Some buyers like to make “low ball” offers when negotiating. I define a “low ball” offer as one the buyer knows has virtually no chance of being accepted because it is way off the market value of the property, but they do it anyways. Some buyers like this approach, especially in a buyer’s market, because they are fishing for a great deal and use this as a negotiating technique. They aren’t afraid of rejection and are willing to take many pot shots before they secure a home. In a strong sellers market, which is what we currently have, this approach won’t be fruitful. Some buyers just do it because it reflects their personality and it has how they approach things, regardless of market conditions.
Don’t define a low ball offer by how far below the list price you are offering. Maybe the list price is not appropriate and is way too high. I define a low ball offer by how far off the market value you are offering. If you are coming in way below market value then your offer may be a low ball offer and may not accomplish the goals you are looking for, which is to buy the home at the best price possible. Market value takes into account the circumstances and motivations of the seller and the buyer plus overall market conditions. If the seller is highly motivated this can lower the market value.
Sometimes a buyer agrees the market value is a fair price but still want to make a low ball offer anyways as a negotiation technique and tactic. I find this approach to be highly ineffective because you aren’t putting any pressure on the seller. It’s more of a guess versus a strategic move. You get the best price when you can exert some influence and pressure on the seller to stretch to your price. Don’t make it easy to say no but make it hard to say no to what you are offering.