Low ball

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Lowball

1. Of or related to the low cost of a good, service, or security. A lowball cost is determined by comparing the cost to similar goods, services, and securities. Lowball costs may indicate a low quality in the good, service, or security.

2. Informal; to make an offer to buy something for an exceptionally low price. For example, if the asking price on a house is $200,000, a potential buyer may lowball the seller by offering $125,000.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Ali and Kamaruzzaman (2010) found that causes of cost overrun were inaccurate or poor estimation of original cost, poor project management, lack of experience of the project team, improper planning, fluctuation price of raw materials, obsolete or unsuitable construction equipment and methods, unforeseen site conditions, mistake in design and construction cost underestimation. Jamaludin, Mohammad and Ahmad (2014) claimed that the causes of construction cost overrun were incomplete design drawings and specifications at tendering stage, changes in client requirements, fluctuation of material prices, financial difficulties faced by the contractors, poor planning, scheduling and monitoring the construction projects, lack of coordination among project parties and lack project team's experience.
However, this overestimation probably was countered by other factors that led to cost underestimation, including omission of certain medical cost categories (e.g., long-term mental health services, complementary and alternative medicine, and nondurable medical goods) (8), institutionalized and military populations, and costs for unpaid services.
He should have provided more examples of operating and capital cost underestimation and how more realistic figures might be obtained through the use of analytic techniques and experienced hunches.