By Natalie Novarro, REALTOR®
Sotheby’s International Realty – Beverly Hills
Serving the Hollywood Hills • Sunset Strip • Surrounding Los Angeles Neighborhoods
You’ve listed your Hollywood Hills home, waited for an offer—and one finally comes in.
The problem?
It’s lower than you expected.
Maybe a lot lower.
It can be tempting to immediately reject it. After all, if a buyer comes in well below your asking price, why even bother responding?
But I wouldn’t necessarily look at it that way.
A low offer isn’t always a bad offer. Sometimes it’s simply the beginning of a negotiation.
The more important question is whether there’s a realistic path from the buyer’s opening offer to a price and set of terms that make sense for you.
Here’s what I would consider before deciding whether to accept, reject, or counter a low offer on your Hollywood Hills home.
1. How Low Is the Offer, Really?
“Low” can mean very different things.
An offer that’s 2% below asking is very different from one that’s 15% below asking.
But I also wouldn’t look at the percentage alone.
The first thing I’d want to determine is how the offer compares with the home’s likely market value—not simply the asking price.
If a home is competitively priced and receives an offer substantially below market value, that’s one situation.
If the property has been on the market for a while and comparable homes are selling below your asking price, that’s another.
Your list price is important.
But ultimately, the market determines what buyers are willing to pay.
2. Don’t Let the First Number End the Conversation
Sellers can understandably take a low offer personally.
I wouldn’t.
An offer is information.
The buyer has taken the time to write an offer and put a number on paper. That tells us they may have genuine interest in the property.
Now we need to find out whether they’re simply testing the seller or whether that number represents the absolute maximum they’re willing to pay.
One way to find out?
Counter them.
A buyer who starts low may have plenty of room to move.
Rejecting the offer immediately can end a negotiation before you know where it might have gone.
3. How Long Has Your Home Been on the Market?
Timing matters.
If your Hollywood Hills home has been listed for three days, you’ve had significant showing activity, and other buyers are expressing interest, you may have more leverage to hold firm.
If the home has been on the market for several months with limited activity, I’d look at the offer differently.
That doesn’t mean you need to accept a price you’re uncomfortable with.
It means the offer should be evaluated in the context of what has happened since the property was listed.
Ask:
How many showings have we had?
Have other buyers expressed serious interest?
Have we received previous offers?
What has buyer feedback been?
Have comparable properties sold since we listed?
Has new competition entered the market?
Days on market alone doesn’t determine whether an offer is good or bad, but it can affect your negotiating position.
Related: Should I Reduce the Price of My Hollywood Hills Home?
4. Do You Have Other Interested Buyers?
This can completely change the strategy.
If we know two other buyers are seriously considering the home, I’m going to negotiate differently than I would if there hasn’t been another interested buyer in three months.
That’s why communication with showing agents matters.
When an offer arrives, I want to know what else is happening around the property.
Are there recent showings we should follow up on?
Is another agent preparing an offer?
Has someone asked to come back for a second showing?
Interest from other buyers can give a seller significantly more leverage.
But I also wouldn’t pretend we have competition when we don’t.
Good negotiation should be based on the actual situation.
Related: Should You Sell Your Hollywood Hills Home Off-Market or Put It on the MLS?
5. Look at More Than the Purchase Price
The highest-priced offer isn’t always the strongest offer.
There are other terms that can have real value to a seller.
For example:
- Is the buyer paying cash or financing?
- How large is the down payment?
- Is the buyer fully pre-approved?
- What contingencies are included?
- How long are the contingency periods?
- What closing date is the buyer requesting?
- Is the buyer asking for credits or concessions?
- Does the seller need flexibility after closing?
- How strong is the buyer financially?
Suppose one buyer offers slightly less but has strong financing, clean terms, and a closing timeline that works perfectly for you.
Another buyer offers more but includes terms that create considerably more uncertainty.
The second offer isn’t automatically better.
Price matters enormously, but the entire offer matters too.
6. What Will You Actually Net?
This is another number I want sellers to pay attention to.
Your sale price and your net proceeds are not the same thing.
A buyer might offer a higher price but request a large credit or other concessions.
Another buyer may offer slightly less with cleaner terms.
Before making a decision, I like to look at what the seller is actually expected to walk away with under the different scenarios.
Sometimes the difference between two offers is much smaller than it initially appears.
7. Consider Why the Buyer Came in Low
There may be a strategy behind the buyer’s offer.
Maybe they think the property is overpriced.
Maybe they’re factoring in renovations.
Maybe another comparable property recently sold for less.
