How to Handle a Lowball Offer

What Defines a "Lowball" Offer?

A lowball offer is typically one that falls significantly below market expectations. Before reacting emotionally, verify it's actually low by checking salary data from Glassdoor, Levels.fyi, and Payscale.

• 10-20% below market rate for the role and your experience level
• Below the posted salary range (if one was provided in the job listing)
• Significantly lower than your current salary without clear justification
• Missing standard benefits like health insurance, PTO, or retirement matching

Why Companies Make Lowball Offers

Understanding the motivation helps you craft your response strategically.

• Testing the waters: They want to see if you'll accept less (many people do)
• Budget constraints: The hiring manager may genuinely have limited budget
• Anchoring bias: They're setting a low baseline for negotiation
• Misunderstanding your value: They may not fully grasp your experience or market rates
• Company policy: Some organizations have rigid pay bands or "low-first-offer" cultures

Step 1: Don't React Immediately

Your first reaction sets the tone. Take time to think strategically.

Do this:

• Thank them for the offer
• Ask for 24-48 hours to review
• Say: "I'm excited about the role. Let me review the full package and get back to you by [specific date]."

Don't do this:

• Accept on the spot (even if you're desperate)
• Reject angrily or burn bridges
• Negotiate via text or instant message
• Make ultimatums without data

Step 2: Do Your Market Research

Before responding, gather hard data to support your counteroffer.

• Glassdoor & Levels.fyi: Look up the exact role at that company
• Payscale & Salary.com: Get regional salary averages
• Industry reports: Check Robert Half, LinkedIn Salary Insights, or trade associations
• Your network: Ask peers in similar roles what they earn (anonymously)
• Cost of living: If relocating, factor in COL differences

Calculate your target number (ideal salary), your minimum acceptable (walk-away point), and your opening ask (10-15% above target).

Step 3: Craft Your Counter-Offer

Key elements:

• Express genuine enthusiasm (they need to believe you want the job)
• Use data, not emotions ("I need" vs "Market data shows")
• Propose a specific number or range
• Focus on value you'll bring, not your personal needs
• Keep it collaborative, not combative

Step 4: Know When to Walk Away

Sometimes the offer won't budge. Walking away might be the right move.

Walk away if:

• The company refuses to negotiate at all (red flag for future treatment)
• The final offer is still 15-20% below market with no path to increase
• They can't justify the low number with data or a clear growth plan
• Benefits are terrible (no health insurance, minimal PTO, no retirement match)
• You have other options or can afford to keep searching

Alternative: Negotiate Non-Salary Perks

If base salary is truly fixed, negotiate other benefits that add thousands in value.

• Signing bonus: One-time payment (often easier for companies to approve)
• Performance bonus: Higher annual bonus percentage
• More PTO: Extra vacation days
• Remote work flexibility: Work-from-home days
• Earlier performance review: 6-month review instead of annual, with raise potential
• Professional development: Budget for conferences, courses, certifications
• Equity/stock options: If it's a startup or public company
• Relocation assistance: If you're moving for the role