Definition of Low Ball Offer

What is a “low ball offer”? What is the definition of the term “low ball offer”?

A low ball offer occurs when somebody is offered an amount for an asset that is far less than what the asset is actually worth.

Let’s say that you own a baseball card that is valued at $5,000. This baseball card is extremely rare and is in pristine condition.

Definition of Low Ball Offer - What does it mean> - Finance DictionarySomebody decides to offer you $1,000 for the card. This would qualify as a “low ball offer”, as their offer is clearly well below the value of the card.

Let’s take another example.

You own a home that has been appraised at $350,000. You decide that you are going to put your home on the market and try to sell it yourself, without the aid of a real estate broker.

A gentleman knocks on your door with an offer - $185,000. This would be the very definition of a “low ball offer”.

A “low ball offer” can be a shrewd way of beginning a negotiation process, but it can also be offensive to the seller if the offer is too low.

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