Low First Offer? A 24-Hour Plan for London, Ontario Sellers

Low First Offer? A Calm 24-Hour Plan for London, Ontario Sellers

A low first offer on your London, Ontario home is information, not a verdict. Before you respond, compare the whole agreement (price, deposit, conditions and closing date), test it against current listings and recent sales, set your walk-away point, and then accept, sign back or decline before the offer’s irrevocable deadline.

By Jim Straughan, Broker, INITIA Real Estate Brokerage, London, Ontario. Licensed since 1990. Last updated: October 1, 2026.

You have prepared the home, kept it showing-ready, and waited for someone to choose it. Then the first offer arrives—and the number makes your stomach drop.

Before you decide that a buyer is being unreasonable, or that the sale is already off track, give yourself something more useful: a calm process. In London and the surrounding area, buyers have had more homes to compare. That changes the conversation, but it does not mean a seller has to react from disappointment or accept terms that do not work.

The best response to a low first offer is rarely instant. It is informed, deliberate, and tied to the move you are actually trying to make.

Key takeaways

Judge a low first offer on the whole agreement, not just the price: deposit, conditions, closing date, inclusions and your estimated net proceeds all matter.
Compare it with current competing listings and the most comparable recent sales, not with last spring’s prices or broad averages.
In August 2026, the London and St. Thomas region had 6.3 months of inventory, which LSTAR described as showing signs of a buyers’ market.
You have three clean responses: accept, counter (sign back) or decline. In Ontario, the seller makes that decision, not the agent.
Protect your next move: closing date, possession and a backup plan belong in the negotiation from the start.

In this guide

Separate the number from the whole offer
Test the offer against today’s London market
Your 24-hour decision frame
Three clean ways to respond to a low first offer
Protect the next move while you negotiate
A first offer is information, not a verdict
The experience behind this guide
Frequently asked questions

First, separate the number from the whole offer

With a low first offer, the purchase price is important, but it is only one line in a much larger agreement. A lower-than-expected offer may include a cleaner closing date, a strong deposit, fewer conditions, or inclusions that make the move easier. A higher number can carry financing uncertainty, a lengthy inspection condition, or a closing date that leaves you scrambling.

Ask your broker to lay out the complete picture in plain language:

What are the price, deposit, conditions, and deadlines?
Is the buyer’s financing or current-home sale a factor?
What closing date are they proposing, and does it suit your next step?
Which chattels, fixtures, or repairs are they asking for?
What would your estimated net proceeds be after the costs that apply to your sale?

This is the moment to look past the headline. You are not choosing a number in isolation; you are choosing the certainty and shape of your transition. It is the same reason the highest offer isn’t always the best offer.

Then test the offer against today’s competition—not last spring’s memories

Here is what the London and St. Thomas market looked like in August 2026, the latest monthly figures available as of October 1, 2026. The London and St. Thomas Association of REALTORS® (LSTAR) covers Middlesex and Elgin counties, including London, St. Thomas and Strathroy-Caradoc.

Measure, August 2026	Figure	Source
Months of inventory	6.3 (a new peak)	LSTAR
Homes sold	526	LSTAR
New listings	1,403	London Free Press
Sales-to-new-listings ratio	37.5% (below the 45%–65% range CREA considers balanced)	LSTAR
Median days on market	28 (30 a year earlier)	London Free Press
Sale-to-list price ratio	97.1%	London Free Press

LSTAR described August as showing signs of a buyers’ market. Those figures describe a market where buyers can compare, take a second look, and negotiate. They do not determine the value of your particular home. In that kind of market, a low first offer is a starting point for comparison, not the final word.

Your home may have a layout, location, lot, updates, or accessibility features that make it stand out. Equally, buyers will notice active listings that meet a similar need. The right question is not “Do I like this offer?” It is “How does it compare with current, relevant alternatives and recent sales?”

That comparison should be specific: same neighbourhood where possible, similar home type, condition, size, and features—not broad averages that can hide meaningful differences.

Give yourself a 24-hour decision frame

An offer deadline can be short, but a short deadline does not require a rushed mindset. Use the time before the offer’s irrevocable deadline to work through four decisions.

What is our walk-away point? Decide on the lowest price and terms you could genuinely live with, based on your finances and next-home plan—not on an emotional need to “win.”
What do we want to improve? You may care most about price, a later closing, a larger deposit, fewer conditions, or keeping an item in the home. Identify the two or three terms that matter most.
What does the evidence support? Review the current competing listings and the most comparable recent sales. This keeps a counteroffer defensible and purposeful.
What happens if we say no? Consider the realistic path: more showings, a possible price adjustment later, or waiting for another buyer. Knowing the alternative makes the decision feel less like a leap.

By the end of that review, you can respond to a low first offer with confidence rather than reacting to the first feeling it created.

Three clean ways to respond to a low first offer

Most offers lead to one of three sensible paths. In Ontario, the decisions about how offers are responded to, and which offer is accepted, are yours, as RECO’s guidance for sellers makes clear. Your broker advises; you decide.

Accept

Accept when the full agreement meets your needs and the buyer appears capable of closing. A fair, dependable agreement can be more valuable than holding out for a hypothetical better one.

