How Should You Handle a Low Offer on Your Lake Travis Home?

What should you do when you get a low offer on your Lake Travis home?

First, don’t ignore it and don’t take it personally.

Look at recent sales, review the terms, figure out what you would actually net, and then decide if it makes sense to counter.

Getting an offer below your asking price can be frustrating.

You know what you paid for the home. You know what you’ve spent on improvements. And you know what makes your property special.

But the buyer is looking at it from a completely different point of view.

And even if the offer feels low, it is still an offer from someone interested enough to put something in writing.

That gives you something to work with.

First, Is the Offer Actually Low?

Before reacting to the number, ask one question:

Low compared to what?

Most sellers immediately compare an offer to their asking price.

But your asking price isn’t always the best way to decide whether an offer is reasonable.

The better comparison is what similar homes have actually sold for recently.

Texas Home Sales Can Be Harder to Compare

Texas is a non-disclosure state.

That means home sale prices aren’t part of the public record the same way they are in California.

So the numbers buyers see on real estate websites may be estimates. And the price your neighbor tells you their house sold for may not tell the whole story either.

Your agent can look at closed sales through the MLS and help you compare your home to properties that are actually similar.

Lake Travis Homes Aren’t Always Easy to Compare

Around Lake Travis, Lakeway, and Hudson Bend, homes just a few streets apart can be very different.

Waterfront, water view, and lake access are not the same thing.

Other things can affect value too, including:

• Boat docks and permit status

• Shoreline access

• Septic versus sewer

• Lot size

• Views

• Home condition

• Lake level

• Location within the neighborhood

Because of that, a buyer may be using comps that don’t really match your home.

But sellers can do the same thing by focusing on the highest sale in the neighborhood.

Sometimes an offer really is too low.

Other times, it may be showing you where buyers see the current market.

The important part is knowing the difference before you respond.

Don’t Look at Price Alone

The offer price gets most of the attention, but it’s only one part of the deal.

Two offers at the same price can leave you with very different amounts of money at closing.

That’s why I recommend looking at a seller net sheet before making a decision.

A few terms that matter include:

• Seller concessions. Is the buyer asking you to pay some of their closing costs?

• Option period. A longer option period gives the buyer more time to inspect the home, renegotiate, or terminate.

• Earnest money. A stronger earnest money deposit may show a more committed buyer.

• Financing. Cash, conventional, FHA, and VA buyers can all have different requirements.

• Appraisal terms. What happens if the home appraises below the agreed price?

• Closing date. Does the timing work for your move?

• Possession. Do you need extra time in the home after closing?

These details can matter just as much as the sales price.

Here’s a Simple Example

Let’s say your Hudson Bend home is listed for $950,000.

You receive an offer for $890,000.

The buyer is also asking for $15,000 toward closing costs and wants a 10-day option period.

At first glance, the offer is $60,000 below asking.

But after the $15,000 concession, your net is even lower.

And with a 10-day option period, the buyer still has plenty of time to come back after the inspection and ask for additional repairs or credits.

Now imagine you counter at $925,000, remove the seller-paid closing costs, and shorten the option period to five days.

You moved on price, but you protected more of your net and tightened up the terms.

That can be a much better deal than simply splitting the difference.

What Can You Do With a Low Offer?

You generally have three choices.

1. Counter the Offer

Most of the time, this is where I would start.

A counteroffer keeps the conversation going and gives the buyer a clearer idea of what you would actually accept.

And you don’t have to negotiate only on price.

You can also counter:

• Seller concessions

• Option period

• Earnest money

• Closing date

• Possession

Sometimes giving a little on one term can help you get something better somewhere else.

2. Ask the Buyer To Submit a Better Offer

In Texas, a seller doesn’t always have to send a formal counteroffer.

There is also a form called the Seller’s Invitation to Buyer to Submit New Offer.

This can be helpful when you want the buyer to improve several terms or when you are dealing with more than one interested buyer.

It allows you to tell the buyer what needs to change without locking yourself into a formal counter.

3. Reject the Offer

Sometimes an offer is simply too far off or the terms don’t work.

That happens.

But I usually don’t recommend ignoring the buyer completely.

A short, respectful response keeps the door open.

You never know if that buyer will come back with a stronger offer.

Be Careful With Multiple Offers

If you have more than one buyer interested, the strategy becomes even more important.

You generally do not want to send formal counteroffers to multiple buyers at the same time.

If more than one buyer accepts your counter, you could create a serious contract problem.

This is something to work through carefully with your agent.

