How Much Should I Offer on a House?

In the Tri-Cities, it’s best to offer a fair, realistic price based on factors such as

• current market conditions
• how long the home has been on the market
• the home’s condition
• the seller’s motivation and timeline (if you know it)
• your Realtor®’s analysis and recommendations

All buyers want to spend as little as possible, which makes perfect sense — and my goal is to help my buyers spend as little as possible on their new home. But, speaking as a local real estate agent who’s been part of 650+ sales, I know there are real risks in making an offer that’s seen as unfair or unrealistic.

Here’s what you need to know about making offers on homes in the Tri-Cities.

There’s No One-Size-Fits-All Offer

Years ago, I had a client searching for the perfect house for her and her family (and their dog). I remember discussing the offer process with her. At one point, she asked, “How much less do I offer? Do we always offer a set amount off, like five or ten thousand dollars, or do we use a percentage, like 3% or 10%?”

I shook my head and said, “Sometimes we offer full price. Sometimes we should offer less, if it’s overpriced. Sometimes, in a multiple offer situation, we might wind up offering more. If we always offer, say, 10% off the asking price with every house you like, you’re going to lose a lot of houses, because that’s not the way it works. Some houses will sell for more, some will sell for less, but we cannot make a blanket policy to always offer a certain amount off.”

She understood, and we discussed earnest money, terms and conditions, inspections, etc. Eventually, we found a great home she loved, we wrote a strong offer, and she bought it!

What a Realistic Offer Looks Like

As you can tell from the conversation I just shared, a realistic offer will depend on many different factors. Here are some of the biggest:

Current market conditions

In a seller’s market, the homeowner has an advantage. You might be competing against other buyers for the same house. You might need to offer exactly what the homeowner is asking for, or very close to it. Sometimes, you might need to offer more.

In a buyer’s market, you have an advantage. The homeowner may not be getting as much interest in the home as they want, and might be willing to negotiate. You may not need to offer the full asking price.

(Bonus tip: I share detailed Tri-Cities housing market updates right here every month, along with plain language explanations of what the data mean to buyers and sellers.)

The home’s condition

This should be pretty obvious. If you’re making an offer on a home that’s in pristine condition, you probably won’t get away with a lowball offer. OTOH, if the home needs some work, the homeowner might be willing to accept a lower offer in lieu of making the repairs themselves.

Days on market

This is a pet peeve of mine with my sellers’ listings: If a home is new on the market, don’t expect the homeowner to welcome a low offer! I’ve seen countless situations where the seller won’t even negotiate early on. If their home has only been available for a week or two, they’re expecting any interested buyer to offer full price (or really close to it).

Your Realtor’s analysis and recommendations

As your Realtor, it’s my job to help you make a realistic offer by doing things like…

• looking at recently sold homes that are like the one you want to buy (we call these “comps” or “comparables”)
• talking to the listing agent to see what I can learn about the seller’s timing and motivation
• considering other terms that could make your offer strong, even if the dollar amount is a bit lower

A realistic offer isn’t just about money. It’s also about contingencies, timing, the likelihood that you’ll be able to close, and many other factors.

Bottom Line for Buyers

In the Tri-Cities, the answer to “How much should I offer on a house?” is simple: We offer what the house is worth based on current market conditions, what we know about the seller’s situation, the home’s condition, and several other factors. We don’t automatically discount our offer because we want to score a deal.

In some situations, we might need to offer exactly what the seller is asking. In others, we might need to offer more, and sometimes we can offer less. Every home and seller is unique, and we need to write our offer accordingly.

Frequently Asked Questions

Here are some more questions that sometimes come up when I’m helping my buyer clients write offers.

Does offering full price mean I’m overpaying?

Not at all. If a home is priced correctly based on recent sales and current market conditions, offering full price simply means you’re paying what the market supports. Overpaying happens when the price isn’t backed by comps, not when you meet a realistic asking price.

Is it ever okay to offer below asking price in the Tri-Cities?

Yes — when the home is overpriced, has been on the market longer than average, needs work, or demand is softer. The key is that the offer should be supported by market data, not just because you want to get a deal.

What happens if my offer is considered too low?

In some cases, the seller may make you a counteroffer. But in others, they may not respond at all. I’ve worked with a lot of Tri-Cities homeowners who refuse to negotiate when a lowball offer comes in.

How much below asking price is considered reasonable?

There’s no fixed dollar amount or percentage. A reasonable discount is whatever the data supports based on comparable sales, condition, market activity, and competition. Anything outside that range, and you risk having your offer ignored or rejected.

Still have questions?

If you’re not sure what a realistic offer looks like in today’s Tri-Cities market, that’s a conversation worth having before you write one. Drop me a note anytime. I’m ready to help.