How to Handle a Lowball Offer on Your Home

A lowball offer is typically defined as a bid 10, 25% below your asking price, though some real estate professionals set the threshold at 20% or more below list. Receiving one can be frustrating, but it is also one of the most common events in a real estate negotiation, and how you respond in the next 24 to 48 hours determines whether the deal dies or moves forward.

The right response depends on how far below asking the offer lands, what the current market looks like, and how motivated the buyer actually is. A 10% gap in a seller’s market calls for a different move than a 25% gap in a buyer’s market with rising days on market.

This guide covers what makes an offer a lowball, why buyers submit them, a 6-step response process, a tiered decision table by discount percentage, non-price terms you can negotiate, when to walk away, and the five mistakes sellers make most often.

What Is a Lowball Offer on a House?

A lowball offer is a purchase bid that comes in 10, 25% below the asking price, far enough below list that it signals the buyer is either testing your floor, working from a different view of the market, or unwilling to pay fair market value. The seller’s job is to figure out which one before responding.

The numeric range is where most definitions converge. Redfin, RE/MAX, and HomeLight all cite the 10, 30% range. RE/MAX specifically sets the threshold at 20% or more below asking. Park City Real Estate defines lowball as “typically 20, 25% less than the asking price.” The practical takeaway: any offer more than 10% below your listing price deserves a deliberate, data-backed response rather than an emotional one.

How Much Below Asking Price Is a Lowball?

Lowball offer percentage thresholds vary slightly by source, but the table below shows the consensus ranges used by real estate professionals in 2026.

Discount off Asking Price	Common Classification
1, 5% below	Normal negotiation range
5, 10% below	Below-asking but not a lowball
10, 20% below	Lowball by most definitions
20, 25% below	Clear lowball; RE/MAX threshold
25%+ below	Extreme lowball; investor territory

Based on Redfin, RE/MAX, and HomeLight definitions, 2026. Verify against current market conditions before transacting.

According to NAR median days-on-market data, homes that sell quickly in tight markets rarely attract offers below 5, 10% of list, the number of days on market is one of the clearest signals of how aggressively a seller can push back on a low bid.

Lowball vs. Below-Asking: Where’s the Line?

Not every below-asking offer is a lowball. An offer 3% below list on a home that has been listed for 90 days in a slow market is a reasonable opening bid. An offer 15% below list on a home that received two competing offers in its first week is a lowball by any reasonable standard.

The relevant threshold shifts with three variables: market conditions (seller’s market vs. buyer’s market), your home’s days on market, and the gap between your listing price and its appraised value. A buyer who has reviewed recent comparable sales and still comes in 20% below is sending a different signal than a buyer who simply has not done the research.

Why Do Buyers Submit Lowball Offers?

Buyers submit low offers for three distinct reasons, and identifying which one you are dealing with shapes your entire counteroffer strategy.

Testing Seller Motivation

The most common reason is pure negotiation anchoring. A buyer who opens at 20, 25% below asking expects you to counter, expects to split some of the difference, and is trying to establish a low anchor so the midpoint lands in their favor. Per Park City Real Estate’s June 2025 analysis, this approach is standard practice for buyers who have been coached to “leave room to negotiate.”

The tell: the buyer’s offer is otherwise clean. Solid financing, reasonable contingencies, earnest money at or above the norm. The price is the only problem. These buyers usually move up significantly after one firm counter with comparable sales attached.

Investor Buyers vs. Primary Buyers

Investor and house-flipper buyers routinely open 20, 30% below market because their business model requires a margin. They are not insulting your home, they are running a number. Most do not expect to win at their opening offer, but some will walk if you counter near list price. Knowing the buyer’s intended use (primary residence vs. investment) gives you context for how firm to hold.

Primary-residence buyers who lowball are often under-informed. They may not have reviewed recent closed sales in your neighborhood, or they may have seen asking prices online without understanding how the actual closing prices compare. A counter that includes two or three comps often resolves this gap faster than any amount of back-and-forth over the price itself. How counteroffers work in real estate is a concept many first-time buyers have only a surface understanding of going into negotiations.

When the Buyer Genuinely Misreads the Market

Some buyers arrive at their number honestly but incorrectly. They saw a similar home sell for less six months ago, they are comparing your home to a distressed sale two streets over, or they heard anecdotally that the market has softened. This type of buyer is actually the easiest to bring along, because the fix is information, not a standoff.

How to Respond to a Lowball Offer: 6 Steps

The process below is how to respond to a lowball offer in a way that protects your position, keeps the negotiation alive, and gives you the best chance of closing at or near your target price.

