Lowball offers are those that are significantly below the current list price of a home. Typical offers in my area run around 3-5% below list. Lowball offers are significantly below that. Interestingly, if the home is was over priced to start with, the really lowball offer might be spot on. But for this discussion, lets assume that the home is appropriately priced and the offer is 10% or more below.
I can tell you a common response from the seller is to not even acknowledge the offer, not even counter. They believe the potential buyer is just trying to "Steal" their home. I encourage sellers to respond with a counter no matter the offer price as this can and does lead to negotiations that could get the home sold.
Buyers who make lowball offers generally are not seeing the same value as the seller. They are looking at all the new paint, carpet, and other upgrades they will need to do before this home becomes "Livable" for them. The seller believes the home is great just like it is.
So, lowball offers seem to anger the seller, which is not a great way to start a negotiation, and the homes seldom sell for that lowball price. My thought is this, if the home you are looking to buy is priced reasonably well, but you need to make a very low offer, you might want to look for a home that better matches your needs. And sellers, ALWAYS counter a lowball offer. You never know when the resulting negotiations will get the home sold.