What’s a Reverse Offer? How It Works and When Sellers Should Use It

If you are preparing to sell your home or have a listing that’s been sitting on the market, you may have heard the term reverse offer. It’s a strategy that’s becoming more common, especially in markets where buyers are hesitant or competition has increased.

Here’s what a reverse offer is, when it makes sense to use one, and how to do it the right way so you’re not leaving money on the table.

What Is a Reverse Offer?

In a traditional sale, buyers are the ones making offers to the seller. With a reverse offer, the seller flips the process: you, as the seller (through your agent), make an offer directly to a potential buyer.

It’s essentially your way of saying:
“We would like to sell you this home, and here is what we’re willing to do to make it happen.”

This offer could include:

• A slight price reduction

• Credits for closing costs

• A flexible closing date

• Other incentives that may appeal to the buyer

When Should a Seller Use a Reverse Offer?

Reverse offers are not something you typically use in the first week your home hits the market. They work best in situations such as:

• The home has had several showings but no offers

• A particular buyer toured the property, expressed interest, but has not made an offer

• The listing is approaching or exceeding the average days on market for your area

• The market is shifting toward more inventory or higher buyer caution

In these cases, a reverse offer can help re-engage buyers and move the sale forward.

The Advantages of a Reverse Offer

When used correctly, reverse offers provide several benefits:

• Creates urgency – It can prompt buyers who may be sitting on the fence to take action.

• Opens a conversation – Some buyers hesitate to submit an offer if they aren’t sure how motivated the seller is. A reverse offer signals that you are ready to negotiate.

• Helps your listing stay competitive – In a market where other homes are lowering prices or adding incentives, a reverse offer can help your listing stand out.

• Protects your timeline – If you are trying to coordinate the sale with another purchase, relocation, or other personal deadlines, this strategy can help shorten your time on market.

How to Use a Reverse Offer Effectively

A reverse offer should be done thoughtfully. It’s not just about making a blanket price cut or giving away value. To make it work:

• Target the right buyers – Typically, you would direct the offer toward buyers who have already shown interest. Your agent will know how to identify and approach these prospects.

• Structure the incentives strategically – A small credit toward closing costs or offering flexible terms often motivates buyers more than a broad price reduction.

• Set a clear deadline – Reverse offers should be presented with a short window for response, typically 48 to 72 hours. This helps create a sense of urgency.

• Work with your agent on pricing and terms – It’s important to analyze recent sales and current competition so that you are offering just enough to motivate buyers while still protecting your home’s value.

Final Thoughts

A reverse offer is simply another tool that can help sellers attract the right buyer and move the sale forward, particularly when the market demands a more proactive approach. When used strategically, it can shorten days on market, protect your sales price, and ultimately help you achieve your goals.

If you are preparing to sell or have a listing that could benefit from this type of strategy, I would be happy to walk you through how it might work in today’s market. Reach out any time.