Lowballing, or offering a significantly lower price than what is being asked, is a tactic used by some buyers to attempt to secure a bargain. However, this strategy can have broader implications beyond the immediate transaction. When a seller agrees to a lowball offer, it can inadvertently set a new precedent for the market value of similar items or properties. This new lower price point becomes part of the historical price data that future buyers and sellers reference when negotiating their own deals. Essentially, by accepting a low offer, a seller might be contributing to a downward shift in market expectations, which could affect the perceived value of similar offerings.
This shift in market price can have a cascading effect, particularly in tightly linked markets such as collectibles, where sales history is often used as a benchmark for current valuations. Future buyers might expect similar discounts, basing their offers on these new historical lows rather than on previously established prices. For sellers, this trend can be problematic, reducing their ability to achieve higher sales prices. This could result in a market where the norm shifts toward lower valuations, affecting not just individual sellers but the entire market segment.