Is it OK to offer below asking price on a home?

Yes, it's often acceptable to offer below asking price, especially if the home is overpriced, has been on the market for a while, or needs repairs. Market conditions and the seller’s motivation also play a role.

When is the best time to make a lower offer on a house?

The best time to make a lower offer is when the home has been listed for a longer period, is priced above comparable sales, or the seller is motivated to move quickly. A buyer’s market also increases your chances.

How much below asking price can you typically offer?

While it depends on the local market and specific property, buyers commonly offer 3% to 10% below asking. Your real estate agent can help determine a competitive offer based on comparable homes.

How can I make a strong offer if I'm going under asking price?

To make a strong offer below asking price, get pre-approved, be flexible on closing dates, limit contingencies, and include a personal letter. An experienced agent can also help craft a strategic offer.

Is It OK To Make an Offer on a Home Below Asking Price?

Offering below the asking price when purchasing a home is a common negotiation tactic, but whether it's considered rude depends on various factors, including market conditions, property specifics, and the approach taken.

Understanding the Etiquette of Lowball Offers

In real estate, a "lowball offer" refers to an offer significantly below the asking price. While such offers can be a strategic move, they carry risks, especially if perceived as disrespectful. Experts advise against making offers more than 25% below the asking price, as this can lead to outright rejection or a counteroffer near the full price.

Factors Influencing the Acceptability of Lower Offers

Market Conditions

The state of the real estate market plays a crucial role in determining the appropriateness of a below-asking offer.

Buyer’s Market: Characterized by high inventory and low demand, giving buyers more leverage to negotiate lower prices.
Seller’s Market: Defined by low inventory and high demand, where sellers have the advantage, and low offers are less likely to be accepted.

Understanding whether the market is favoring buyers or sellers can guide your offering strategy.

Property Duration on the Market

The length of time a property has been listed can indicate the seller's willingness to negotiate.

Recently Listed: Sellers may be less inclined to accept low offers.
Longer on Market: Indicates potential seller motivation, possibly leading to more flexibility on price.

Comparable Sales (Comps)

Analyzing recent sales of similar properties in the area provides insight into a home's market value. If comparable homes have sold for less, a lower offer may be justified.

Property Condition

Homes requiring significant repairs or updates may warrant a lower offer to account for the cost of necessary improvements.

Strategies for Making a Respectful Lower Offer

To increase the likelihood of a lower offer being accepted without causing offense:

Conduct Thorough Research: Understand the local market, property history, and comparable sales.
Consult with a Real Estate Agent: An experienced agent can provide valuable insights and help craft a reasonable offer.
Present a Well-Justified Offer: Clearly explain the rationale behind your offer, supported by data and facts.
Be Prepared for Negotiation: Expect counteroffers and be willing to engage in constructive dialogue.

Potential Risks of Low Offers

While aiming for a better deal is understandable, low offers can backfire if not approached carefully. They may lead to:

Offer Rejection: Sellers may dismiss offers they perceive as unserious.
Missed Opportunities: In competitive markets, low offers can result in losing out to other buyers.

Conclusion

Offering below the asking price is a standard part of real estate negotiations. However, it's essential to approach such offers thoughtfully, considering market conditions, property specifics, and the seller's situation. By conducting thorough research and presenting a well-justified offer, buyers can navigate negotiations effectively and respectfully.

King & Edge Real Estate Agents in Boise, Idaho

As experienced Boise real estate agents, we are honored to have the opportunity to serve you and be a part of your real estate journey. Let us guide you towards a successful and rewarding experience, where your goals become our goals, and your vision becomes a reality. Contact us today and discover the unparalleled service and expertise that sets King & Edge Real Estate apart as we help you sell your home in Boise or find your place to call home.

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Manda Edge Boise Real Estate Agent

Manda, a Boise resident since 1992, deeply appreciates the charm and seasons of Treasure Valley and possesses extensive knowledge of its growth and market trends. Manda is renowned for her exceptional service, professionalism, communication skills, and integrity in pursuing her clients' goals. In 2021, she co-founded King & Edge Real Estate with Stacey King, emphasizing shared values and strong client relationships. The team has since closed over $100m in sales and donated $100,000+ to local charities. Manda holds memberships with REALM Global and the Institute for Luxury Home Marketing and has received multiple awards for her exceptional contributions to real estate, including the 2021 Boise Regional Realtors Professionalism Award.