Lowball: Meaning, Example, and Consequences - Investopedia

A lowball offer is a slang term for an offer that is significantly below the seller’s asking price, or a quote that is deliberately lower than the price the seller intends to charge. To lowball … See more

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What is a low-ball offer?

The low-ball is a persuasion, negotiation, and selling technique. When used by buyer, the low-ball is an offer for goods or services far lower than the price the buyer is willing to pay, made in the hope that the seller will at least counter-offer a price lower than the original asking price. ...

What does lowball mean?

To lowball also means to throw out a purposely lower than reasonable number to see how the seller will react. Lowball offers are typically used as an incentive to get a seller to lower the price on something, particularly if the seller is in need of quick funding. ...

What makes a home a lowball offer?

A bid 1o percent less than the asking price in a buyer’s market could be considered a lowball offer. The price range of the home could also be a factor. A lowball could be considered much different in a seller’s market, where constant bidding wars and homes are selling over the asking price. ...

Should a buyer lowball an offer?

For example, a potential buyer might purposely make an offer 15% below the asking price as a way to start negotiations and end up with a price that is ultimately 5% below the asking price. Lowballing an offer works best when the buyer has an upper hand, giving them room to negotiate. ...

What are the characteristics of a low-ball offer?

Here are some common characteristics of low-ball offers and what to look for: Significantly below asking price: Typically 10% to 20% or more below the listing price. Cash offer: Some buyers will pair a low offer with a cash payment to entice sellers with a faster closing process. ...

What does lowball mean in real estate?

To lowball also means to deliberately give a false estimate for something. Usually, the potential buyer making the lowball offer is not actually expecting the seller to accept; instead, it can be used as a way to start or push forward negotiations. ...