Should you accept a lower offer? When to negotiate and when to hold firm
Receiving an offer on your home is always a milestone – but what happens when the offer comes in below your asking price? Should you accept it, counter it, or wait for something better?
Putting your home on the market often comes with high hopes and clear expectations. So when an offer comes in below your asking price, it can feel disappointing or even frustrating. But a lower offer isn’t necessarily a bad sign — in fact, it can sometimes be the starting point of a successful negotiation. Understanding when to take a firm stance and when to consider flexibility is key to making the right decision for your circumstances.
Understand the Buyer’s Position
Not all lower offers are equal. Try to understand who the buyer is and why they’re offering below asking. Are they cash buyers? Is the offer chain-free? Are they trying their luck, or is the market truly dictating a lower value? A slightly lower offer from a highly proceedable buyer may be worth more in real terms than a higher offer from someone in a long, uncertain chain.
Consider How Long You’ve Been on the Market
If your property has only been listed for a few weeks, you may feel comfortable holding out. However, if it’s been several months with limited interest or multiple price reductions, it may be worth viewing a lower offer more seriously. The key is to balance patience with realism and listen to what market feedback is telling you.
Know Your Bottom Line
Before entertaining any offers, it’s wise to have a clear minimum figure in mind – a number that still allows you to make your onward plans achievable. If a buyer’s offer doesn’t meet that threshold, you can negotiate firmly or decline confidently. But if the offer is close to your bottom line, consider whether a small compromise now might ultimately help you move forward more quickly and smoothly.
Factor in the Market Conditions
Is it a buyer’s market or a seller’s market? In a slower market, achieving 95% of the asking price might be a strong result. In a hotter market, you may have more leverage to hold firm. Your agent should be advising you based on current comparables, recent sales and buyer demand in your price bracket.
Use Negotiation Strategically
A lower offer doesn’t mean you need to accept or reject outright. A well-considered counteroffer often leads to a figure both sides are happy with. You could, for example, agree on a price but negotiate shorter timeframes, exclusivity, or the inclusion/exclusion of fixtures. Good negotiation isn’t just about money – it’s about terms.
Timing Can Make or Break a Deal
If you’ve found a property you want to buy or need to move within a certain timeframe, accepting a slightly lower but secure offer may be the more sensible choice. Peace of mind and certainty can sometimes be more valuable than holding out for an extra few thousand pounds.
Final Thoughts
Ultimately, there’s no universal rule when it comes to lower offers. The decision to accept, negotiate or walk away depends on your priorities, your timeline and the current market. A trusted estate agent should help you weigh up the pros and cons with objectivity, not emotion.
If you’re unsure how to respond to an offer, By Design is here to guide and advise – always with your best interests at heart. Please do get in contact and our team would be happy to help.
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