8 Times to Accept a Lowball Offer

Common wisdom says that if a house has been on the market for a long time, there must be something wrong with it. While that may not always be the case, it is true that if your house has been listed for months and months, you may want to rethink your asking price. Realtor Tony Harrington notes that “buyers who make low offers go after the listings that have languished on the market for months, believing they can snap them up at a discount as competition dries up.” If your stale house listing isn't attracting a lot of other bites, that low-offer mentality could be justified—in which case, you might want to consider making a deal.

Related: 8 Red Flags to Look For in a Real Estate Listing

For most people, a home is the single biggest asset and investment that they'll ever own—and they can’t afford to pay the mortgage, taxes, and upkeep on two residences. If you are carrying two homes and need to unload one, a lower offer may begin to sound a little more appealing. 

Related: 9 Ways Your Neighbors Can Screw Up Your Home Sale

The real estate market is cyclical and changes according to the familiar economics of supply and demand. In a seller's market, available real estate is scarce and potential buyers are abundant, but in a buyer's market, it's the potential buyers who have their pick of a glut of properties. When supply is up, home values go stagnant or decrease, which means that a lowball offer could be the best you'll be able to do.  

Related: 11 Myths Home Buyers Should Never Believe

Not every real estate agent is a star performer—or even competent. The reality is that you may have to accept a lowball offer if your real estate agent fixed your home at an unrealistic price. Richard Montgomery of the Dear Monty column recommends that if your agent claims you're living in a buyer's or seller's market, ask the agent to "prove it to you with the facts. Many agents will be surprised to learn their opinion and the facts do not line up.” If it turns out the agent has mistakenly overpriced your home, recover gracefully and give serious thought to the lowball offer on the table.

Related: Buyer Beware: 9 Real Estate Scams to Watch Out For

Almost all real estate experts agree—don't reject a lowball offer out of hand. Instead, use this offer as a starting point for negotiations with the potential buyer, with the ultimate goal of arriving at a mutually acceptable—and fair—price. Lisa Priest of Palestine Real Estate recommends responding with a more reasonable counteroffer. If the buyer bites, great. If not, he probably wasn't serious anyway.

Related: 9 Quick Fixes for a Faster Home Sale

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