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Is It Too Low? What Is Reasonable To Offer In Houston Below Asking Price

Is It Too Low? What Is Reasonable To Offer In Houston Below Asking Price

Buying a Houston home? Here’s when to offer 1% to 20% less asking price.

Buying a home is expensive. But you can save a few bucks if you reasonably offer below the asking price. You want to know what offer the seller finds acceptable or negotiable. Note that you don’t want to lowball the seller to avoid offending them - you might lose out on your dream home!

Here's what and when to offer a reasonable below the asking price when buying a home in Houston.

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What's A Reasonable Offer Below The Asking Price?
When It’s Reasonable To Offer 1% To 20% Or More Below The Asking Price?
Save Big By Knowing What Is Reasonable To Offer Below The Asking Price

What's A Reasonable Offer Below The Asking Price?

"Houston Properties is an awesome team to work with from start to finish and beyond! Brad Evans is definitely the best!" - (Nancy, Google Review)

Making a home offer is both an art form and a strategic move. You'll want your proposal to save costs and appeal to the sellers.

So, how do you develop a reasonable and non-offensive home offer?

First, have a realistic budget to know how much you can afford. Houston is one of the most affordable cities, 36% cheaper than the US's 20 major cities. To find the Top Neighborhoods to buy in Houston based on your budget, see Houston Neighborhood Analysis.

Of course, you’d still want to get your mortgage preapproved. It will give you a better estimate of the loan size fit for you and serve as qualification proof to your sellers.

Let’s say you’d like to buy a $300,000 home in Houston. Here are different scenarios where offering below the asking price would be acceptable.

When It’s Reasonable To Offer 1% To 20% Or More Below The Asking Price?

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20% Or More Below The Asking Price

For a $300,000 priced home, asking for 20% off could help you save $60,000!

Here are four factors where we can easily negotiate a 20% lower offer:

In a buyer’s market. You’d have an advantage in an active buyer's market. You’d have better price negotiation when there are more properties for sale but fewer qualified buyers.
Home’s days on the market. If the home exceeds six months on the market, the seller is more likely to accept a lower offer.
Home’s condition. Depending on the repair or damage extent, a home's condition can help you offer less. You can sometimes work it out when you have a seasoned agent. But you need good negotiation skills to make it work. Some major repairs that might prompt a price reduction include:
- Needed roof replacement.
- Foundation problems.
- Needed home system upgrades or to be brought up to code (electrical, plumbing, HVAC).
- Needed extensive work due to severely run-down house.
Comparable home price. The home price is helpful if it is priced significantly higher than other sold neighborhood homes. A good negotiation point could include similar homes sold for much less than the home that you're interested in.

11% To 19% Below The Asking Price

You could save between $33,000 to $57,000 if you’re asking 11% to 19% off a $300,000 priced home. This offer is acceptable in instances of needed but nothing serious home updates.

Maybe you want a modern design for a 70’s styled kitchen, or if the flooring needs replacement. These updates are excellent negotiation factors, especially when comparable homes are updated.

Another instance to possibly make an 11% to 19% less offer is when you identify a seller desperate to sell. Possible reasons for this desperation could be divorce, deployment, relocation, or financial challenges.

5% To 10% Below The Asking Price

Offering a 5% to 10% below the asking price on a $300,000 home can save you $15,000 to $30,000. It is still a big difference if you ask us!

To achieve this discount, you could use comparable sales as negotiation means. Good starting points, for example, are the home’s minor updates like fresh paint, new flooring, or improved landscaping.

Yet, suppose other homes in the area have updated bathrooms, finished basements, or new appliances. You could use these to argue that comparable homes have new features sold or listed for the same price as the seller’s home.

Another instance of offering a 5% to 10% less price is when the home is stuck in the market without interested buyers. This scenario is common in a buyer’s market due to the various available and lower-priced home options.

Typically, a selling agent will list a home $10,000 over market value anticipating the buyer’s negotiation interests. A buyer’s agent knows this and will offer a lower asking price.

Have one of Houston’s Top Realtors, The Houston Properties Team, do a comparative market analysis. It is to identify if the home is priced accordingly compared to the market value.

1% To 4% Below The Asking Price

A 1% to 4% less offer on a $300,000 home can save you between $3,00 to $12,000. It may seem small compared to the huge costs. However, your mortgage payment can be less than a hundred dollars per month.

Paying with cash is also an ideal instance to offer below 5%. However, most companies that pay in cash make offers that are 65% below market value.

Another good instance is when several offers are on the table, and sellers generally accept the highest bid.

When To Offer Above The Asking Price?

While most buyers want to save money, making an offer above the asking price is not unusual. Some buyers are willing to pay more if they truly love the home due to the quality of life they are looking for.

In this case, an emotional decision is being made instead of a financial one. Yet, it is not necessarily bad since these decisions drive up the Houston real estate market.

Let’s say you buy a home over the market value. You’ll be able to sell it in two to five years and make more money since the market value will increase.

The best offer strategies in the current Houston market are dependent on your location.

Save Big By Knowing What Is Reasonable To Offer Below The Asking Price

"Kim was the best realtor we could’ve asked for. She and the rest of her team provided reliable and professional service. I’m glad I trusted them through this process." - (Mitchell, Google Review)

Buying a home will be your life's most expensive purchase. If there's a chance for you to save up tens or thousands of dollars, why not make a lower offer than the asking price? When buying a Houston home, the trick to getting these discounts is identifying what is reasonable to offer below the asking price.

There will be times when you could offer much less than the asking price with a good reason needed. For example, if it is priced much higher than comparable homes or needs serious repairs.

A good rule of thumb is to identify a buyer's or a seller's market by working with Houston’s top Realtor, The Houston Properties Team. Our team has an excellent buying record and extensive marketing data in Houston’s neighborhoods, condos, and suburbs. Contact us to get personal advice on buying your home.