This tactic is often used when a potential seller is in desperation and may need to liquidate assets quickly. For example, if someone were to offer $2500 for an $8000 asset, this would likely be considered a low-ball offer.
Alternatively, in situations of negotiation, it is not uncommon for prospective buyers to begin the negotiations with a low ball to gauge the seller's expectations for the value of the asset. This is not uncommon in real estate negotiations.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
low-ball — or low·ball (lōʹbôl ) tr.v. Slang low ·balled, low ·bal·ling, low ·balls To underestimate or understate (a cost) deliberately: “He often took illegal cash payments from developers in return for... low balling the cost of construction and… … Universalium
low|ball — «LOH BL», verb, adjective. –transitive verb, intransitive verb. U.S. Slang. to give a lower estimate of the cost of something than the actual cost in order to deceive or defraud. –adjective of or relating to a price or fee that is unusually or… … Useful english dictionary
Low-Ball — The Low ball works by first gaining commitment to the idea or item at lower costs which you are confident that the other person will accept, then using the fact that people will behave consistently with their beliefs to sustain the commitment… … Wikipedia
low-ball — Reduce, as in a bid; a very low estimate. ► “To compete profitably in the new low fare environment, the major airlines know they must continue to slash costs, introduce BAREBONES products and use fare sales that low ball the market.”… … American business jargon
low ball — Slang for making an offer well below the fair value of an asset in hopes that the seller may be desperate to sell. Bloomberg Financial Dictionary … Financial and business terms
low·ball — … Useful english dictionary
low-ball him — offer him a very low price for his car, house etc. If his price is too high, low ball him. Offer him a very low price … English idioms
ball — I. /bɔl / (say bawl) noun 1. a spherical or approximately spherical body; a sphere. 2. a round or roundish body, of different materials and sizes, hollow or solid, for use in various games, as cricket, football, tennis, or golf. 3. any of various … Australian English dictionary
Low Prussian dialect — Low Prussian (German: Niederpreußisch), sometimes known simply as Prussian (Preußisch), is a dialect of East Low German that developed in East Prussia. Low Prussian was spoken in East and West Prussia and Danzig up to 1945. It developed on a… … Wikipedia
Low Prussian — ( de. Niederpreußisch), sometimes known simply as Prussian ( Preußisch ), is a dialect of East Low German that developed in East Prussia. Low Prussian was spoken in East and West Prussia and Danzig up to 1945. It developed on a Baltic substrate… … Wikipedia