How Much Can You Offer Below Asking Price?

When you’re buying a home in Lake City, your REALTOR® will be there to guide you every step of the way – including the part where you make an offer on the house you really want. But should you offer asking price, or should you offer less than the seller wants? Though every case is different, this guide explains how much you can offer below asking without risking the deal (or offending the seller).

You’ve probably heard of people offering below asking price on a home before – it happens all the time. After all, nobody wants to pay more than they have to when they purchase anything… particularly something as large as a home.

But if you offer the seller too little for the property, it’s considered lowballing. Lowballing can shut down the opportunity for negotiation very quickly, and it can offend the seller to the point where they’re not willing to even entertain the idea of selling you their home.

So what’s a reasonable amount when you want to offer below asking price? The following sections explain.

When to Offer 5 to 10% Below the Asking Price

It can be appropriate to offer 5 to 10 percent off the home’s asking price under normal circumstances – but you should have some justification. For example, if other, comparable homes feature new appliances, updated kitchens or bathrooms, or other amenities, you can approach the seller with your lower offer and mention those things. That may make the seller more willing to negotiate with you on the price and save you some cash in the process.

When to Offer 10 to 20% Below the Asking Price

If the home you want has some moderate deficiencies – like an outdated kitchen or flooring that definitely needs to be replaced – it’s often appropriate to offer 10 to 20 percent below asking price. Additionally, if you know the seller is in a crunch and wants to sell quickly, you may be able to offer several thousand under asking and save a bundle. Your REALTOR will guide you on the exact amount, though.

When to Offer 20% or More Below the Asking Price

When the home you want to buy has major defects, such as a roof that needs to be replaced, foundation problems, or an out-of-date (and out-of-code) electrical, plumbing or HVAC system, you may want to offer 20 percent below asking. Additionally, if other, similar homes in the neighborhood are priced lower, it may be a good idea to offer what you’d pay for one of those homes; the home may not be getting much attention at the too-high price point, which can work in your favor.

Related: How to sell vacant land

Are You Buying a Home or Land for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

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