How to Respond to a Low Ball Offer on Your Austin Home

Selling your home in Austin is an exciting process, but it can also bring unexpected twists. While news of multiple offers and homes selling above asking price used to dominate the conversation, today’s more balanced market brings a new challenge: the “low-ball” offer.

Receiving an offer that’s significantly below your asking price can feel frustrating, even insulting. However, the most successful sellers know that a low offer isn’t the end of the road—it’s the start of a negotiation. This guide will walk you through how to handle a low-ball offer professionally, keep your emotions in check, and turn a seemingly weak proposal into a successful sale.

Why Do Buyers Make Low-Ball Offers?

The first step in responding effectively is to understand the buyer’s motivation. While it’s easy to assume they’re just trying to get a steal, there are often other factors at play. In our experience, low-ball offers typically come from two types of buyers:

1. The Uninformed Buyer: Some buyers, especially those from out of state or new to the market, may not have a firm grasp of the current Austin real estate landscape. They might be operating on outdated information or advice that doesn’t apply to our unique market. Their offer isn’t meant to be insulting; it’s simply a reflection of their limited knowledge.
2. The Strategic Negotiator: This buyer is testing the waters. They want to gauge your flexibility and see how you’ll react. By starting low, they create room for negotiation and hope to land on a price that feels like a “win.” They’ve likely seen your home, love it enough to write an offer, and are simply trying to secure it for the lowest possible price.

In either case, the buyer has shown genuine interest. They took the time to view your property and put pen to paper. That action alone signals they see potential, and it’s your first clue that a deal might be possible.

Put Your Emotions Aside: The Key to Successful Negotiation

It’s completely normal to feel a surge of frustration or even anger when you see a low-ball offer. You’ve invested time, money, and emotional energy into your home, and an offer that feels dismissive can be deflating. You might think, “They’re not serious,” or “This is a waste of time.”

While these feelings are valid, letting them guide your response is one of the biggest mistakes you can make. Successful negotiations are built on logic, not emotion. By taking a step back and approaching the situation with a clear head, you open the door to a potentially positive outcome.

Think of it this way: selling your home is a business transaction. Your goal is to get the best possible price and terms. A professional, unemotional response is your most powerful tool to achieve that goal.

Why You Should Always Respond to a Low-Ball Offer

A common question we hear from sellers is, “Why should I even bother responding? This buyer is clearly not serious.” The answer is simple: you have nothing to lose and everything to gain.

An initial offer is just a starting point. Many buyers who begin with a low offer are fully prepared to increase it. They are waiting for your counteroffer to see if there’s a path forward.

• If you don’t respond: The buyer will likely feel rejected and move on. They may assume you’re unwilling to negotiate at all. In this scenario, you’ve lost a potential buyer without ever knowing what they might have been willing to pay. We’ve seen it happen time and again—a buyer who was willing to pay more gets insulted by the lack of a response and walks away.
• If you respond: You keep the conversation going. A thoughtful counteroffer signals that you’re open to negotiation, even if you’re firm on your price. This invites the buyer to come back with a more reasonable number. Many times, what starts as a low-ball offer evolves into an acceptable contract.

By responding, you maintain control of the negotiation and show that you’re a serious seller operating in good faith.

How to Strategically Respond to a Low-Ball Offer

So, what does a strategic response look like? It’s not about meeting them in the middle or drastically dropping your price. It’s about re-anchoring the negotiation and professionally communicating your position.

Here are three effective strategies:

1. The Firm Counteroffer (Without Budging on Price)

If the offer is offensively low, you don’t have to lower your price at all. A great strategy is to send back a counteroffer at your full asking price.

How it works: This sends a clear, unemotional message: “Thank you for your offer. Our price is firm, but we are willing to negotiate.” By countering at your list price, you’re indicating that their initial number is not a realistic starting point for this conversation. You’re inviting them to come back with a serious offer if they truly want the property.

Why it works: It avoids the emotional reaction of rejecting the offer outright. It keeps the door open and puts the ball back in the buyer’s court. Often, a serious buyer will understand the message and return with a much more reasonable offer.

2. The Slight Price Concession

If you have a little room to move and want to show some flexibility, you can counter with a small reduction in your asking price.

How it works: Counter with a price that is very close to your list price. For example, if your home is listed at $750,000 and the offer is $680,000, you might counter at $745,000.

Why it works: This strategy shows you’re willing to engage, but it also signals that you won’t be making any significant price drops. It’s a professional gesture that encourages the buyer to come up substantially while demonstrating you know your home’s value.

3. Focus on Terms, Not Just Price

Sometimes, the best negotiation tool isn’t price—it’s the other terms of the contract. If a buyer’s offer is low but they’re flexible in other areas, you can leverage that to your advantage.

How it works: When you counter, hold firm on your price but offer concessions on other terms. For example, you might agree to:

• A quicker closing date.
• A more flexible leaseback period.
• Covering a portion of the buyer’s closing costs (if it makes financial sense).

Why it works: This approach can create a win-win situation. The buyer feels like they’ve gained something in the negotiation, even if the price didn’t move much. For you, these concessions may be less costly than a significant price reduction, allowing you to get closer to your desired net proceeds.

Not Every Negotiation Ends in a Contract

It’s important to acknowledge that even with the best strategy, not every low-ball offer will turn into a sale. Some buyers genuinely have a maximum price they can pay, and if it doesn’t meet your needs, it’s okay to walk away.

The goal of negotiating is to see the process through to its logical end. By responding professionally and unemotionally, you’ll discover whether a deal is possible. If you and the buyer can’t find common ground, you can move on with confidence, knowing you explored every possibility and didn’t leave money on the table.

The Bottom Line: Stay Calm and Counter

In our 60+ years of combined experience in Austin real estate, we’ve seen this scenario play out countless times. Sellers who refuse to respond to low-ball offers almost never sell to that buyer. Sellers who take the high road and respond unemotionally, however, frequently end up with a contract they are happy with.

Don’t let an initial number derail your home-selling journey. View it as the first step in a conversation, take a deep breath, and respond with a clear, strategic counteroffer. The worst that can happen is you don’t reach an agreement. The best that can happen is you successfully sell your home for a great price.

Considering Selling Your Austin Home?

Navigating offers and negotiations is just one part of the home-selling process. With our proven marketing program and deep expertise in the Austin market, we can guide you through every step with minimal stress, ensuring you sell your home faster and for more money.

If you’re ready to work with a team that has seen it all, let’s talk.

Contact us today for a no-obligation consultation.
Call us at (512) 827-8323, email us at info@11OaksRealty.com, or fill out our Seller Survey to get started.

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