After both parties agree on terms, the transaction moves into escrow and the closing process begins. See steps to closing on a house for a forward-looking view of what comes next after your counteroffer is accepted.

How Low Is Too Low? Tiered Response Guide

This section answers the question no competitor covers from the seller’s side: exactly what to do based on how far below asking the offer lands. The threshold for “is 20% off a lowball offer” is a direct yes, but the response to a 20% gap is different from the response to a 5% or 30% gap.

Discount off Asking	What It Typically Signals	Recommended Seller Response	Counter Starting Point
5, 10% below	Normal negotiation; buyer expects to split	Standard counter at or near list price	List price or 2, 3% below
10, 20% below	Meaningful gap; buyer testing your floor	Counter with 3, 5 comps attached	Within 3, 5% of list price
20, 25% below	Clear lowball by all major definitions	Set your floor first; one firm counter	No lower than net floor
25%+ below	Investor or uninformed buyer	One firm counter or decline; evaluate earnest money	Net floor or no response

Based on Redfin, RE/MAX, Park City Real Estate, and HomeLight definitions, 2026. Verify current market conditions before transacting.

5, 10% Below Asking: Routine Counter

An offer 5, 10% below your asking price is within the normal range of negotiation in most markets. The buyer likely expects to meet somewhere close to your list price. Counter at or very near your original ask, attach your comps briefly, and set a 24-to-48-hour expiration. In a seller’s market, this type of offer rarely requires more than one round of negotiation.

10, 20% Below Asking: Counter with Data

A 10, 20% gap is where the lowball offer percentage starts to feel significant. Before you counter, pull three to five recent comparable sales and confirm your listing price is defensible. If the comps support your asking price, counter within 3, 5% of it and include the comp data explicitly. If the comps suggest your home is slightly overpriced, this is the moment to recalibrate, a price adjustment based on data is stronger than a price adjustment based on pressure.

To understand how to determine your home’s fair market value before countering, Bankrate’s home valuation guide walks through the comp-based approach appraisers and agents use.

20, 25% Below Asking: Decide Your Floor First

Yes, 20% below asking price is a lowball offer by virtually every professional definition. Redfin, RE/MAX, and most real estate agents set 20% as the operative threshold. Before you respond, calculate your walk-away number and commit to it. Counter once, near your list price, with comp support. If the buyer comes up to a number above your floor, you have a deal worth pursuing. If they don’t move meaningfully, you have your answer after one round instead of four.

In a buyer’s market with rising days on market, an offer 20, 25% below asking is more common and still worth one serious counter. In a seller’s market where comparable homes are closing at or above list, 20% below is far outside the range of realistic negotiation and you can hold firm without concern.

25%+ Below Asking: When to Walk Away Immediately

An offer 25% or more below asking is almost always from an investor, a house flipper, or a buyer who has done no market research at all. These buyers expect rejection and are running a volume-based strategy: make 10 offers at 30% below market, win one or two. You are not obligated to engage.

That said, one firm counter at your net floor costs very little. Send it with a short expiration window. If the buyer comes up to a real number, you have a deal. If not, you have formally closed that negotiation and are free to move on.

What to Negotiate Beyond the Purchase Price

When the price gap is in the 5, 15% range, non-monetary terms can close the deal without requiring either side to move further on the sale price. These levers are frequently overlooked in real estate negotiation because both sides focus on the headline number.

Closing Cost Concessions

Sellers can offer to cover 1, 3% of the purchase price in buyer closing costs. This concession may have a different tax and comp impact than an equivalent price reduction, so consult a CPA before agreeing to one. The practical advantage: the recorded sale price stays higher, which supports the comparable sales that will follow in your neighborhood.

Closing Date Flexibility

A longer close window (45, 60 days) or a leaseback arrangement (you stay in the home for 30, 60 days after closing) has measurable dollar value to buyers who are flexible on possession date. Sellers who need extra time after closing sometimes underestimate how much a buyer will trade in price for certainty on timing.

Understanding contingent vs. pending status matters here too, when you modify contingencies as part of a negotiation, it changes how the property appears on the MLS and how other potential buyers perceive its availability.

Contingency Modifications

An appraisal gap waiver (buyer agrees to cover the difference if the home appraises below the purchase price) or a reduced inspection period reduces the seller’s risk of a second round of price renegotiation after the inspection. These modifications are particularly valuable in markets where appraisal gaps are common. How often sellers offer concessions varies by market and year, NAR’s annual seller data shows this shifts significantly with inventory levels.

