Going Below Asking Price: How Much Lower Can You Offer?

Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area!

No one wants to overspend on a home, particularly when the asking price seems high. A few thousand dollars can seem like a fortune when compared to other closing costs. You want to make a reasonable offer, but you also don’t want to overspend. It’s normal to wonder how much lower can you offer on a house without losing the deal? Whether you can offer below the asking price depends on local market conditions, the market value of the property, and the seller’s expectations (which you may not know).

The negotiation process is a balancing act. Sellers expect some negotiation, and in many cases, they’ve priced with wiggle room in mind. That said, there’s a fine line between a smart, well-supported offer and one that risks turning the seller away. This guide explains when and how much below asking you can reasonably offer, the risks to keep in mind, and strategies that make your bid stand out even if your price is lower.

Is It OK to Offer Below the Asking Price?

Yes. There is no hard rule about lowball offers. In theory, buyers can offer any amount; however, if the offer is too low, sellers may get offended and refuse to negotiate. Offering below the asking price is a common and acceptable part of the homebuying process. Sellers may not always accept, but most expect buyers to negotiate. The key is ensuring your offer is grounded in data and market conditions, rather than an arbitrary number. Sellers want to know that the offer is supported by comparable homes in the area.

“Your agent should run list price-to-sold price percentages stats for the neighborhood to guide your offer. Go too low and you risk shutting down negotiations or alienating the seller,” said Somer Padilla, Texas real estate agent at Compass. “Deeply under-market sales can also impact the entire community’s property values, so offers should be strategic and respectful.”

In many markets, offers 3–10% below asking are typical when the home is reasonably priced. For example, a $400,000 home might reasonably attract offers between $360,000 and $388,000 depending on its condition and comparable sales. Sellers are more likely to consider these offers seriously if they are accompanied by strong justification, such as recent comparable sales or necessary updates.

How receptive a seller will be often depends on two factors:

• Market Conditions: In a buyer’s market, where inventory is high and supply exceeds demand, sellers expect lower offers. In a seller’s market, with multiple offers competing, offers below 95% of asking are typically dismissed.
• Seller Urgency: A seller who has already bought another home or needs to relocate quickly may be more open to a discount than someone who can afford to wait.

Making an offer below the asking price doesn’t make you a “lowballer” or a disrespectful buyer. It’s simply part of the negotiation process—as long as you come prepared with reasons to support your number.

When to Offer 1–4% Below Asking Price

A modest discount of 1–4% below asking is common in situations where the home is priced fairly and competition is steady, but not strong. In these cases, buyers aren’t trying to score a dramatic bargain; they’re aiming for a small savings or to have some of their closing costs covered, while keeping their offer appealing.

This approach works best in a balanced market, where homes are selling but bidding wars are infrequent and typically occur only for more desirable homes. It’s also well-suited for properties that are move-in ready and don’t require immediate repairs. Sellers who have invested in upkeep and priced their properties realistically are less likely to entertain discounts, but may still accept a slight reduction.

These smaller discounts can also work in your favor if you’re offering cash or minimal contingencies. For example, a seller may accept 2% under the asking price from a cash buyer who can close in two weeks, over a full-price offer that requires financing and inspections.

When to Offer 5–10% Below Asking Price

In markets that sightly lean toward buyers, or at least feel balanced, offering 5–10% below asking can be reasonable. Sellers in these conditions often know they won’t get multiple offers and may be more open to negotiation.

Homes in this range usually share certain characteristics, such as:

• Needing cosmetic updates
• Higher-than-average days on market
• Growing number of comparable homes hitting the market
• Motivated sellers

For example, if a home listed at $400,000 has been on the market for 75 days and clearly needs $15,000 in updates, a serious buyer offering around $360,000–$380,000 is likely making a fair play. Sellers may counter, but strong comps and clear reasoning can support the discount.

When to Offer 10–20% Below Asking Price

Making an offer that is 10–20% below the asking price is bold, but it can be a strategic move when the property or market conditions clearly justify it. Before making such an offer, sellers should consult with an experienced real estate agent and ensure their offer is supported by evidence. Sellers rarely accept this range without strong supporting data, so buyers need to come prepared with recent comparable sales and a clear explanation for their valuation.

This level of discount is most realistic when:

• The home is verifiably overpriced compared to similar listings.
• Significant repairs are needed, such as a failing roof, foundation issues, or outdated major systems, and those repairs are not reflected in the current asking price.
• The listing has been stagnant on the market for months with few showings or price reductions.
• It’s a buyer’s market, with more significantly more supply than demand.
• Buyer’s can offer conditions the listing agent indicates the seller needs, such as a fast closing date or all cash offer.

