Join Suze Cumming, founder of The Nature of Real Estate and Canada’s leading real estate negotiation expert, for a free fast-paced, high-value masterclass on Tues. May 20, 2025 at 1 PM. It will shift the way you think about negotiation—and give you powerful tools you can use immediately. Register for free here.

A low-ball offer is one that comes in significantly below the asking price, lacks support from recent comparable sales and runs the risk of offending the seller. This could be anywhere from 5 per cent to 30 per cent below the asking price, depending on market conditions.

Understanding BATNA

Buyers may target a specific property for a low-ball offer or broadly search for below-market deals across several homes. These scenarios require different approaches, and success in both hinges on understanding the seller’s and/or buyer’s BATNA (their Best Alternative to a Negotiated Agreement). BATNA represents a seller’s fallback option or “walk-away” plan if no agreement is reached, influencing their negotiation power and flexibility. 

For example, a seller with a strong BATNA might have another buyer lined up, or may not need to sell urgently because they can rent the property out or stay put for the foreseeable future. A seller with a weak BATNA, on the other hand, might already have purchased another home and be facing double carrying costs, increasing their urgency to sell.

Buyers may also have a BATNA. A buyer with a strong BATNA might have multiple properties they are interested in and be willing to walk away if their offer isn’t accepted. A first-time buyer with a flexible timeline and many listings to choose from may be in no rush and can afford to be selective. Conversely, a buyer who has sold their current home and is on a tight deadline to move may have limited alternatives, giving the seller more leverage in negotiations.

Let’s examine this first through the lens of a buyer/buyer’s agent and then through a seller/listing agent.

As a buyer’s agent

Successful low-ball offers depend less on finding a “distressed” seller and more on assessing the seller’s negotiating power. Financial strain, tight timelines or personal duress reduce this power and may present opportunities.

A skilled buyer’s agent uncovers these dynamics through strategic information gathering, strong relationships with agents, neighbourhood awareness and professional intuition. This art of dealmaking can be learned and honed over time.

Once a property is marked as a potential low-ball target, thorough research and rapport-building with the listing agent become crucial. The more you know about the property, the sellers, the listing history and recent market activity, the better your chance of making a deal.

Your relationship with the listing agent is essential—they aren’t merely gatekeepers but can become strategic collaborators. Build trust, and they may advocate for your offer, even if it’s below asking price. Persuade the listing agent of your offer’s fairness, and they’ll be more likely to persuade their client.

Other valuable information sources include neighbours, social circles, Google and social media. To become a master negotiator, maintain continuous social and situational awareness.

Building rapport can be challenging, especially with difficult or inexperienced agents. Successful agents develop the skill to navigate such personalities, turning potential obstacles into opportunities. Collaboration is essential.

The most critical information is the seller’s BATNA. If the seller has a strong BATNA and the market favours them, your low-ball offer will likely fail. Conversely, if the seller has a weak BATNA, your strategic use of emotional intelligence and collaborative problem-solving significantly increases your chances.

Keep your buyer’s offer as clean and straightforward as possible. Addressing the seller’s other needs, such as preferred closing dates or minimal conditions, can enhance its appeal.

Presenting your lowball offer

How you present your low-ball offer is crucial. Acknowledge its potential emotional impact clearly: “I understand this might not be what you hoped for, but we felt an offer was better than none.”

Also, transparently share your client’s BATNA: “They love the home but are seriously considering three others,” or “They’re investors, and price is their sole motivator.”

Avoid criticizing the property or pushing market data aggressively. These tactics hinder collaboration and reduce your chances of making a deal.

Ideally, present your offer in person or via video conference. A well-crafted email paired with a phone call is the next best approach. Write your email in a way that the listing agent feels comfortable sharing with their client.

As the listing agent

Receiving a low-ball offer can feel insulting for both you and your client. The instinctive reaction may be outright rejection, but strategic handling can transform a low offer into an opportunity.

Your role as a listing agent is to remain objective and professional. Remember, it’s not your house or your money. Your responsibility is to assess the offer professionally and guide your client to do the same.

Evaluate the buyer’s power: What is their BATNA? Do they have alternatives? Are they broadly searching or specifically interested in this property? Information gleaned from the buyer’s agent or nuances within the offer itself informs your counteroffer strategy.

Help your seller view the offer not as an insult but as an opening dialogue. A buyer making any offer, especially in a slower market, represents potential. The right counteroffer or creative adjustment could lead to an acceptable deal.

Understand your client’s power by clearly assessing their BATNA. If they have ample time, financial stability or competing interests, they can confidently stand firm. However, if the market is slow, the property has lingered, or motivation is increasing, it might be time to reconsider expectations.

Knowing your client’s BATNA is vital to advising them effectively, as their unique situation can outweigh market data in negotiation strategies.

Even if a low-ball offer fails, maintaining a positive, collaborative relationship with the buyer and their agent is beneficial. Perceptions of value can shift, and keeping communication lines open may eventually result in a successful transaction.

Low-ball offers are common in real estate, particularly during uncertain markets. Whether buying or selling, approaching these offers strategically, not emotionally, is key to successful negotiations.

Join Suze Cumming, founder of The Nature of Real Estate and Canada’s leading real estate negotiation expert, for a free fast-paced, high-value masterclass on Tues. May 20, 2025 at 1 PM. It will shift the way you think about negotiation—and give you powerful tools you can use immediately. Register for free here.

Suze Cumming

Suze Cumming is the founder of The Nature of Real Estate and Canada’s Real Estate Negotiation guru. Suze and her team have run over 5000 real estate professionals through negotiation designation courses since 2013 and have guided many top agents and teams to their success.  

Her courses, the Accredited Real Estate Negotiator (AREN) and the Professional Real Estate Negotiator (PREN), are Canada’s newest and fastest-growing designation.   These courses are offered live online in small interactive groups or in person for brokerages and boards.   

Suze is passionate about two things. Helping REALTORS get massively successful results for their clients and for themselves.   And Sailboat racing.   When Suze isn’t on a stage or in a zoom room, you’ll find her racing her sailing yachts in various locations around the world.    

 

For 38 years, Suze has been passionate about real estate and the lifestyle that it makes possible for each of us.  She knows for sure that the only way to the top is to be remarkably good at what you do.