estate property in a buyer's market without compromising the value or worth of the sale.

How to Handle a Low-Ball Offer in Real Estate

Would you know what to do if someone offered you a lowball price for your rest estate investment? It can be pretty frustrating at first to receive lowball offers for your home. Buyer's markets are more likely to see low ball offers than seller's markets. The selling process of a home requires negotiation, and a lowball offer is better than none. Sellers should consider this before they reject a low bid based only on their emotions.

It's your intention to get the most money possible for your real estate investment, and you have set your sights on a reasonable price.

There's nothing wrong with getting the lowball offer, but it can be upsetting. You should consider every offer – unless the submission is just outrageously low. This is where the art of negotiation is necessary for all real estate professionals.

What is a Low-Ball Offer?

As the name implies, a lowball offer is one that is largely below a seller's asking price or a quote that is substantially lower than the seller's price expectation. Another meaning of lowballing is to give a false estimate knowingly.

In real estate, most typical "low-ball offers" are around 10% less than the listed market price on the property.

Why are they low-balling me?

Usually, the potential buyer making the low-ball offer is not actually expecting the seller to accept; instead, buyers can use it to start or push forward negotiations.

A low-ball offer is typically used to encourage a seller to sell assets quickly, particularly when a seller may need to liquidate assets. Prospective buyers may also begin negotiating a price with a lowball offer to gauge a seller's assessment of value. Negotiations can be more successful in the buyer's favor if the buyer has this information.

Offering a meager price works best when the buyer has the upper hand, giving them room to negotiate. Trying to low-ball the sale price in a tight housing market might not necessarily lead to good results if the seller already has the edge.

What are My Options?

Despite the frustrating nature of lowball offers, a home seller can focus on the more important goal of selling their house and stop focusing on the lowball offer itself. Getting offers really just means, it's negotiation time.

You could be offered a much lower amount than your price range for a variety of reasons. Often homebuyers make low offers to start as a gesture of good faith that they won't pay too much.

Your home is of interest to them, and they are eager to get the negotiations started. So you shouldn't be alarmed if an offer is low.

How To Make A Counter-Offer

Always respond with a counteroffer, regardless of whether the buyer feels your home is priced too high or believes no offer should come close to the asking price.

A lowball offer can be countered in several ways. Countering a low ball offer to your lowest and final price that you are willing to accept is one of the top negotiation strategies. The buyer and you won't have to correspond much back and forth.

The seller and their Realtor may also use the strategy of countering back to the original offer after receiving a lowball offer. Having a serious offer instead of an insulting low-ball offer can demonstrate to a buyer that you are not going to play games. A counteroffer at a full price might deter a buyer from continuing to pursue the property further, however.

It's ideal to consult your trusted real estate agent with the methods of negotiation to ensure you're getting the most out of the sale of your real estate investment property.

Back to Main Blog Page

2022

10 Things to Know About the Offer Process

A Six-Step, Back to Basics Financial Plan for Most Every Canadian

Canada's Inflation at 6.9% in October Supports a December Rate Hike

10 Important Questions to Ask Your Contractor

First-Time Homebuyer Tips

Bank of Canada Slows Pace of Rate Hikes

Bank of Canada Rate Update October 26, 2022

Best Ways to Plan for Your Down Payment

Bank of Canada Will Not Be Happy With This Inflation Report

Common Mistakes That House Flippers Make & How to Avoid Them

Credit Clean-Up!

Understanding Mortgage Trigger Points

Canadian Inflation Slows For the Second Consecutive Month

How Mortgage Rates Affect Buying Power?

Bank Of Canada Rate Update September 7, 2022

September 7th BoC Rate Hike

Adapting Your Finances

5 Reno’s With the Best ROI

Should You Pay Off Your Mortgage Early?

Gasoline Prices Dipped, But No Time To Celebrate

How Many Homes Should You View Before Buying?

Looking to buy your first home in BC? Here are programs that can help you with that goal

Breaking Your Mortgage Without Breaking The Bank - How Mortgage Penalties Are Calculated

5 Things to Consider When Building Your Own Home

Canadian Inflation Surged to 8.1% in June

Bank Of Canada Rate Update July 13, 2022

Tips for Buying Rental Investment Properties

Inflation, Interest Rates & Locking In

New to Canada?

5 Negotiation Secrets Smart Buyers Use to Get Better Deals

Bank Of Canada Rate Update June 1, 2022

Another Jumbo Rate Hike, Signalling More To Come

Dreaming of a Home Away From Home?

Reverse Mortgages and What to Know

How a Mortgage Pre-Approval Can Protect You from Rising Rates

Purchase + Improvements Mortgages

How is a Private Mortgage Different Than a Traditional Bank Mortgage

Have You Had Your Mortgage Check-Up?

Purchase Plus Home Improvements?