For example, a $500,000 property that requires $50,000 in roof, plumbing, and electrical updates could justify an offer closer to $400,000–$450,000. Sellers may resist at first, but presenting a contractor’s estimate or detailed comps helps strengthen your case.

When to Offer 20%+ Below Asking Price

Offers more than 20% below asking are unusual in most market dynamics, but they do happen in certain circumstances where sellers are motivated to prioritize speed and certainty over price. These situations are not the norm, but buyers who recognize them can sometimes secure significant discounts.

Deep discounts are most realistic when:

• The property is distressed, such as foreclosures, short sales, or homes with unresolved liens.
• Estate sales are involved, where heirs prefer a quick resolution rather than holding out for top dollar.
• Major structural or safety issues exist, like foundation cracks, outdated electrical systems, or water damage.
• The seller faces urgent financial pressure or relocation, making time a bigger priority than money.

Market conditions matter, too. In strong seller’s markets, this level of discount is fundamentally unheard of. But in buyer-leaning markets with oversupply, sellers may be more willing to negotiate steeply to secure a deal. For example, we may have seen homes sell for such a large discount after the 2008 housing market crash.

Buyers should also set realistic expectations. Properties selling at 20% or more below asking often come with strings attached, such as repair costs, legal complexities, or intense competition from cash investors who specialize in distressed sales. In these cases, working with an experienced agent is critical—they can help you navigate the risks, prepare competitive offers, and ensure the deal actually closes.

Market Conditions That Affect How Low You Can Go

How far below asking price you can reasonably offer depends less on personal preference and more on the state of the housing market around you. A home’s value is always tied to supply and demand, and understanding that balance is what separates a smart negotiation from a missed opportunity.

Buyer’s Market

In a buyer’s market, supply exceeds demand. There are more homes on the market, and sellers grow anxious as listings linger, leading to price cuts becoming common.

Here’s how you can identify a buyer’s market:

• Months of supply near 5 or higher.
• The sale-to-list ratio is around 98% or lower.
• Thirty percent or more of active listings are showing recent price reductions.
• Median days on market are meaningfully above the neighborhood’s 12-month average.

If you’re making offers, it’s essential to recognize that you may hold more leverage. In these conditions, even offers 10–20% below asking can be taken seriously, especially if you back them up with comparable sales data or evidence of needed repairs. Sellers may also be more willing to offer concessions such as covering closing costs or agreeing to repair credits just to secure a committed buyer.

Seller’s Market

Seller’s markets look very different from buyer’s markets. Buyers tend to be stressed, feeling the pressure to make offers quickly. When inventory is low and competition is fierce, homes move quickly—sometimes in days—and bidding wars drive prices up rather than down.

Here are some of the key indicators of a seller’s market:

• Months of supply is less than 3.
• Sale-to-list ratio is at or above 100%.
• Median days on market is under 2 weeks
• There are frequent escalation clauses and waived contingencies in recent comparable sales

In this climate, sellers rarely entertain anything more than a token discount, and many homes sell at or above list price. If you want to make a below-asking offer in a hot market, keep it modest (1–4% at most) and pair it with strong terms, such as a short closing timeline or a higher earnest money deposit, to keep your offer competitive.

The Role of Days on Market

Regardless of whether the market favors buyers or sellers, days on market (DOM) tells a story about the seller’s motivation. A home that’s been on the market for just a week is unlikely to accept a steep discount, even if the broader market is soft. But a property sitting unsold for 60 days or more is often a sign the seller is ready to negotiate. The longer the listing lingers, the more receptive the seller becomes to lower offers, particularly if there have already been price cuts.

How to Structure an Offer Below Asking Price

Offering less than the asking price is perfectly normal, but how you present that offer often matters as much as the number itself. Sellers want two things above all: certainty that the deal will close, and confidence that they’re not leaving money on the table. If your offer addresses those concerns, even a discounted price can look attractive.

Use Comparable Sales to Tell the Story

Numbers speak louder than opinions. Before making your offer, gather three to five recent sales in the same neighborhood. Your real estate agent can pull this directly from the MLS, and sites like Redfin or Zillow can provide a quick snapshot.

Make sure that you adjust your comparisons for condition and features. For example, a home that sold for $375,000 with a new kitchen isn’t directly equal to one listed at $400,000 that still needs updates. In that case, offering closer to $360,000 is a reasonable way to anchor your price to the market. Presenting your offer with comps shows the seller that you believe you’re making a reasonable offer and supports why you’re offering less than the asking price.

