When you’re dealing with a seller whose home has been on the market for some time, the first offer is a glimmer of hope. However, that hope can quickly be followed by frustration when the buyer sends a below-list or lowball offer based on days on market.
Bringing the price up from a below-list offer is a different strategy and requires a different skillset than working with a seller who receives an offer (or multiple offers) at or above list price in Week 1. When handling lowball offers, the seller’s motivation and expectations really come into play.
During my sales career, mastering the art of the counteroffer has been a very powerful and necessary component to getting a contract over the finish line. I’m a firm believer that you should always send a counter. Here’s how to make sure it has the best chance of success.
7 things to consider and discuss with your seller before you counteroffer (or worse, don’t counter)
1. Who is the buyer’s agent?
If you already know the agent, you may have some solid insight into their negotiating style and professional experience. If you don’t, look at the data on past results for the agent you’re working with to get a sense of how they normally negotiate and how successful they’ve been in getting lowball offers to land.
2. What is the buyer’s motivation?
Obviously, a conversation with the agent on the other side of the table is a must. Getting the background on how they’ve developed their offer price and terms provides you with invaluable insight into the buyer’s motivation and the seriousness of their initial offer.
3. Who’s the buyer, and how strong are they?
Is this a solid offer? Is the buyer pre-approved? Cash-heavy? Motivated? Is anyone else like this buyer walking through the door anytime soon? Don’t be dazzled by big numbers alone; strong buyers with fair terms are the ones who are more likely to close.
4. What is the market saying about the listing?
Look at relevant comps in the area that have recently gone into escrow. Why didn’t those buyers write an offer on your listing? Is the listing priced to get attention or priced to feed your seller’s personal preference? Is the listing unique, so you and the client both knew from the start that it would take some time to sell and get the right price?
Next, focus beyond pricing, and look at product and positioning to determine if there are upgrades or marketing strategies that you still need to explore.
5. What is the traffic telling us?
If you’re not getting any showings, that’s another conversation entirely.
If you are getting showings, what is the real feedback — the good, the bad and the ugly — from those buyers and agents? Make sure you are getting unfiltered feedback, so you can isolate what’s pushing buyers away.
6. Are we prioritizing ego over progress?
Is this offer close enough to move the ball forward, or are we digging in our heels to “win” the negotiation? What does the seller really want: maximum price, low days on market, less hassle? Does the seller really want to sell at all? Sometimes people feel conflicted and act out by rejecting otherwise reasonable offers.
This may also be a time to talk about the potential of an iBuyer, such as EasyStreet, Opendoor or Wedgewood Homes, with your client. Agents can work with investors to see if they’re open to submitting a cash offer, knowing that the offer may be below the list price.
We know that cash buyers review all the listings as they hit the market, but if it doesn’t fit their buy box, they don’t write an offer. Reaching out to them and building a relationship for times like this is to the seller’s benefit, giving them options to consider (and possibly even multiple counteroffers, depending on your strategy) if their focus is more on timing and convenience than price.
7. What happens if we say nothing?
Not countering at all sends a negative message. In a balanced or buyer-leaning market, buyers expect some type of response, and silence can kill a deal. Even a modest counter keeps the door open and puts the ball back in their court. Don’t let your seller get offended and go silent out of anger or hurt feelings.
As markets shift and normalize, understanding how to counter is a foundational part of negotiation, especially for newer agents who’ve never really experienced active buyer or balanced markets. Work on your skills, set expectations and communicate clearly throughout the deal-making process for standout results.
The counteroffer is more than a simple yes or no response — it’s a negotiation tool that protects value, manages expectations and keeps deals moving. In a buyer-driven market, the counteroffer helps sellers maintain leverage while demonstrating a willingness to negotiate in good faith.
By understanding your listing, the buyers and the market, you can craft counteroffers that achieve the best outcome, whether that’s maximizing price, speeding up a sale or securing the right buyer for your client.
Troy Palmquist is the founder and principal at HomeCode Advisors. Connect with him on LinkedIn.
