In real estate, every buyer wants the best deal—but trying to get that deal by lowballing sellers is often a losing strategy in today’s competitive property market. While some believe that making an offer far below asking price gives them room to negotiate, the reality is that lowballing rarely leads to successful purchases, especially in a market with fewer listing than buyers like the Gold Coast.
With the RBA February 2025 rate cut, the property market is moving fast. Buyers who make strategic, realistic offers are securing high-growth properties, while those who rely on lowball tactics are left behind.
So, why doesn’t lowballing work? And what should smart buyers do instead? Let’s break it down.
Why Buyers Think Lowballing Works
Many buyers believe lowballing is a smart negotiation tactic, assuming that starting low leaves room to haggle, that desperate sellers will take any offer, or that throwing out low bids might occasionally land them a bargain. On the surface, this strategy seems like a way to secure a deal, but in reality, it rarely works—especially in a competitive market.
Sellers today are more informed, often receiving multiple offers and working with experienced agents who know the true value of their properties. A lowball offer doesn’t just miss the mark—it signals to agents and sellers that a buyer isn’t serious, making it harder to negotiate a fair deal later. In a market where quality homes are in short supply, buyers using this approach risk getting left behind while others secure the best opportunities.
The Reality: Why Lowballing Fails in a Hot Market
Lowballing may have worked in past buyer’s markets, but in today’s climate—where demand outstrips supply—it’s a fast track to missing out on great properties. Here’s why:
- Sellers Reject Low Offers Instantly
- In a market where quality homes are in short supply, a lowball offer is often dismissed outright and agents will just ignore the offer.
- Sellers and their agents know the true value of the property and won’t waste time on buyers who don’t make competitive offers.
- You Lose Credibility with Agents
- Real estate agents are skilled at identifying serious buyers versus those looking for unrealistic bargains.
- If you submit multiple low offers, agents may stop engaging with you altogether—hurting your chances of getting a good deal in the future.
- You Waste Time While Smart Buyers Act Fast
- In a market where properties move quickly, spending time negotiating an unrealistic price means you risk losing out to another buyer who understands the value of the home and makes a clean, fair offer.
- In a market where properties move quickly, spending time negotiating an unrealistic price means you risk losing out to another buyer who understands the value of the home and makes a clean, fair offer.
- Low Offers Can Offend Sellers
- Real estate is an emotional game. Many sellers have strong attachments to their homes and won’t entertain offers that seem insulting.
- Instead of encouraging negotiation, a lowball offer can make them less willing to negotiate at all.
Simply put, lowballing doesn’t just fail—it actively works against you.
What Smart Buyers Do Instead
Instead of throwing out lowball offers and hoping for a lucky break, successful buyers use a smarter approach to secure high-quality properties:
1. Understand Market Value
A smart buyer never guesses when it comes to property prices. Instead, they research recent comparable sales, analyse local trends, and consult with experts to determine a property’s true market value.
This knowledge allows them to make strong, data-driven offers that align with what sellers expect—giving them a competitive edge over buyers who rely on outdated or unrealistic pricing tactics.
2. Work with a Buyer’s Agent
Navigating the real estate market alone can be challenging, especially in high-demand areas. A skilled buyer’s agent brings experience, negotiation expertise, and industry connections to the table. They help buyers craft offers that are both competitive and strategic, ensuring they get the best possible deal without risking rejection due to unrealistic pricing.
More importantly, an agent can provide insights into off-market opportunities and upcoming listings before they hit the market.
3. Make Competitive Offers with Clean Terms
A winning offer isn’t just about price—it’s also about the terms. Smart buyers understand that sellers often prioritise a smooth transaction over the absolute highest offer. They make their bids more attractive by:
- Offering a shorter settlement period, reducing uncertainty for the seller.
- Minimising contingencies, such as waiving unnecessary conditions that could slow the process.
- Being flexible with move-in dates, accommodating the seller’s timeline to create a more appealing deal.
These small adjustments can make a big difference in how an offer is perceived, increasing the chances of acceptance.
4. Build Relationships with Real Estate Agents
Successful buyers recognise that real estate is a relationship-driven industry. Buyers who communicate professionally, respond quickly, and demonstrate genuine interest in properties often gain priority with agents.
This can lead to early access to new listings, insights into seller motivations, and better negotiation opportunities. Agents are more likely to advocate for buyers they trust, making a strong professional relationship a valuable asset in securing the right property.
5. Move Quickly in a Fast-Moving Market
In competitive markets, hesitation can cost buyers their dream home. Smart buyers are well-prepared—they have their finances in order, pre-approvals secured, and a clear idea of what they’re looking for. This readiness allows them to act decisively when they find the right property, reducing delays and beating out slower-moving competitors. Having a strategy in place ensures they don’t miss out on great opportunities due to indecision.
The Current Market: Why Strategy Matters More Than Ever
With the recent RBA rate cut and ongoing population growth on the Gold Coast, the property market is heating up. Buyers who assume they have the upper hand in negotiations may be in for a rude awakening—sellers are in control, and competition is fierce. Well-positioned properties are receiving multiple offers, often within days of being listed.
This shift makes it crucial for buyers to adopt a strategic approach. Investors and homebuyers who understand the market’s momentum and adjust their tactics accordingly are securing prime properties with high growth potential. On the other hand, those who try to force the market to bend to their will by submitting lowball offers are missing out entirely.
Instead of focusing on squeezing out the lowest price possible, smart buyers are focusing on value—finding properties with strong long-term potential and structuring their offers to stand out. Whether it’s offering flexible terms, moving quickly, or leveraging a buyer’s agent’s expertise, the key to success is playing the market the right way.
Get Ahead with the Right Information
In today’s fast-moving property market, buyers who rely on outdated negotiation tactics like lowballing are getting left behind. Sellers are well-informed, demand is high, and competition is fierce. The best way to secure a great property isn’t by making unrealistic offers—it’s by making smart, strategic decisions that set you up for long-term success.
To help buyers navigate the 2025 market with confidence, we’ve put together the Gold Coast Property Report 2025—a comprehensive guide covering market trends, price growth insights, and investment opportunities. Whether you’re a first-time buyer or a seasoned investor, this report will give you the knowledge you need to make informed, strategic offers.
Download the 2025 Gold Coast Property Report, and if you are ready to take the next step and work with an expert team that can help you find, negotiate, and secure the right property, get in touch today.
