How Much Below Asking Price Can You Offer on a House?

With homes sitting on the market a little longer these days, one question I’m hearing more often is, “How much below asking price can I offer without insulting the seller?”

The short answer is that there’s no set percentage. You can offer 5%, 10%, or even 20% below asking price, but that doesn’t necessarily mean the seller will consider it. The right offer depends on the home’s actual market value, how long it’s been listed, recent price reductions, and the seller’s circumstances.

As a Realtor in Harford County, Maryland, I always recommend doing your homework before deciding what to offer. Here’s how I approach it.

How Long Has the House Been on the Market?

This is one of the first things I look at when helping a buyer decide on an offer.

If a home just came on the market and it’s the first weekend of showings, the seller probably isn’t going to be very receptive to a significantly lower offer. They’re still expecting interest and may want to see what other offers come in.

But what if that same home has been sitting for 60 or 90 days?

That’s a different situation. In my experience, when a home has been on the market that long, it’s often a sign that it’s overpriced. The market has had an opportunity to respond, and buyers haven’t been willing to pay the asking price.

That can create an opportunity to negotiate.

Another thing to watch for is a recent price reduction. If the seller just lowered the price, they may be less willing to negotiate further because they want to give the new price a chance.

What Is the House Actually Worth?

Before deciding how much below asking price to offer, I think this is the most important question to answer.

What is the home really worth?

Just because someone lists a home for $500,000 doesn’t mean it’s worth $500,000. It might be worth $475,000, or it might be worth $525,000.

Your Realtor should research recent comparable sales, looking at similar homes in the area and making reasonable adjustments for differences in condition, size, features, and location.

For example, if a home is listed at $500,000 but comparable properties support a value closer to $460,000, offering $460,000 isn’t necessarily a lowball offer. You may simply be offering what the home is worth.

That’s a much better approach than automatically offering 10% below asking price on every house.

Can You Offer Too Little on a House?

Absolutely.

I see this fairly often with investors who submit offers substantially below asking price.

While there’s nothing stopping you from making a very low offer, I think, in most cases, it can be counterproductive.

Most sellers I’ve worked with aren’t expecting to get more than their home is worth. They’re simply looking for a fair deal.

When someone comes in and essentially asks a seller to hand over a significant portion of their equity without a good reason, it can upset the seller.

And once that happens, negotiating becomes much more difficult.

My advice is to make an offer you can justify with comparable sales and market conditions. That doesn’t mean you can’t negotiate aggressively, but there should be a reasonable basis for your number.

Does the Seller’s Motivation Make a Difference?

It certainly can, although in most cases you won’t know much about the seller’s personal circumstances.

Occasionally, however, you get information that helps you understand what might be important to them.

Estate sales are one example.

Let’s say a house is listed for $300,000, and the proceeds will be divided among five siblings.

At the full asking price, that works out to $60,000 per person before expenses. If someone offers $250,000, that’s $50,000 per person.

In my experience, some families in this situation may be more open to a lower offer, particularly if it means an easier sale without additional repairs, expenses, or delays.

That doesn’t mean every estate seller will accept a discount. But sometimes convenience and simplicity are just as important as getting the highest possible price.

Can Other Terms Make a Lower Offer More Attractive?

Yes, but only to a point.

A buyer might offer a flexible settlement date, a larger earnest money deposit, or other terms that make the transaction more convenient for the seller.

For some sellers, those things can make a difference.

However, I wouldn’t expect favorable terms to make up for a huge difference in price. And I wouldn’t recommend giving up important protections, such as a home inspection, simply to save a little money.

What If the Seller Rejects Your Offer?

If a seller rejects your offer or counters at a price you’re uncomfortable with, I recommend going back to your research.

Look at the comparable sales again. Consider the home’s condition, location, and how it compares to other properties available.

If the seller’s counteroffer is still reasonable based on the home’s value, it may make sense to negotiate further.

If the numbers don’t support it, you need to be comfortable walking away.

You don’t want to overpay simply because you’ve become attached to a particular home.

So, How Much Under Asking Price Should You Offer?

There’s no universal rule for how much below asking price is acceptable.

A home that’s been listed for three days is a very different negotiating situation from one that’s been sitting for three months. And an overpriced home may justify a substantial discount, regardless of how long it’s been listed.

Whether you’re buying in Bel Air, Forest Hill, Fallston, Aberdeen, or elsewhere in Harford County, my advice is the same.

Understand what the home is actually worth. Once you have a good understanding of its value, you can negotiate with confidence.

That’s ultimately more important than any percentage below asking price.