Saving the Deal: Coaching sellers through lowball offers

Why rejecting a low offer too quickly can cost sellers dearly

Few moments frustrate homeowners more than receiving what they believe is an insulting offer on their property. But experienced estate agents warn that emotionally rejecting a low offer immediately can sometimes result in sellers losing out on a deal that may ultimately have worked in their favour.

According to Antonie Goosen, principal and founder of Meridian Realty, lowball offers are often part of the negotiation process rather than a definitive reflection of a property’s true value. “Buyers are naturally trying to secure the best possible deal,” says Goosen. “An initial low offer does not always mean the buyer is unserious or unwilling to negotiate meaningfully.”

Goosen says one of the most important roles of an estate agent is helping sellers separate emotion from strategy during negotiations. “A property is deeply personal to most homeowners. Sellers often attach years of memories, effort, and financial investment to the home, so low offers can feel offensive.”

However, he says successful negotiations usually depend on remaining calm and objective. “The key is understanding that the first offer is rarely the final outcome. Negotiation is a process.”

According to Goosen, the first step is evaluating the quality of the buyer rather than focusing only on the offer amount. “We look at whether the buyer is financially qualified, whether they have bond pre-approval, how flexible their timelines are, and how serious their intent appears.”

A financially strong buyer making a conservative opening offer may still represent an excellent opportunity. “Sometimes highly qualified buyers intentionally start low to test the seller’s flexibility. That does not mean they will not move substantially during negotiations.”

Goosen says sellers should avoid responding emotionally or dismissively. “The moment communication breaks down completely, both parties often lose the opportunity to explore common ground.” Instead, he advises sellers to counter strategically while maintaining engagement. “A professional counteroffer keeps the conversation alive. Once negotiations continue constructively, both parties usually begin moving closer together.”

He says market conditions also matter when assessing low offers. “In a slower or more balanced market, sellers may need to recognise that buyers have more negotiating power than they did during stronger market cycles.” Another critical factor is how long the property has already been on the market. “If a property has been listed for several months without meaningful interest, even a lower offer may deserve careful consideration because it provides valuable momentum.”

Goosen says many sellers underestimate the risks associated with waiting indefinitely for a perfect offer. “There is always a danger that a property becomes stale in the market. Buyers begin wondering why it has not sold, and future negotiations may become even more difficult.” He says agents should also help sellers analyse the full structure of the offer rather than headline price alone. “A slightly lower offer with fewer conditions, stronger financing, and faster timelines can sometimes be significantly better than a higher but riskier offer.”

He says realistic pricing from the beginning also reduces emotional friction later in negotiations. “When sellers enter the market with unrealistic expectations, every offer feels disappointing. Correct pricing creates healthier negotiation dynamics from day one." He believes patience and perspective are essential during property negotiations. “A low offer is not necessarily a failed opportunity. In many successful transactions, both parties initially started far apart before eventually reaching a fair agreement.”

Goosen says experienced agents understand that negotiation psychology is often as important as pricing itself. “The goal is not to win an emotional battle. The goal is to achieve the best realistic outcome for the seller while keeping serious buyers engaged.”

According to Jacques Vorster, Principal of Century 21 Helderberg, Stellenbosch, Hermanus & Kleinmond and surrounds, says: " I always remind sellers that an offer is not an insult — it’s a starting point. Emotions can become expensive very quickly in real estate. Sometimes the worst thing a seller can do is react emotionally and shut the door completely.

"I usually sit them down and break the situation into facts instead of feelings. How long has the property been on the market? What feedback are we getting from buyers? What are similar properties actually selling for — not listed for — but selling for?"

And sometimes Vorster says he will remark: “A bad first offer is still better than no offer and another month of rates and levies.”

He adds that a lot of successful deals start awkwardly. "My job is to negotiate the gap and keep everybody talking. The moment communication stops, deals dies," he says. 

For Morné Prinsloo, Residential Property Specialist RE/MAX Town and Country Roodepoort & Krugersdorp, a lowball offer lands and the seller's first reaction is almost always emotional. "They feel insulted. After everything they have put into the property, after opening their home to strangers at show days, after the months of waiting, a number that feels disrespectful is genuinely hard to receive.

"My job in that moment is not to dismiss the seller's reaction, but to get them to the point where they can look at the offer rationally rather than react to it emotionally. Because some of the best deals I have been part of started as lowball offers," he says. 

First: I Let the Seller React

"I do not immediately start explaining why the buyer's offer might not be as bad as it looks. I give the seller a moment to express their frustration. Telling someone to calm down in the moment they receive a number they consider offensive does not help anything. Acknowledging their reaction and then redirecting the conversation toward the facts is a better approach," he says. 

Then: I Put the Number in Context

"Once the initial reaction has passed, I bring the data. I remind the seller of the current market conditions. In the South African residential market right now, 70 to 80 percent of properties are selling below asking price, and discounts of 5 to 10 percent from the original list price are the norm. That context matters. A seller who understands that the buyer's opening position is not personal, it is the expected behaviour of a buyer in a market where they hold some leverage, is better equipped to respond strategically rather than emotionally.

"I also show the seller the comparable sales data again. What have similar homes in the suburb actually sold for in the past 60 days? If the comparable sales support the asking price, the counter-offer can be made confidently. If the comparable sales show that the asking price is already at the top of what the market will support, the conversation about the offer needs to be more nuanced," he says. 

The Counter-Offer: Firm, Specific, and Unemotional

"A counter-offer is not a rejection. It is a negotiation. I always recommend that a seller respond to a lowball offer with a specific, well-reasoned counter-offer rather than simply declining. A decline closes the conversation. A counter-offer opens it. The counter-offer should be based on what the seller genuinely needs to achieve and what the market data supports. I help the seller find that number by working backwards from their financial position: what is the minimum they need to walk away from the transaction in a position that allows them to proceed with their next move? That figure, grounded in reality rather than pride, is the foundation of a strong counter.

"I also advise sellers to counter on price without immediately offering concessions on other terms. Occupation date, inclusions, and other conditions can all be used as negotiating tools later in the process. Conceding on everything at once leaves nothing to trade," he says.

What Walking Away Actually Costs

"When a seller is tempted to reject rather than counter, I walk them through the cost of that decision. The property goes back to active marketing. The next showing could come in a week or it could come in two months. In the meantime, the seller continues carrying the property. The bond, rates, insurance, levies if applicable, and maintenance costs all continue accumulating. A gap of R50,000 between the lowball and an acceptable price, when weighed against two or three months of carrying costs and the possibility of a lower offer arriving later, often looks very different.

"Most sellers who walk away from their first offer wish they had counter-offered. A deal that is already at the table is worth more than a hypothetical better offer that may or may not arrive," he says.