In real estate investing, perception is everything. One of the most common objections investors hear from sellers is:
“That’s a lowball offer!”

But here’s the truth: it’s not a “lowball.” It’s a fair offer built on facts.

When you sit across the table from a seller, remember this—you’re not just buying a property, you’re buying risk. As investors, we take on the hidden costs, the headaches, and the unknowns that sellers don’t always see. That’s why knowing your numbers is non-negotiable.

Why Numbers Matter More Than Emotions

A seller sees their home through emotion—memories, sweat equity, or even pride of ownership. But as investors, we’re required to see it through data:

• Comparable sales (ARV) – What will the property actually sell for when renovated?
• Repair costs – What will it realistically take to get it there?
• Holding costs – Taxes, insurance, utilities, interest—every month the property isn’t sold.
• Profit margin – The investor’s reward for risk and execution.

Smart investors know that profitable deals often come from buying at around 50% of After Repair Value (ARV). That number isn’t arbitrary—it’s math.

Breaking Down the Math

Let’s say a home has an ARV of $200,000.

• 50% of ARV = $100,000 purchase price.
• Renovation costs = $30,000.
• Holding/transaction costs = $10,000.

That means your all-in cost is $140,000. If you sell at $200,000, you’re looking at a $60,000 spread.

After accounting for taxes, commissions, and the realities of business, you walk away with a 10–20% margin. That’s not unfair. It’s the only way the deal works.

So when a seller calls it “lowballing,” the truth is—it’s simply the math of making a deal work.

The Investor’s Risk Factor

Here’s what many sellers don’t see:

• If the rehab goes over budget, you eat the loss.
• If the market shifts, you carry the downside.
• If unexpected repairs pop up, you cover the bill.

It’s not a free ride—it’s a trade. They receive cash and speed, while you take on risk, time, and execution.

That’s why fair offers reflect equity in exchange for risk.

Mindset Matters

At the end of the day, real estate investing isn’t just numbers—it’s also mindset.

Remember this: words become flesh. If you approach negotiations apologizing for your offer, sellers will see weakness. But if you stand firm—backed by confidence and data—you’re not lowballing. You’re offering value.

So speak with confidence. Speak with clarity. Let the numbers tell the story.

Final Thoughts

Lowball offers lose because they come from a place of scarcity and fear. But knowing your numbers wins—because it comes from a place of facts, confidence, and value.

When you understand the math and communicate it clearly, you’ll not only win more deals—you’ll build more trust with sellers, lenders, and partners along the way.

✅ Want to learn how to confidently run the numbers and win deals without “lowballing”? Reach out and let’s connect.

All the best,
Brant Phillips