Counteract a Lowball Offer: Show You’re a Strong Buyer

Price matters, but sellers care just as much about the likelihood of the deal closing. That’s why making yourself appear as a strong, reliable buyer can often tip the balance in your favor, even if your offer comes in below the asking price.

Here are what sellers and their real estate agents are looking for in offers:

• Financing strength: A fully underwritten pre-approval carries more weight than a basic pre-qualification letter. It informs the seller that your lender has already reviewed your income, assets, and credit, making financing less likely to fall through. For cash buyers, proof of funds provides the same reassurance.
• Earnest money deposit: A larger deposit shows commitment. While 1% of the purchase price is standard in many markets, offering 2–3% can signal that you’re serious about closing.
• Flexible timelines: Some sellers need a fast close, while others want extra time to move. Buyers who can adapt to the seller’s preferred schedule can make their offer stand out.
• Limited contingencies: Sellers understand that inspections and appraisals are normal, but too many escape clauses can make an offer look shaky. Reasonable (or no) contingencies can motivate a seller to accept a lower price.

Put simply, strong buyers look low-risk. A seller weighing two offers will often choose the one that seems most likely to close smoothly, even if it’s not the highest price. If you can present yourself as that buyer, you give yourself room to negotiate.

Be Respectful and Strategic With an Escalation Clause

Sellers expect some negotiation, but how a lower offer is presented makes all the difference. A respectful offer is grounded in facts, not just a number pulled from thin air. Recent comparable sales, specific repairs, or features the home lacks compared to others in the neighborhood support the price. Framing your reasoning shows the seller you’re approaching the process in good faith, not trying to “lowball” them.

In a seller’s market, buyers may worry about offering too little and losing the home entirely if there are multiple offers. This may happen when a house is highly desirable, but the asking price is above market value, so potential buyers are submitting offers below the asking price. In these scenarios, an escalation clause can help.

An escalation clause is an add-on to your offer that says: “I’ll pay X, but if another buyer offers more, I’ll automatically increase my offer by Y, up to a maximum of Z.” For example, you might offer $380,000 with an escalation clause that raises your bid in $2,500 increments up to $395,000. This allows you to stay competitive without starting at your absolute highest number.

Escalation clauses are most useful when you expect multiple offers but don’t want to overshoot the market. However, they’re not always the right tool and shouldn’t be used purely as a form of submitting a lowball offer, as it’s disrespectful. Sellers do not have to provide a reason for rejecting an offer, and can refuse to negotiate with buyers if they find an offer insulting. Work closely with your agent before including one. A seasoned agent can advise on whether escalation clauses are common in your local market and how to word them to protect your interests.

Risks of Offering Too Low on a House

Negotiating for a better deal is a common part of the buying process. Yes, sellers want to save money, but going too low can backfire. Sellers don’t pick their asking price lightly. A lowball offer may seem attractive on paper, but it can harm your chances of actually securing the home. Here are the most common risks:

1. Outright rejection: Sellers may decline your offer without making a counter if it feels far below their expectations.
2. Damaged goodwill: An offer that feels insulting can put the seller on the defensive. Even if they stay open to negotiation, they may be less willing to compromise.
3. Losing the home to another buyer: While you wait for a response, a stronger or more realistic offer may come in and secure the property.
4. Financing complications: If you do succeed in negotiating a very low price, lenders may question the appraisal. A mismatch between the agreed price and market value can delay or possibly derail financing.
5. Weak negotiating position: Starting unrealistically low and then raising your offer later can make you appear uncertain, reducing your leverage during counteroffers.

Making a reasonable offer below the asking price is smart when data support it, but going too low risks losing the home altogether. The most successful buyers aim for a balance: saving money while still presenting themselves as serious, respectful, and ready to close.

How to Get a Lower Price Without Losing the Home You Want

Making an offer below the asking price is part of the buying process, but success depends on more than the number you write down. Market conditions, property details, and how you structure your offer all influence how sellers respond. A respectful, well-supported offer backed by data and presented with strong buyer credentials can save you money without costing you the home.

Making a reasonable offer is about balance. Aim too high, and you may overpay. Aim too low, and you risk rejection or losing the property to another buyer. An experienced real estate agent who understands local market dynamics is your resource for formulating a data-backed, compelling offer.

FastExpert connects you with top-rated agents who negotiate offers like this every day. They can access data you won’t find online, anticipate how sellers are likely to respond, and build an offer strategy that protects your budget while keeping you in the running. Buying a home is one of the most significant financial decisions you’ll ever make. With the right agent by your side, you don’t have to guess how low you can go—you’ll have the confidence of a plan built on expertise.