Why Lowball Offers Usually Backfire

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Every buyer wants a good deal.

That’s perfectly reasonable.

What isn’t always reasonable is assuming that the best way to get a good deal is by submitting an offer so low that negotiations never have a chance to begin.

As a listing agent, I’ve seen it happen countless times. A home is listed for $500,000. A buyer submits an offer for $450,000, $425,000, or sometimes even $400,000. Then, when the seller rejects it, everyone acts surprised.

The reality is that most successful negotiations don’t start with trying to prove the other side is wrong. They start with both parties recognizing that there has to be a reasonable path forward.

Being the Messenger Doesn’t Mean You Stop Being an Advisor

One of the most common responses I hear from buyer’s agents when they submit an extremely low offer is:

“I’m just the messenger.”

And technically, they’re right.

If your buyer instructs you to submit an offer, you have an obligation to present it.

However, being the messenger doesn’t eliminate your responsibility as an advisor.

Part of your job is helping your client understand what is likely to happen when that offer reaches the seller.

If a property is listed at $500,000 and your buyer wants to offer $400,000, you absolutely have the right to submit that offer. But you should also be explaining to your client that there is a very high probability the seller will reject it outright.

Managing expectations is one of the most important responsibilities a real estate professional has.

Unfortunately, some agents skip that part and instead act as though every offer, no matter how unrealistic, deserves serious consideration.

That’s not helping the buyer. That’s setting them up for disappointment.

You’re Not Negotiating With Me

Another thing I find fascinating is when agents spend significant amounts of time trying to convince me that they’re right and my seller is wrong.

They’ll explain what the seller paid years ago.

They’ll pull old listing data.

They’ll tell me why they think the home should be worth less.

Sometimes they’ll spend more time justifying the offer than they spent looking at the property.

Here’s the reality:

You’re not negotiating with me.

You’re negotiating with the seller.

I don’t make the decision.

I present information, provide advice, and communicate with my client.

Whether I personally agree with your reasoning is largely irrelevant.

The only question that matters is whether the seller agrees with your reasoning.

And in most cases, a seller isn’t going to reduce their asking price by $100,000 simply because a buyer’s agent believes they should.

What the Seller Paid Doesn’t Matter

One of the weakest arguments I hear is:

“Well, they only paid $400,000 for it.”

So what?

The seller’s purchase price doesn’t determine today’s value.

Markets change.

Interest rates change.

Neighborhoods change.

Inventory changes.

Buyer demand changes.

I’ve had sellers invest tens of thousands of dollars in improvements after purchasing a home. New roofs. New HVAC systems. Pool resurfacing. Interior renovations. Exterior paint. Landscaping.

Those investments matter.

A property’s value today is determined by today’s market, not by what someone paid five years ago.

Lowball Offers Create Walls

What many buyers fail to understand is that negotiation is emotional as well as financial.

When a seller receives an offer that feels completely disconnected from market reality, the first thing they start wondering is whether this buyer is serious.

The second thing they wonder is what happens next.

If the buyer is asking for a massive discount now, are they going to ask for another one after inspections?

Are they going to nickel-and-dime every repair item?

Are they going to create conflict throughout the transaction?

Even if the buyer later increases their offer to a reasonable number, trust has already been damaged.

And trust matters.

A lot.

This Isn’t a Game

I think that’s the part some people miss.

This isn’t a contest.

This isn’t a game where the objective is to score the biggest discount possible.

For many sellers, this is their largest financial asset.

The equity from this sale may be funding a retirement move, helping purchase their next home, paying for family obligations, or simply financing the next chapter of their lives.

When sellers react strongly to an unrealistic offer, it isn’t because they’re being unreasonable.

It’s because you’re talking about something that directly affects their financial future.

That’s why I believe agents have a responsibility to guide their clients toward realistic expectations instead of simply throwing numbers at a wall and hoping something sticks.

My Approach to Negotiation

I encourage buyers to negotiate.

In fact, very few homes sell without some level of negotiation.

But there is a difference between negotiating and creating unnecessary obstacles.

When I look at a property, I ask myself a simple question:

Is the seller within striking distance of where the market suggests they should be?

If the answer is yes, then let’s have a conversation.

Let’s work toward a solution.

Let’s find common ground.

What I don’t do is assume a seller priced a property with a secret $100,000 discount built into it.

Most sellers aren’t pricing their homes with the expectation that they’ll accept a wildly different number.

There is usually some room to negotiate.

There usually isn’t a canyon.

Reasonable Offers Create Conversations

The goal isn’t to win a negotiation.

The goal is to buy the house.

A reasonable offer creates a conversation.

An unreasonable offer often ends one before it ever begins.

If buyers and agents would spend less time trying to justify extreme positions and more time focusing on realistic outcomes, we’d probably have far fewer failed negotiations and a lot more successful transactions.

At the end of the day, real estate works best when both sides approach the process with respect, professionalism, and realistic expectations.

That’s not just better for the seller.

It’s better for the buyer too.

For more Central Florida real estate insights, visit https://www.daviddorman.com/blog and browse additional articles covering buying, selling, negotiations, inspections, and market trends throughout Ocoee, Winter Garden, Windermere, Clermont, Orlando, Gotha, Apopka, and surrounding communities.

You can also learn more about market data and consumer resources through the National Association of Realtors at https://www.nar.realtor and Florida Realtors at https://www.floridarealtors.org.


David Dorman
Broker Associate | CENTURY 21 Carioti
2747 Maguire Road
Ocoee, FL 34761

407-948-8295
david@daviddorman.com

https://www.daviddorman.com
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https://www.century21.com/real-estate-agent/profile/david-dorman-P25090257/

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