Maybe they simply believe every negotiation should begin with a low number.
Or maybe this really is the most they can afford.
If possible, I want the buyer’s agent to give me some context.
Understanding the reasoning behind the offer can help determine how aggressively we should counter and where there may be room to negotiate.
8. Your Motivation Matters Too
There is no universally correct response to a low offer because every seller’s situation is different.
A seller who needs to close quickly may evaluate an offer differently from someone who is perfectly comfortable waiting another six months.
Your next move matters.
Your timing matters.
Your financial goals matter.
And your tolerance for the possibility that the current buyer walks away matters.
Before responding to an offer, I want to understand:
What happens if we say no?
If you’re comfortable keeping the home, waiting for another buyer, or even taking it off the market, you may have more flexibility to hold firm.
If selling now is important, keeping a qualified buyer engaged may deserve more consideration.
9. Sometimes the Best Response Is a Strong Counteroffer
You don’t have to choose between accepting a low offer and rejecting it.
There’s a third option:
Counter it.
A counteroffer allows the seller to communicate that the buyer’s opening number isn’t acceptable while keeping the negotiation alive.
And I wouldn’t necessarily split the difference automatically.
The counter should reflect the property’s value, the seller’s priorities, the amount of other buyer interest, and the overall negotiating situation.
Sometimes a small move is appropriate.
Sometimes a larger move can help bring the parties together.
Sometimes holding firm is the right strategy.
There isn’t a formula that works for every transaction.
10. Know When It Makes Sense to Walk Away
Not every offer is worth chasing.
If a buyer is nowhere near a realistic price, has weak financing, includes problematic terms, or shows little willingness to negotiate, walking away may be the right decision.
The goal isn’t to make every offer work.
The goal is to determine whether there is a deal worth pursuing.
That’s an important distinction.
A Low Offer Can Still Become a Good Sale
I’ve always believed sellers are better served by evaluating an offer strategically rather than emotionally.
You don’t have to like the buyer’s opening number.
You also don’t have to accept it.
But if the buyer is qualified and genuinely wants the property, I usually want to understand how much room there is to negotiate before closing the door.
The first offer isn’t necessarily where the negotiation ends.
Sometimes it’s simply where it begins.
Frequently Asked Questions
Should I reject a low offer on my house?
Not necessarily. Before rejecting it, consider the buyer’s qualifications, how far the offer is from a realistic price, your other buyer activity, days on market, comparable sales, and whether the buyer appears willing to negotiate.
Should I always counter a low offer?
No. Some offers may be too far apart or contain terms that make a transaction unlikely. But if the buyer is qualified and genuinely interested, a counteroffer can be a useful way to determine whether there is a realistic deal to be made.
How much should I counter a low offer?
There is no standard percentage. Your counter should take into account the property’s likely market value, your asking price, other buyer interest, recent comparable sales, days on market, and your own motivation to sell.
Does a cash offer make a low offer better?
Cash can make an offer attractive because financing-related uncertainty may be reduced, but cash alone doesn’t make an offer good. Price, contingencies, timing, proof of funds, concessions, and your overall net proceeds should all be considered.
Should I take a lower offer if my home has been on the market for a long time?
Days on market is one factor, but it shouldn’t be considered in isolation. Look at showing activity, buyer feedback, recent sales, current competition, previous offers, and whether market conditions have changed since you listed.
What if I counter and the buyer walks away?
That’s always a possibility. Before countering, consider your leverage, how much other interest exists, how important the sale is to you, and whether you’re comfortable losing the buyer if you can’t reach mutually acceptable terms.
Thinking About Selling Your Hollywood Hills Home?
If you’re selling a Hollywood Hills home—or considering putting one on the market—there’s much more to evaluating an offer than simply looking at the price at the top of the page.
The buyer’s qualifications, contingencies, timing, concessions, competition, market conditions, and your expected net proceeds can all affect whether an offer deserves serious consideration.
I specialize in luxury and architectural homes throughout Los Angeles, with a focus on the Hollywood Hills and Sunset Strip.
If you’d like to discuss your property, pricing strategy, or how I would approach negotiating a sale, visit the Contact page or call/text 323-719-3360.
I’m always here to help.
About the Author
Natalie Novarro is a real estate agent with Sotheby’s International Realty in Los Angeles, specializing in the Hollywood Hills and Sunset Strip.
With over 20 years of experience and more than $100M in career sales, she works with buyers, sellers, and investors throughout Los Angeles.
For more information or to get in touch, visit the Contact page or call/text 323-719-3360.