Personal Property and Appliances

Including a washer and dryer, refrigerator, or other appliances adds perceived value to the buyer without reducing the recorded sale price. This matters for comparable sales: a $5,000 appliance package costs you less than a $5,000 price reduction and does not pull down the comps for your neighbors selling six months later.

When to Walk Away from a Lowball Offer

Knowing when to stop countering is as important as knowing how to counter. Not every buyer is worth pursuing through multiple rounds.

Signs the Buyer Isn’t Negotiating in Good Faith

Watch for these patterns: the buyer has not moved more than 2, 3% across two rounds of counters; the buyer is adding non-price demands alongside a price already below your floor; the buyer’s financing pre-approval does not cover your counter price. Any one of these is a signal that continuing the negotiation is unlikely to produce a workable deal.

Your Bottom Line: How to Calculate It

Before you respond to any offer, calculate your net floor: listing price minus agent commission (typically 2.5, 3%), minus closing costs (1, 3%), minus any agreed repairs or credits. That number is the minimum you can accept and still net what you planned. Use the home equity calculator to verify your equity position and confirm what a given sale price actually puts in your pocket after paying off your mortgage.

Commit to your floor before the negotiation starts. Sellers who set their floor mid-negotiation tend to give ground they did not plan to give.

What Happens When You Decline an Offer

Sellers are not legally required to counter any offer. A written notice of rejection formally closes that negotiation thread and leaves you free to accept other offers. Declining without a counter is appropriate when an offer is so far below your floor that even one counter sends a misleading signal about your willingness to negotiate at that price range.

Per how purchase offer rejections work legally, once you issue a counteroffer, you have rejected the original offer and proposed new terms. The buyer can accept, counter again, or walk. During that window, you remain free to accept a different buyer’s offer entirely. Rules vary by state, so consult your agent or real estate attorney on disclosure requirements in your market. For a full breakdown of what happens when you want to consider other buyers simultaneously, see accepting backup offers while under contract.

5 Mistakes Sellers Make with Lowball Offers

1. Rejecting without countering, walking away from a lowball offer without sending a single counter ends the negotiation permanently. Most real estate agents recommend at least one counter on any offer, regardless of how low it comes in. The buyer may be testing your floor rather than making a final bid.

2. Responding emotionally or with personal remarks, the tone of your counter sets the climate for everything that follows. A response that signals frustration or insult destabilizes the negotiation and gives the buyer a reason to walk. Keep your counter factual: a price, a comp reference, a deadline.

3. Countering at the midpoint between their offer and your ask, this is the most costly tactical mistake in real estate negotiation. Countering at the midpoint signals that you expect to keep splitting the difference, which invites the buyer to do exactly that in the next round. Counter at or near your list price, supported by comparable sales, and let the buyer decide whether to move up.

4. Not setting an expiration date on your counter, a counteroffer without a deadline allows the buyer to sit on your terms while touring other properties. A 24-to-48-hour expiration creates urgency without hostility and forces a real decision.

5. Ignoring non-monetary terms, sellers who focus exclusively on the sale price miss the levers that can close a gap deal: closing cost credits, timeline flexibility, contingency modifications, and appliance inclusions. Each can offset $5,000, $15,000 in price without reducing your recorded sale price.

What If You Want to Skip the Negotiation?

How Cash Buyers Work Differently

Lowball offers work as a tactic because the buyer knows the seller has one option: negotiate with them or wait for another buyer. A cash buyer changes the mechanics of the transaction in two specific ways. First, cash buyers typically skip the appraisal contingency, one of the most common pressure points buyers use to reopen price negotiations after the initial offer is accepted. Second, cash transactions skip the financing contingency, which eliminates the risk of the deal collapsing because the buyer’s lender came in low on the appraisal.

When a Cash Offer Makes More Sense Than Countering

If you have already received one lowball offer and are deciding whether to re-enter the negotiation or seek alternatives, multiple competing cash offers restructure the dynamic entirely. Instead of one buyer testing your floor, multiple buyers compete simultaneously, which eliminates the lowball tactic at the structural level rather than the tactical one.

iBuyer.com connects sellers with multiple vetted cash buyers after a single submission. You receive competing offers, compare them without pressure, and choose the one that works. No repairs required before listing, no agent commissions, and closings typically happen in 7 to 30 days, versus the 30-to-60-day timeline of a financed-buyer negotiation. If you have already received a low offer and want to know what your home is actually worth to a motivated buyer, request your offers through iBuyer.com.

Frequently Asked Questions