What Is a Lowball Offer in Real Estate?
Buying a home is often a negotiation, but when does an offer cross the line from strategic to unrealistic? A lowball offer is one that falls significantly below a home's asking price—often 10-25% lower—and can risk turning off sellers if not approached correctly.
Why Do Buyers Make Lowball Offers?
There are a few common reasons buyers submit lowball offers:
The home has been on the market for a long time.
The property is overpriced compared to similar homes.
The buyer is testing the seller’s motivation.
The home needs significant repairs.
The market is shifting in favor of buyers.
When Is a Lowball Offer Too Low?
A lowball offer can be a great strategy in some cases, but offering too little could cause the seller to reject or ignore the offer entirely. Sellers often take offense if they believe the offer isn’t serious or fails to consider the home’s true value.
Tips for Making a Strategic Offer
Do Your Research: Look at comparable home sales before making an offer.
Consider Seller Motivation: If the seller is eager to move, they may entertain a lower price.
Be Prepared to Negotiate: Lowball offers often require strong counteroffers.
Show You’re a Serious Buyer: A strong pre-approval and reasonable terms can make a lower offer more appealing.
Bottom Line
A lowball offer isn’t necessarily a bad strategy, but it needs to be backed by market data, smart negotiation, and respect for the seller’s position. If you’re thinking about making an offer and want to ensure you get the best deal without burning bridges, let’s discuss your strategy!