How Much Should You Offer Below Asking Price on a Home?

Making an offer on a home can feel like walking a tightrope—too low, and you risk offending the seller or losing out; too high, and you might overpay. So, how do you decide just how much below the asking price to offer? Let’s break it down together.

Understanding the Market Mood

The first thing to consider is the current real estate market in your area. In a buyer’s market, where there are more homes for sale than buyers, you have more room to negotiate—sometimes 5-10% below asking. In a seller’s market, with more buyers than homes, homes often sell at or above the asking price, and low offers may not get much attention.

How Long Has the Home Been on the Market?

If a home has been sitting unsold for over a month, it could signal that the asking price is too high or that there’s less competition. In these cases, a lower offer—maybe 5% or even more below asking—could be welcomed by a motivated seller.

Check the Comparables (Comps)

Before making your move, check what similar homes in the neighborhood have recently sold for. If the home you’re eyeing is priced higher than others nearby, you have a strong case for offering less. Your real estate agent can help you analyze this data and find a fair starting point.

What’s Driving the Seller?

Sometimes, sellers are in a hurry to move—maybe they’re relocating for work or have already bought another home. If your agent can find out the seller’s motivation, you might have more power to negotiate a better deal.

Weigh Your Own Interest and the Competition

If you’ve fallen in love with the home and know there are other interested buyers, a low offer could cost you the deal. But if you’re not emotionally attached or are willing to walk away, you can be more aggressive in your negotiations.

• Typical Range: In balanced markets, starting 3-5% below asking is common. In slower markets, 8-10% below isn’t unusual. In hot markets, offers at or above asking may be necessary to win.

Final Thoughts

There’s no magic formula, but a thoughtful approach—guided by market data, the home’s history, and your own priorities—can help you land the right deal. And remember, your real estate agent is your best resource for local trends and negotiation strategies.

Ready to make your move or want personalized advice? Reach out anytime—I’m here to help you navigate the process with confidence!