Is It Too Low? What Is Reasonable to Offer Below Asking Price?

Determining the right offer for a house can often feel like a delicate dance. While buyers aim to secure their dream home without overstretching their budget, sellers are looking to get the best possible return on their investment.

So, how much below asking price is reasonable to offer? The answer isn’t always straightforward, as it depends on the state of the current real estate market, the condition of the property, and the urgency of the seller.

We’ll discuss what’s reasonable to offer to ensure you strike a balance between securing a great deal and not offending the seller with a lowball offer.

Should I offer less than asking price?

Making an offer on a house is as much of an art form as it is a strategic move. You want to make an offer that will save you money (of course), but you also want your offer to appeal to the sellers.

So, how do you even come up with an offer that is both reasonable and non-offensive?

First, you need to determine how much house you can afford. HomeLight’s Home Affordability Calculator will give you an idea of what your mortgage payment would look like depending on factors like your income, your credit score, and monthly debt.

Of course, this is just an estimate — you’re still going to want to get pre-approved for a mortgage. Pre-approval will give you a better estimate of the size of the loan you’ll qualify for, and it can function as documentation to show sellers that you’re likely to be approved for a mortgage.

Let’s look at different circumstances where it would be acceptable to offer lower than the asking price.