Should You Offer Less Than the Asking Price?

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Negotiating Strategies and Tips

  • Your offer should be no more than 25% below market value.
  • In a sellers’ market, do not offer less than the asking price if it reflects the market value.
  • In a buyers’ market, offer below asking price.
  • Even if rejected, the seller will likely counteroffer.
  • Make your offer in writing to avoid confusion.

Overcoming Seller Resistance

  • Offering 1-3% more than the highest bid can get the seller’s attention and make them overlook other offers.
  • Around 5-10% below asking is a good place to start in negotiations.
  • An offer more than 15% lower than asking is a lowball offer.
  • Suggest offering 1-4% below asking to reduce monthly mortgage payments.

Evaluating Lowball Offers

  • Consider offering lower than asking price if:
    • Home has been on the market for a while
    • Property isn’t move-in ready
    • Significant repairs are needed

Factors to Consider Before Submitting a Lowball Offer

  1. Time on the market
  2. Condition of the property
  3. Motivation of the seller

Common Questions and Recommendations

  • It’s possible to buy a home at or below the asking price, but offering over asking is common.
  • A lowball offer is typically considered to be at least 20% below the asking price.
  • It’s crucial to assess the market conditions before deciding on an offer.
  • Aim for 5-10% below the asking price initially.

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