The offer

C - Reject the Offer: Are there better options to consider?

Do not reject and eliminate a low offer because you're offended with it. The only offer that counts is the final offer.

You have three options: 

You can accept, reject or make a counter offer. Outright rejections should never be made based on the price offered. This will get you nowhere. Forget about being insulted. You’re trying to put a deal together. The buyers could very well be testing your resolve or they could be throwing out a wild offer that a desperate seller might accept. In a buyer's market, the buyer's agent is advising his or her client to start low, very low.

The buyers’ financing:

Inability to obtain a loan is the major cause for a contract to fail. If financing could be an issue, let the buyers know of your concern. Tell them that you're going to take your home off the market when an offer is agreed upon and that you really need full assurance that the sale will be completed.

The fact that the buyers are putting very little down is not a good reason to reject an offer. Financial rejection by lenders is based on several factors, including income, current debt situation, employment and credit history. 

A letter of preapproval from their lender should clear up concerns you have. All reputable lenders will provide one for their clients. If you have any questions, call the lender and confirm.

If they have a house to sell:

Accepting an offer contingent upon the buyers being able to sell their home raises concerns. Keep in mind your motivation, length of time you’ve been on the market, the financial strength of the buyers, the marketability of your home and especially the marketability of their home.

When you counter their offer, eliminate this contingency. Often the buyers can do this by using a bridge (short term) loan from their lender. 

Always negotiate:

If there are conditions that you really don’t like or are uncomfortable with, including the low price, negotiate these issues. Simply rejecting the offer gets you no closer to your goal of a sale.