How Low-Ball Offers Can Backfire

As a property agent in Singapore, I’ve seen my fair share of negotiation tactics. Buyers want to buy low, while sellers want to sell high. This tug of war is normal, but the way you play it matters a lot.

I want to share a real story that shows how low-ball offers can completely derail your plans. Even when you are willing and able to pay the seller’s price in the end.

THE ALLURE OF LOW-BALL OFFERS

In any negotiation, it feels natural to start low and “see how it goes”. Many home buyers and investors believe this is a clever way to create room for negotiation and save more money.

On paper, it sounds sensible. You might have heard stories about how low-ball offers can lead to big discounts, especially when the market is quiet or the listing has been sitting on the market for a while. Some buyers see it as just “trying their luck”.

Common reasons buyers are tempted to go in very low:

• They want to “test” the seller’s motivation.
• They are afraid of overpaying and want a safety margin.
• They assume that if the seller is genuine, they will still negotiate.
• They believe there is nothing to lose – if it fails, they can always increase their offer.

But when it comes to buying a home – a place where you and your family will create lasting memories – this mindset can be short-sighted. The story below is a painful, real-life example of how low-ball offers can backfire, not just financially, but emotionally as well.

A MISGUIDED STRATEGY

Let me tell you about a couple who learnt this lesson the hard way.

After nine months of searching almost every weekend, this couple finally found their perfect home – a landed house in District 10. It had everything they wanted: the right layout, enough rooms for their children and helpers, and a location close to the schools they preferred. At $6.6 million, it was comfortably within their budget.

The seller’s agent mentioned that the seller was genuine. The house was priced based on recent transactions, and any offer close to the asking price would likely secure the deal.

The couple were the first to view the house. In Singapore’s landed market, being first through the door for a well-priced property is a real advantage. Their agent did her homework and confirmed that the house was indeed fairly priced for its land size, condition and location.

Because the house met their needs and was within their budget, she advised them to start with an offer of $6.5 million to show sincerity. It was a very reasonable offer, only $100,000 below the asking price, and they could adjust quickly if needed.

At that point, the house was well within their grasp.

However, against their agent’s advice, the husband decided to start lower. With the property market moving sideways at that time, he felt the seller would be open to negotiation. He saw this as a chance to turn a good deal into a fantastic deal. He believed this was how low-ball offers can help buyers “win” in softer markets.

His thinking was simple: “If it doesn’t work, we can always offer more later.”

Excitedly, they instructed their agent to follow their instructions and present a $6.1 million offer.

As agents, we can advise, but the client always has the final say. So, their agent went ahead and presented the $6.1 million offer, even though she already suspected how low-ball offers can be received very badly in situations like this.

FACING UP TO CONSEQUENCES

The seller’s agent was stunned when the $6.1 million offer came in. Having seen how enthusiastic the couple were during the viewing, he had expected an offer that was much closer to $6.6 million.

And the seller’s reaction?

The seller was furious. He felt insulted. He was genuine, but he wasn’t desperate. In his mind, this was not a negotiation – it was disrespect. His pride took over.

The couple quickly realised their mistake. They apologised and asked repeatedly to meet the seller. They were now prepared to pay $6.6 million, the full asking price. Unfortunately, the door had already closed.

This is how low-ball offers can do damage that money alone cannot repair. The seller refused to entertain any further offers from them, regardless of price.

The eventual selling price of the house?

$6.5 million. To another buyer, who probably made a respectful offer from the start.

The couple were devastated. They did not just lose $500,000 in “potential savings” by failing to get a deeper discount. They lost the opportunity to buy the one house that truly felt like home after nine months of searching.

THE LESSON LEARNED

This couple’s experience is a clear reminder that when it comes to buying a home, your real objective is not to “beat” the seller. It is to secure the right property at a fair price.

If you find a property that:

• Meets your needs,
• Is fairly priced based on recent transactions, and
• Fits comfortably within your budget,

be mindful of how low-ball offers can sabotage what you truly want.

Instead of fixating on squeezing every last dollar out of the deal, focus on:

• Making a fair first offer. One that is close enough to the asking price to show you are serious.
• Showing respect for the seller’s position. Sellers are people too; they respond to tone and attitude.
• Keeping the big picture in mind. A home you love, in the right location, at a reasonable price, is worth far more than a small extra discount.

Your dream home is where you’ll build a life, not just a battlefield for a negotiation victory. When you understand how low-ball offers can derail your chances, you start to see the value of respect, fairness and timing.

WHY SELLERS REACT SO STRONGLY TO LOW-BALL OFFERS

From a buyer’s perspective, a low offer may feel like a harmless tactic. But from a seller’s perspective, especially in Singapore’s high-value property market, it can feel like a personal slight.

Here is what many sellers read into an aggressive offer, even if you don’t intend it that way:

• “You don’t respect my home.” They may feel you are ignoring the effort, the renovation costs, and the memories built there.
• “You’re not a serious buyer.” Sellers assume that someone who starts too low will be difficult throughout the transaction.
• “You are trying to take advantage of me.” This is especially sensitive for older owners or families selling for personal reasons.

