By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

The first question isn't how to counter — it's whether this is the first low offer or the third. An isolated low number on a home drawing good traffic is usually a buyer testing, and it's worth countering meaningfully. Repeated low offers are something else entirely: three buyers arriving independently at similar numbers are reporting that the price sits above what the market supports, and countering a fourth time defends a figure that's already been rejected three times. The other thing worth checking before reacting is what the offer asks for beyond price, because since August 2024 a buyer who requests no compensation can net a seller more than a higher offer that does.

One Low Offer or a Pattern

Most advice on this subject treats every low offer the same way. The useful first move is deciding which situation you're in, because the correct response differs completely.

An isolated low offer, on a home that's been drawing showings and hasn't been on the market long, is usually a buyer testing flexibility — or a buyer who wants the house and is starting where they hope to land. That's an ordinary negotiation and it's worth engaging.

Repeated low offers are market data. When three separate buyers, working with three separate agents, independently arrive at similar numbers, they are not colluding. They're reporting what the property is worth to the pool currently shopping that range.

A seller who counters the third low offer the same way they countered the first is defending a price the market has now rejected three times. The right response at that point is a pricing conversation, not a negotiation one.

Showing traffic tells you which situation applies. Strong traffic with a single low offer suggests the price is close and one buyer is optimistic. Thin traffic with low offers suggests the home is being filtered out of the searches of buyers who would pay more, and the offers arriving are from bargain hunters rather than from the market. The pricing framework covers how that filtering works, and a listing that has stalled has a fuller diagnosis in what happens when a home doesn't sell.

Read the Whole Offer Before Reacting

Price is the number that provokes a reaction and it's frequently not the number that decides the outcome.

Buyer-agent compensation is now the largest variable after price, and it changes the arithmetic more than sellers expect. Since August 17, 2024, compensation is negotiated within each offer rather than posted. On a $900,000 sale, an offer at $885,000 requesting nothing on the buyer side nets more than an offer at $897,000 requesting two and a half percent. The lower number is the better offer.

Financing terms. A buyer waiving the financing contingency, or offering cash, carries less risk of collapse — worth real money against a higher offer that may not close.

Appraisal gap coverage. An offer committing the buyer to bring additional cash if the appraisal falls short removes a common failure point. A higher offer without it may return to the table weeks later asking for a reduction. The full treatment of how gaps resolve covers what that costs.

Deposit size. Long Island convention is ten percent held in attorney escrow. An offer proposing substantially less signals either limited cash or limited commitment.

Timing and contingencies. A closing date matching the seller's needs, or an offer with fewer conditions, has value that doesn't appear in the price.

The framework for comparing what each offer actually nets works through how these terms stack. Run the net figure before deciding an offer is unacceptable.

How to Counter, and How Not To

The standard advice — counter slightly below asking to keep the conversation open — is usually the wrong move.

A token counter on a genuinely low offer communicates that the seller isn't moving. Buyers read it as a refusal with extra steps, and many stop responding. It also wastes the one exchange in which the seller has the buyer's full attention.

Two responses actually work.

Move meaningfully into the gap. A counter that represents real movement invites a real response. The seller isn't obligated to reach the middle, but the counter has to be large enough to signal that a deal is possible.

Hold firm with the comp set attached. Declining to move is a legitimate position when the price is supported, and it lands very differently when accompanied by the recent closed sales behind it. "The price is the price" ends conversations. "Here are the four comparable sales in the last four months, adjusted for condition" is an argument, and buyers respond to arguments.

The second option is stronger than sellers assume. Buyers making low offers frequently expect resistance and are prepared to move — what they're testing is whether the seller has a basis for their number.

One more thing worth stating: market value is what the comp set supports, not what the seller needs. A counter built on what the seller paid, what they owe, or what they want for the next purchase persuades nobody. A counter built on closed sales persuades the buyer, their agent, and eventually the appraiser.

Where Low Offers Come From

Four sources, and knowing which one helps.

Buyers testing. Common, ordinary, and worth countering.

Buyers who are stretched. Someone who loves the house and can't quite reach the price. These occasionally produce deals through structure — a rate buydown or seller contribution can move a payment further than a price cut, as covered in how interest rates reach sellers.

