What is a reasonable low offer?
Asked by: Prince Kuvalis MD | Last update: July 29, 2025Score: 4.5/5 (41 votes)
Is 20% off a lowball offer?
The definition of a lowball offer can vary dramatically. Some agents might say it's 25% or more below the list price. However, in areas with a shortage of available homes, this threshold could shrink to 20%.
How much is considered a lowball offer?
How low is a lowball? Real estate experts differ on what is considered a lowball offer. Many would say that a bid's not a lowball until it's 20-30% under asking. In general, however, conventional real estate wisdom says any offer lower than 90% of the list price can be considered a lowball.
How much of an offer is too low?
“The rule I've always followed is to never go more than 25% below the listed price,” he says. “Chances are, after fees, commission, and sentimental value, the sellers are already hurting. If you dip below that point, they may disregard your offer entirely.”
What is an acceptable low offer on a house?
It's also acceptable to offer 20% or more below asking when the house has been priced significantly higher than what other homes in the neighborhood have sold for. If comparable homes have sold for much lower than the list price of the house you're interested in, that could work in your favor.
How To Negotiate a Property Purchase
Is it OK to offer 10% below asking price house?
Is 10% A Lowball Offer? Offering 10% under the asking price isn't necessarily a lowball offer. Typically, a lowball offer is considered to be at least 20% below the asking price. If you're offering 10% below, the property should be in a good condition but may just need some cosmetic work done.
Do sellers ever accept lower offers?
A low offer may be upsetting to the sellers, but if you and your real estate agent present the offer along with an expression of your appreciation for the property, it's more likely to be accepted than a low offer accompanied by a half-complete contract or an insult about the property's condition.
What is a fair offer on a house?
If this is The One, then you will want to make a house offer that is at least near the asking price — perhaps within 5 percent to 10 percent. For most sellers, coming in close to what they want to get and what the market bears for that particular home is considered a good offer.
Who typically presents an offer to the seller?
This offer is typically delivered by the buyer's agent to the listing agent, and the listing agent passes on the offer to the seller. The listing agent's job is to help the seller make a decision as fast as possible without rushing them, as well as handle any negotiations.
When to offer 20% below asking price?
Dropping an offer this low is justified if the home needs extensive repairs to bring it up to code or make it livable. If the property has problems like roof damage, plumbing and electrical issues or foundation problems, it may be reasonable to offer 20% below the asking price.
How to respond to a low ball offer on house?
Acknowledge it's a low ball offer
Don't respond immediately; instead, let them know you'll get back to them. Then consider what tactic could work best. One approach is to simply say that you're willing to negotiate, but that you need to hear a serious starting offer.
Is 15% off a lowball offer?
Buyers might be trying to get a deal, test the seller's flexibility, or simply see if they can score a bargain. Here are some common characteristics of low-ball offers and what to look for: Significantly below asking price: Typically 10% to 20% or more below the listing price.
What is an example of lowballing?
A classic example of low-balling is when a car dealership lists a car for $14,000 to get you to agree to buy it and later changes the price to $16,000. The low-balling technique is commonly used among salesmen and advertisers. It was first demonstrated by Robert Cialdini and colleagues in the 1970s.
What is a reasonable low ball offer?
What is considered a lowball offer? As a rule, anything below 10 percent of the initial asking price is considered a lowball offer. A lowball offer for a house listed at $500,000 would fall around $450,000. That being said, the market determines what is considered low balling.
Is 25% off a lowball?
Some agents define a low-ball offer as 25% or more below list. In areas where there's a shortage of available homes, that figure may drop to 20%. "What defines lowball varies from market to market and even submarket to submarket, but certainly from price range to price range," says Steve McLinden of Bankrate.com.
How do you politely decline a lowball offer?
Keep your message concise, clear, and respectful. Briefly explain that you have carefully considered the offer but have decided to pursue other opportunities that better align with your career goals and compensation expectations. Maintain a positive tone by expressing your willingness to stay connected.
What is not a smart way to negotiate when buying a home?
Avoid offending a seller with a lowball offer, particularly if you're negotiating in a seller's market or purchasing a beloved property that's been in the family for years. If you do decide to bid around 20 percent under the asking price, make sure you're willing to walk away.
Do sellers wait for multiple offers?
Sellers can accept the “best” offer; they can inform all potential purchasers that other offers are “on the table”; they can “counter” one offer while putting the other offers to the side awaiting a decision on the counter-offer; or they can “counter” one offer and reject the others.
Do realtors buy you a gift?
How much should a Realtor spend on a closing gift? As a general guideline, many real estate agents allocate 1% to 2% of their commission to spend on a closing gift, but the focus should be on the impact and thoughtfulness. Remember, it's the thought that counts, not the price tag.
What is a fair bargain?
A 'fair bargain' arises where an employee has received goods and services from the employer at exactly the same cost and on exactly the same terms and conditions as a member of the public or other independent third party dealing with the employer on arm's length.
What is an appropriate counter offer on a house?
Most sellers will make a counteroffer with a price that's higher, but still below their list price, because they're afraid of losing the potential sale. They want to seem flexible and willing to negotiate to close the deal.
What is the rule of thumb for a house offer?
The rule of thumb is usually between 5 and 10 percent of the home price. Bear in mind that you could lose the money if the deal falls through, so it's important not to put up so much that you'd be ruined if you lost the cash.
What is the lowest price a seller will accept?
The ask price refers to the lowest price a seller will accept for a security. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security.
Can I offer 50k less on a house?
So, in this case, it's best not to lowball at all, and offer list price. How long has the listing been active? You need to pay attention to the property history. It doesn't make sense to submit lowball offer $50,000 below asking price if the property is only been on the market for two days.
Can you ask what the highest offer is on a house?
A request for the highest and best offer can occur in real estate when a seller receives multiple offers during the sale of their home. The seller might request interested buyers to submit their highest offer with their best terms, allowing them to choose whichever one they like best without engaging in negotiations.