Counteroffer (sign back)

Counteroffer when the buyer is reasonably close but key terms need work. A good counter is clear and limited: improve the terms that truly matter, keep the communication professional, and avoid turning every detail into a contest.

Remember that a sign-back replaces the buyer’s offer with your own, with a new irrevocable deadline. The buyer can accept it, counter again or walk away.

Decline

Decline when the gap is too large or the terms create unacceptable risk. Declining is not a failure. It is a business decision that should leave the door open to future interest while keeping your listing strategy under review. If the listing has gone quiet since, a seven-day listing reset can help you diagnose why.

The useful middle ground is not automatically “split the difference.” It is a response grounded in the home, the market, and your actual priorities.

If you are selling a parent’s home with an offer date and several decision-makers, the rules change again; see my guide to holding offers on a parent’s home.

Protect the next move while you negotiate

For long-time homeowners and those planning a downsize in London, the offer can stir up a second worry: “If we accept, what happens next?” That is exactly why closing dates, possession needs, and a backup plan belong in the discussion from the start.

Picture the outcome you want: enough time to sort belongings without chaos, a clear date for movers, and a purchase or temporary plan that does not force a decision under pressure. If a buyer’s date cannot support that picture, it is reasonable to negotiate it. Here’s how to answer the closing-date question before you list.

Your broker can also help you understand which items should be confirmed before you commit, including mortgage payout details, purchase timing, and the practical work of preparing for a move. RECO’s seller’s checklist is a useful reminder that commissions, legal fees and moving costs all come off the top, and that you need a contingency plan if your sale and purchase dates don’t line up. The goal is not to make the transaction perfect. It is to make it workable.

A first offer is information, not a verdict

The first offer tells you that a buyer has looked closely enough to act. It also gives you fresh information about how the market is responding to your price, presentation, and terms. Treat a low first offer as useful evidence—not a judgment on the home you have cared for.

The experience behind this guide

I have been licensed to trade in real estate in Ontario since 1990. Over 35+ years in London and the surrounding area, I have negotiated offers on resale homes, new construction, farms, lakefront and recreational property, and multifamily buildings, and I spent more than 25 years selling custom homes for Condon Homes, a London-area builder.

Today, much of my practice is helping seniors and their families plan a next-stage move. That is why my approach to a low first offer puts the whole agreement and the next move ahead of the headline price.

Frequently asked questions

Should I counter a lowball offer?

Often, yes, if the buyer is reasonably close and the other terms are workable. A clear, limited sign-back that improves the two or three terms that matter most keeps the conversation going; if the gap is too large or the terms are too risky, declining can be the better business decision.

Can I decline an offer in Ontario?

Yes. The seller decides how to respond to offers and which, if any, to accept. Your agent must present offers to you, but you are not obliged to accept one.

What is a sign-back?

A sign-back is a counteroffer: you change the terms of the buyer’s offer, sign it and send it back with a new irrevocable deadline. Once you sign back, the buyer’s original offer is no longer open for you to accept, and the buyer can accept, counter again or walk away.

How long do I have to respond to an offer?

Until the irrevocable date and time written in the offer. If it isn’t accepted by then, the offer becomes null and void, so decide your walk-away point and priorities before offers arrive.

Does a low first offer mean my home is overpriced?

Not necessarily. One offer is a single piece of evidence; compare it with current competing listings and the most comparable recent sales before drawing conclusions about price.

What should I compare besides the price?

The deposit, conditions such as financing or inspection, the closing date, requested chattels, fixtures or repairs, and your estimated net proceeds after selling costs.

What is the London, Ontario market like for sellers right now?

In August 2026, the LSTAR region had 6.3 months of inventory and a 37.5% sales-to-new-listings ratio, which LSTAR described as showing signs of a buyers’ market. The London Free Press reported a median of 28 days on market and a 97.1% sale-to-list price ratio.

Plan your response before the first offer arrives

If you are selling in London, St. Thomas, Strathroy, Komoka, Kilworth, or elsewhere in Middlesex and Elgin, define the move you want before a low first offer appears. If one is already on the table, the same plan still applies. With a clear plan, you will be in a far better position to recognize a good agreement and negotiate the rest calmly. I’m happy to walk you through it. No pressure. Just a clear plan.

About the author

Jim Straughan, Broker, INITIA Real Estate Brokerage, has been licensed to trade in real estate in Ontario since 1990 (RECO Registration #4007696), with 35+ years of experience in London and southwestern Ontario. He focuses on helping seniors and their families sell and plan their next stage of housing, and his background includes resale, new construction, farms, lakefront and multifamily property. Read Jim’s full bio.

Phone: 519 872 6616
Email: brokerjim@proton.me
Web: houseforsalelondonontario.com

Sources

Market figures are taken from LSTAR’s August 2026 release and the London Free Press report on it. Rules on offers are taken from RECO’s consumer guidance. Figures were checked on October 1, 2026.

This article provides general information only and is not legal, tax or financial advice. I’m not a lawyer; offer terms, deadlines and your obligations depend on the agreement you sign, so please consult a real estate lawyer and, where appropriate, an accountant. Jim Straughan, Broker, INITIA Real Estate Brokerage.

Not intended to solicit clients already under contract with another brokerage.