Days on market. A listing past sixty days attracts low offers by construction. Buyers see accumulated time as evidence of weakness, whether or not it reflects anything about the property. This is the strongest argument for pricing correctly at the outset.

Investors and wholesalers. Some low cash offers come from buyers intending to assign the contract rather than close on it — the price reflects their margin, not the property. Verifying proof of funds and asking whether the buyer intends to close in their own name separates them. The full treatment of evaluating cash offers covers what to check.

A Worked Example

Consider a composite case — a Nassau County seller listed at $875,000, comps supporting roughly $860,000, with fourteen showings in three weeks.

The first offer came at $790,000. His instinct was to counter at $870,000, which would have been a token move against an $85,000 gap.

Instead his agent assembled four closed comparable sales and countered at $862,000 with the comp set attached — real movement, and a documented basis. The buyer came back at $838,000, then met at $851,000.

Worth noting what made the difference: the buyer had been testing. Fourteen showings in three weeks meant the home was reaching the market, so a single low offer was one buyer's opening rather than a verdict.

Had the same offer arrived in week nine with four showings total, the conversation would have been about price rather than about countering.

Where to Start

Establish whether this is the first low offer or part of a pattern, and check showing traffic to interpret it. Run the net figure on the offer including what it requests in compensation, since a lower price asking for nothing can beat a higher one that does. Then either move meaningfully into the gap or hold firm with the comp set attached — a token counter accomplishes neither.

Where low offers are repeating, the conversation is about price. A current read on value is a starting point, and the comp set is what settles it.

The Honest Bottom Line

A low offer is information, and the useful question is what kind. One low offer on a home drawing traffic is a buyer's opening position. Three low offers are a pricing conversation the market has started without you.

Sellers who take the first personally often overreact. Sellers who treat the third as another negotiation lose weeks defending a number that's already been answered.

And before reacting to either, read what the offer actually asks for. Since the compensation decision moved to the seller, the price at the top of an offer is no longer the whole story — and occasionally the lower number is the better deal.

For anyone working through a specific offer, with no pressure attached, that conversation is available whenever the timing suits.

This is general information, not legal or financial advice. Offer terms, contingencies, and contract provisions vary. Consult a licensed New York real estate attorney before responding to or accepting any offer.

FAQs

Should I counter a lowball offer or ignore it?

Counter, in most cases — but how depends on whether it's isolated or part of a pattern. A single low offer on a home drawing good showing traffic is usually a buyer testing, and it's worth engaging. Repeated low offers from separate buyers are market data rather than a negotiating pattern: three people arriving independently at similar numbers are reporting what the property is worth to the current pool. At that point the productive conversation is about price rather than about countering a fourth time.

How should I counter a low offer?

Not with a token move. Countering slightly below asking on a genuinely low offer signals no movement and usually ends the exchange. Two responses work: move meaningfully into the gap, which invites a real reply, or hold firm with the comp set attached. The second is stronger than sellers assume — "the price is the price" ends conversations, while four recent closed sales adjusted for condition is an argument, and buyers respond to arguments. Market value is what the comps support, not what the seller needs.

Can a lower offer actually be better than a higher one?

Frequently, and this is more true since August 2024. Buyer-agent compensation is now negotiated within each offer rather than posted, so an offer at $885,000 requesting nothing on the buyer side nets more than one at $897,000 requesting two and a half percent. Beyond that, a waived financing contingency, appraisal gap coverage, a full ten percent deposit, or a closing date matching the seller's needs all carry real value. Run the net figure on every offer before deciding one is unacceptable.

Why am I getting lowball offers?

Four common sources. Buyers testing flexibility, which is ordinary. Buyers who want the home and are stretched, where a structured concession may bridge the gap better than a price cut. Days on market — a listing past sixty days attracts low offers by construction, since buyers read accumulated time as weakness. And investors or wholesalers, some of whom intend to assign the contract rather than close, where the price reflects their margin rather than the property.

What does days on market have to do with low offers?

A great deal. Buyers see accumulated time as evidence that a seller will negotiate, whether or not it reflects anything about the property. A listing past sixty days attracts lower offers by construction, and the effect compounds — each additional week strengthens the buyer's read. That's the strongest practical argument for pricing correctly at the outset rather than starting high and adjusting, since the first two to three weeks are when the most motivated buyers see a listing.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com