This emotional layer is exactly how low-ball offers can trigger hard responses such as “I’ll sell to anyone but them”, even when your later offers are higher.

As a buyer, you cannot control how every seller feels. But you can control how your offer is presented. A respectful tone, realistic price range, and clear willingness to proceed often matter just as much as the exact number.

WHAT DOES A FAIR OFFER LOOK LIKE?

A key reason why low-ball offers can backfire is that they are often made without a proper understanding of the property’s true market value. In Singapore, buyers today have access to a lot of data. The challenge is using it correctly.

Here are some practical steps I encourage my clients to take:

1. Study Recent Transactions – Properly

Look up recent sale prices for similar properties using public resources such as URA’s transaction data or reputable property portals. But do more than just check the headline numbers.

Ask:

• Are the comparable units on the same street or within the same project?
• Are they similar in terms of land size, floor area, and layout?
• Are they on a similar floor (for condos) or with similar facing and views?
• Were they sold recently, or in a very different market?

This is the foundation for avoiding low-ball offers by grounding your price in reality rather than guesswork.

2. Consider Bank Valuations – With Caution

Bank valuations show what banks are prepared to lend against the property. They are a useful reference, but they are often “desktop” estimates:

• They may not reflect extensive renovations.
• They may not adjust enough for premium facings or rare layouts.
• For unusual properties (penthouses, big terraces, odd-shaped plots), valuations can lag behind real demand.

If you peg your offer purely to the lowest valuation you can find, you risk appearing unreasonable to a seller who knows the true strengths of their property. This is another way low-ball offers can backfire before negotiations even begin.

3. Adjust for Condition and Intangibles

Two houses can have the same size and location but very different appeal. You should adjust your thinking for:

• Quality and age of renovation
• Orientation and privacy
• Proximity to MRT, schools and amenities
• Scarcity – for example, rarely available landed zones or boutique freehold projects

A fair offer range usually sits within a few percentage points of what the market data suggests, once you adjust for these factors.

SMART NEGOTIATION STRATEGIES THAT DON’T BACKFIRE

If you now see how low-ball offers can put you at a disadvantage, the next question is: what should you do instead?

Here are strategies I commonly use with my clients to negotiate firmly without burning bridges:

• Start reasonable, not extreme. For a fairly priced home, starting about 2–5% below asking often leaves room to move without offending the seller.
• Give context for your offer. Ask your agent to explain politely how you arrived at the figure – recent transactions, renovation required, or differences from other units.
• Improve the terms, not just the price.
  • Shorter option or completion period
  • Flexible completion date to suit the seller
• Move in meaningful steps. If the seller counters, adjust your offer upwards in reasonably sized increments. Tiny increases after a very low start are exactly how low-ball offers can drag out a negotiation and annoy the other side.
• Know your walk-away point. Before you negotiate, decide the maximum you are comfortable paying. This keeps you calm and clear-headed.

These approaches still aim to secure the best possible price – but without the damage that extreme low-balling can cause.

WHEN A LOWER OFFER MAKES SENSE (AND WHEN IT DOESN’T)

To be clear, I am not saying you must always pay the asking price. There are situations where a lower offer is entirely sensible. The key is understanding when and how.

When a Lower Offer Is Reasonable

You may consider going meaningfully below asking when:

• The asking price is clearly higher than recent comparable sales.
• The property has been on the market for a long time with no bites.
• There are obvious defects, or heavy renovation is needed.
• The layout, facing or location is less desirable than similar options.

Even then, you should present your offer with supporting reasons. This is very different from pure “low-balling”. You are not trying to see how low-ball offers can shock the seller; you are signalling a fair price level based on evidence.

When Low-Balling Is Likely to Backfire

On the other hand, aggressive low offers are usually a bad idea when:

• The property has just been listed and is already attracting strong interest.
• The asking price is already in line with or slightly below recent transactions.
• It is a rare property – for example, a special ADDRESS, a seldom-available stack, or a development with very few units for sale.
• You know it is your “dream” home, and you are prepared to stretch for it.

In these cases, the risk is clear: you might offend the seller, lose the property, and watch someone else buy it at a price you would happily have paid.

FINAL THOUGHTS

The District 10 couple’s story still stays with me because I saw how low-ball offers can cause deep regret. They did eventually buy another home two years later, but they never forgot the one that slipped through their fingers.

How do you normally negotiate?

The next time you fall in love with a home – whether you are a first-time buyer, upgrader, investor, or overseas Singaporean planning a return – pause and think about how low-ball offers can affect more than just numbers on a page. They can affect whether you even get a chance to own the property you truly want.

Approach the process with respect, good data and a clear sense of your priorities, and you will be one step closer to turning the right house into your home.

P.S. This couple’s agent is my associate. I witnessed firsthand the emotional turmoil she went through as she tried her best to guide her clients. It was a painful lesson for everyone involved, but it underscores the importance of approaching home buying with respect, fairness and a focus on what truly matters – finding a place to call home. The couple eventually bought their new home two years later.