A low ball offer is mainly a negotiating tactic. Most people in a negotiation assume that the two sides will start with a gap and then "meet in the middle". A lowball offer is an attempt to drag the "middle" down.
From the buyer's point of view, the best strategy is to make an offer a dollar or two below what they believe is a fair price. Also, make the offer very specific. When you bid a number like $132.50, it implies you have studied the market and come up with a reasonable number. If you bid a round number like $130, it looks like just an opening gambit.
The buyer's strategy becomes more constrained when they are bidding on a popular resort that has just come on the market. The buyer's negotiating leverage is much higher for a property that has been on the market for a couple of months with no takers. So you need a realistic view of the market (i.e. what would you pay for a similar property if you don't take this one?) and the willingness to walk away if you don't get that price. So this also implies that you need the luxury of time to implement the alternative strategy.
From the seller's point of view, some sellers (and brokers) price $10 to $20 above market in the hopes that the "greater fool theory" will kick in and someone will pay it. Other brokers set the price right at or below market in order to move a lot of volume. The buyer needs to know which one they are dealing with.
So if the seller gets a lowball offer, they have a couple of choices. 1) they can refuse to counter. This is the best strategy if their asking price is reasonable and they are getting other offers. 2) They can do an incremental counter to signal that they will negotiate, but not much. For example, priced at $141. Buyer offers $120. Seller counters at $140. This keeps the negotiation going, but otherwise signals that the seller is not open to lowballs. 3) Meet somewhere in the middle. This is a reasonable strategy if the seller started off way above the market anyway.
I would keep emotion out of it, if possible, but I would walk away if they other party seems unethical or erratic.