Home-Buying 101: A Guide to Purchasing Your First Home

Bank Of Canada Rate Update April 13, 2022

From tax breaks to homebuyer incentives, how the 2022 federal budget affects Canadians’ wallets

5 Benefits of an Investment Property

Preparing for the Spring Market

Refinancing: What You Should Know

Tips for Picking the Right Home to Flip

Bank of Canada Starts Hiking Rates, Signalling More To Come

The Difference Between Bank of Canada Rate and Prime Rate

Bank Of Canada Rate Update March 2, 2022

Can Housing Upgrades Affect Your Insurance?

What to Look for During a Home Tour??

Understanding Insurance

Rent to Own Homes vs. Mortgage: How Do They Work?

Improving Your Financial Direction

Bank Of Canada Rate Update January 26, 2022

Top 10 Questions to Ask Your Mortgage Broker in BC

How Much of A Mortgage Can You Afford?

Housing Market Predictions

2021

Prequalification and Pre-Approval—What is the Difference? Home Buying in BC

Bank Of Canada Rate Update December 9, 2021

Selling Your Home in Winter

Mortgages for the Self-Employed

What to do if You Are Denied a Mortgage

How to Know if it's Time to Refinance

7 Steps for Mortgage Prep

Up for Renewal??

Bank Of Canada Rate Update Oct 27, 2021

Five Great Benefits of Owning an Investment Property

What Is Home Equity and How Can I Build It?

Why Invest in a Home Inspection

Low Credit is Spooky! Get Better Credit With The 5 C’s

Fall Home Tips

How to Handle a Low-Ball Offer in Real Estate | Home Selling Advice

5 Approval Roadblocks You Should Know

How to Talk to Your Kids about Finances

Bank Of Canada Rate Update Sept 8, 2021

What are credit scores and how are they important?

Getting a Mortgage as a Student

What Happens if You Lose Your Job Before Closing?

How a Funding Condition Can Secure Purchasers From Financial and Legal Penalties in BC

Bank Of Canada Rate Update July 14, 2021

Risks of Putting Down a Firm Offer with a Pre-Approval BC

Low Rates in BC Helping Buyers Pay Off Their Mortgages at Record Pace

Buying Land To Build A Home in BC

Bank Of Canada Rate Update June 9, 2021

Your House-Closing Timeline: A Step-By-Step Guide | BC

What Are the Next Steps After Your Offer Was Rejected? In BC

Investing In An Apartment Complex

2021 Mortgage Stress Test - Latest Updates

Things To Look Out For When Viewing A Property

April 21-2021 - Bank of Canada will hold current level of policy rate until inflation objective is sustainably achieved, adjusts quantitative easing program

Stress Test 2021

April 2021-Bank of Canada Releases Results from Consultations on Inflation and Monetary Policy

Buying A Home As A Senior Citizen | BC

Top 10 Considerations When Moving to a New Area

Multi-Family Lending: What You Need To Know About Hard Money Loans

Why Borrowers May Choose a Private Mortgage

How to Handle a Mortgage After a Separation or Divorce

How Good vs Bad Debt Impacts Your Household

Benefits of Investing in Multi-Family Real Estate

2020

Top 3 Biggest Home Seller Mistakes

3 Tips on How to Better Your Credit Score

Renting VS Buying a Home

Five Tips for Buying a Condo

Cons of For Sale By Owner (FSBO)

Real Estate 101: Getting Your Home Ready To Show

Tips for Real Estate Investors

Reverse Mortgages – Impact on Heirs

Advice for First-Time Home Sellers

Top 3 Home Improvement Ideas to Increase the Value of Your Home

5 Things NOT To Do When Selling Your House

Home Inspections, How They Can Benefit Home Buyers and Sellers

Useful Tips for Buying and Selling A Home During Covid-19

When Is Mortgage Refinancing a Bad Idea?

Is it a Good Time to Become a First-Time Home Buyer?

5 First-Time Homebuyer Mistakes To Avoid

5 Smart Ways to Use a Home Equity Line of Credit

What should you consider when refinancing your mortgage?

6 Signs a Home Will Likely Increase In Value

6 Persistent Real Estate Myths You Really Need to Ignore

Should You Pay Off Your Mortgage Early?

New Stress Test On Insured Mortgages

Real Estate 101: Essential Tips for First-Time Home Buyers

10 Essential Tips for Taking Out Your First Mortgage

Should You Refinance Your Mortgage?

Should You Spend the Full Mortgage Amount You're Approved For?

Take Advantage of Low Interest Rates – Refinance Your Mortgage Today!

2019

Strategies to Dig Yourself Out of the Debt Hole

Why You Need an Emergency Fund And How to Get One

The Benefits of Investing in Income Producing Properties

4 Hidden Problems That Could Be Hurting Your Home Sale

users image

Hi, How can I help you?