Sometimes the better approach is to invite buyers to submit their best revised offer instead.

What Is the Low Offer Really Telling You?

A lower offer isn’t always just a buyer trying to get a deal.

Sometimes the buyer is reacting to something about the property.

Around Lake Travis, that could include:

• Lake level. Buyers may react differently when they tour during lower lake levels.

• Dock condition or permits. Unanswered questions can make buyers nervous.

• Septic system. Age, size, maintenance, and inspection history can matter.

• Insurance costs. An older roof or other property issues may affect insurance.

• Property taxes. A buyer’s future tax bill may be very different from yours.

• Days on market. The longer a home sits, the more buyers may expect negotiating room.

If you can figure out what is driving the buyer’s number, you may be able to address the concern instead of simply dropping the price.

Sometimes providing documentation, inspection information, repair estimates, or other details can help.

Negotiation Tips That Usually Work Better

After years of working through real estate negotiations, there are a few things I’ve found helpful.

Respond fairly quickly.

Buyers may still be looking at other homes. Waiting too long can cause them to lose interest.

Have a reason behind your counter.

Recent comparable sales are much more useful than simply saying, “That’s what I need to get.”

The buyer is thinking about the home’s value, not what you personally need from the sale.

Trade instead of simply giving things away.

If you move on price, ask for something in return.

Maybe that means a shorter option period, fewer seller concessions, more earnest money, or a better closing date.

Don’t automatically split the difference.

Meeting in the middle may sound fair, but that doesn’t mean it makes sense.

Look at the full offer first.

Don’t assume improvements equal dollar-for-dollar value.

If you spent $90,000 improving the backyard, that doesn’t automatically mean buyers will pay $90,000 more for the house.

Improvements can help your home sell, but the market still decides how much value they add.

The Negotiation Isn’t Over Once You Accept

This surprises some sellers.

Agreeing on a price doesn’t necessarily mean that will be your final number at closing.

The buyer may still have an option period.

After the inspection, they could ask for repairs, credits, or a price reduction.

And if they are financing the purchase, the home will usually still need to appraise.

That’s why the terms you negotiate at the beginning matter.

A high offer with loose terms and a long option period may not be as strong as it looks.

A slightly lower offer with solid financing and cleaner terms may be much more likely to close at the agreed price.

Sometimes the First Serious Offer Is Worth Taking Seriously

One thing sellers sometimes regret is dismissing the first serious buyer because they assume something better will come along.

That doesn’t mean you should automatically accept the first offer.

But it does mean you should take a real buyer seriously.

In many parts of the Austin area, buyers have more homes to choose from than they did a few years ago.

That gives them more negotiating power.

If the market doesn’t support your asking price, waiting can sometimes lead to a price reduction later — after you’ve already added more days on market.

A lower offer may simply be the beginning of the negotiation.

The goal is to figure out whether there is a deal there that makes sense for you.

Frequently Asked Questions

Should I counter a low offer or ignore it?

In most cases, I would counter.

Ignoring the offer usually ends the conversation.

A counter lets the buyer know what it would take to make the deal work for you.

How far below asking is considered a low offer?

There is no set percentage.

It depends on what similar homes are actually selling for.

Around Lake Travis, this is especially important because waterfront, water-view, and lake-access homes can have very different values.

The right comps matter more than a general percentage.

Can I accept another offer after I’ve already countered someone?

A counteroffer can generally remain open until it expires or is properly withdrawn.

If another offer comes in while you have a counter outstanding, talk with your agent before accepting anything else.

For questions about your specific contract or legal obligations, a real estate attorney is the right person to advise you.

Before You Respond, Look at the Whole Deal

A low offer can feel personal.

But at the end of the day, it’s a business decision.

Before saying yes or no, look at the recent sales, your estimated net, the buyer’s financing, the option period, concessions, and the rest of the terms.

Sometimes the best move is to say no.

Sometimes it’s to counter firmly.

And sometimes an offer that didn’t look great at first turns into a very good deal once you work through the details.

If you’ve received an offer on your Lake Travis, Lakeway, or Hudson Bend home and aren’t sure how to respond, I’d be happy to help you look at the numbers and talk through your options.

Amanda Zito, REALTOR®
Real Broker, LLC | Serving the Lake Travis area
TX TREC #840088 | CA DRE #01740063
949-484-9486 | soldbyzito.com

This article is for general information only and is not legal, tax, or financial advice. Contract terms and forms can change. Talk with your agent or a real estate attorney about your specific situation.