What Is Considered a Lowball Offer? Tips to Spot and Avoid Them

Reviewed by: Brandon Brown

You’ve put your home up for sale and you’re eagerly awaiting interested buyers. After a while, you start wondering whether you priced it right …and then your first offer comes in way below asking. Should you panic?

What you’ve just received is a lowball offer—but what is considered a lowball offer, exactly?

A lowball is an attempt to purchase your home at significantly lower than its market value or list price. Lowball offers can waste time and complicate the buying process, leaving you with less confidence in your home’s value and appeal. The solution? Arming yourself with information on how to spot and avoid these offers—or working with a company like FlipSplit that’s committed to fair, data-driven pricing.

What Is a Lowball Offer?

How low is a lowball? Real estate experts differ on what is considered a lowball offer.

Many would say that a bid’s not a lowball until it’s 20-30% under asking. In general, however, conventional real estate wisdom says any offer lower than 90% of the list price can be considered a lowball.¹

Why You Need to Identify Lowball Offers

Putting a property on the market can be stressful—especially if you sell your home conventionally. When bids on your sale come in much lower than expected, you may

Second-guess your research
Question the skills of any real estate agents you’ve worked with
Doubt your ability to recoup your investment in your property
Be unable to purchase a new home with the proceeds of the sale

With one or more lowball offers in hand, you may feel forced to:

Invest your time in negotiating with the lowball buyers
Lower your list price and lose money
Further reduce your listing based on market perception from a price drop
Mistrust the professionals you’ve depended on

One of the most common sources of lowball offers is investors looking to flip a house and capture as much profit as possible, but lowball offers can also come from:

Poor guidance from a real estate agent
Unfamiliarity with generally accepted real estate negotiation boundaries
Cultural differences in bargaining tactics

Even still, the source of lowball offers isn’t all that important. What’s more relevant is knowing how to pick them out and how to firmly say “No.”

How to Spot a Lowball Offer

Spotting a lowball offer is fairly straightforward, but requires a basic understanding of the real estate sales process. Before you list your home or seek a buyer, obtain a current market value from two or more sources including:

Online estimates – Use free online home valuation calculators to determine a reasonable, quick, and costless estimate.
Comparative Market Analysis (CMA) – Look for properties in your area and see how much they’ve sold for recently. Seek out sales featuring houses of similar size, age, and amenities to get the closest comparison.
Appraiser – Hire a paid professional for a walk-through appraisal.

Additional ways to protect yourself against unprofitable offers include^2,3:

Learning about local and national real estate market trends and variables
Knowing whether you’re in a buyer’s or seller’s market
Finding out local stats including average days on market and list to sale price
Watching out for offers that ask for high-value concessions on top of a slightly low bid
Comparing apples to apples by adding in all the cost factors of an offer, not just the price

Now you’re ready to spot a lowball offer. If you get one, consider its value and give it only the time and attention you decide it deserves.

How FlipSplit Avoids Lowball Offers

FlipSplit is founded on core values that position homeowners as partners, rather than paydays. We place honesty above profit—and we’ve come up with a model that proves it. First, we do our research. We look at objective data to determine the current market value of your home based on:

Comparable neighborhood home sales
Property condition
Market status and direction

Next, we determine how much we can resell your home for after optimizing its condition. We come up with a timeline, a plan, and a budget that covers our remodeling and other costs—whether your home needs major construction, cosmetic updates, or nothing at all.

Then, we present you with an all-cash offer based on this formula:

Projected resale value – Our costs = Cash offer to buy your home now

This is where the “proof in our pudding” comes in. If we’re able to resell your home for more than the projected resale value, we split those extra profits with you 50/50. So, instead of us walking away with all the profits from a house flip—the standard approach in real estate—you get the chance for more cash if your home makes a larger-than-projected profit.

Say Goodbye to Lowball Offers with FlipSplit

Amidst the chaos of leaving your current home and building your family a new nest, the last distraction you need is time-wasting lowball offers. They take up valuable real estate on your schedule—not to mention, they can be disheartening and add stress to the sales process.

FlipSplit provides hassle-free, no-obligation cash offers using transparent, data-driven pricing. Plus, you have the opportunity to earn more down the line with a 50/50 split of extra profits.

We respect your time by providing transparent information and putting up quick offers. You also have a choice of closing date—as little as 72 hours or as long as 90 days—based on what’s most convenient for you. Visit FlipSplit to find out more and get started today.

Reviewed by: Brandon Brown

As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.