How Much Should I Offer on a House?

The size of the offer on a house is never one-size-fits-all. It’s a delicate balance between paying a fair price and ensuring your offer is compelling enough to secure the home you want.

Highly competitive metro areas, such as New York, might have more homes selling above asking price than below. In areas like this, you may find yourself offering more than the list price to stay competitive. Additional factors, such as your financial situation, inventory, interest rates, property specifics, and seller motivation, all play into the amount of money you should offer on a house. 

When making an offer on a house, use your real estate agent as a resource and guide. They’ll have the most knowledge about how to make a competitive offer.

What is a good offer on a house?

A “good” offer reflects a number you’re comfortable paying while staying competitive. A good offer depends on a home’s list price and whether there are competing offers. Anything from 1% to 20% above asking price could be considered a good offer when the market is competitive. 

When there is less demand, a good offer may be negotiating a lower price. There’s no specific number or percentage you can apply to a home’s sales price. Use your real estate agent and Zillow’s newest Offer Insights tool (available on for-sale listings) to estimate the likelihood of different offer prices being accepted in today’s market. The tool leverages Zillow’s Zestimate, recent nearby sales, and local market data to generate the response, empowering home buyers like you to make an offer you can feel good about.

How much lower can you offer on a house?

The amount you offer below the asking price will be dependent on the seller and the condition of the home relative to the market. Consult with your agent before making a lower offer. Sellers may be open to negotiations if the home:

• Needs significant repairs or updates
• Is priced above recent comparable sales in the area

Be prepared to provide justification for your offer (such as market data or repair costs). Keep in mind that if you go too low, you risk your offering being rejected.

How much do sellers usually come down on a house?

Market conditions will heavily influence a seller’s pricing strategy. In a buyer’s market, you may find sellers lowering their price to make their home more desirable for buyers and compete with other homes listed for sale. Some sellers may lower their price by 5% to 10% or more, especially if the home has been on the market for a while. According to Zillow’s Market Report, 26.6% of listings in June 2024 had a price cut thanks to the mostly neutral market. 

How much over asking price should I offer?

In a competitive market, home buyers might offer 5% to 10% over asking price. But when the market favors buyers, you can often negotiate a lower purchase price with the seller. 

There’s no magic number you can suggest that will guarantee your offer will be accepted. The amount of money you should offer above asking price depends on several factors:

• Demand for the home
• The competitiveness of the local market
• Whether or not the seller is motivated
• How bad you want the home

In 2024, only 26.5% of homes sold over list price, while 54.6% of homes sold under list price, confirming that more homes are selling below their sales price than over. As of July 2025, the number of homes sold over list price has gone up to 30%. However, homes sold under list price remain highest at 50%. As housing inventory continues to grow in 2025, buyers can expect less competition and lower home prices.

When should I put in an offer over the asking price?

There are a few instances in which it makes sense to put in an offer above asking price. Buyers might consider paying more for a home in the following scenarios:

• If it’s a seller’s market
• If the home has a lot of offers
• If a buyer has their heart set on a specific property

In these scenarios, not going over the asking price could cause you to lose the property. However, it’s important to consider if the home is truly worth what you’re willing to pay. Consult with your agent and always keep your budget in mind when making an offer on a house.

How much is too much?

It’s hard to say how much over the asking price is too high. Generally speaking, more than 20% is too much, but it ultimately depends on how competitive the market is. Your agent should be able to give you a maximum price based on comparable sales in the area.

How to calculate how much to offer on a house

If you’ve consulted with your agent, done your due diligence, and decided a home is worth the extra cash, you’ll need to calculate how much to offer the seller. Here’s how to decide how much above asking price you should offer on a home:

1. Calculate your monthly costs: In addition to a mortgage, you’ll pay property taxes, home insurance and potentially HOA fees.
2. Account for closing costs: These fees typically range between 2% and 5% of the home’s purchase price.
3. Leave room for unexpected expenses: Avoid stretching your budget beyond its breaking point, and leave some wiggle room for unexpected expenses like maintenance or repairs. 

Making an offer over asking price

Let’s assume you’re interested in a house worth $475,000. Your agent tells you buyers are putting in offers 1% to 3% higher than the asking price. They suggest you offer 5% over the asking price to secure the deal. To calculate how much you should offer:

Multiply 5% by $475,000 = $23,750 over asking price, or $498,750 total.

Making an offer below asking price

Let’s assume you’re interested in a house worth $350,000. Your agent tells you the home has been on the market for almost two months and they think the seller might be willing to accept a 10% price drop. Your agent suggests you put in an offer for 12% below asking price and negotiate if the seller pushes back. To calculate how much you should offer:

Multiply 12% by $350,000 = $42,000 below asking price, or $308,000 total.

Factors to consider when putting in an offer on a house

When competition is intense and houses are flying off the market, it can be tempting to go much higher than you originally planned. However, it’s always best to take a step back, assess your finances and consider the market before committing to a house you may not be able to afford or might not hold its value. Consider the following when deciding how much to offer.

Look at comparable recent sales prices

Comparable recent sales prices, also known as comps, help you gauge what homes are going for in your local market. You can look up comps yourself by searching recently sold homes on Zillow or asking your agent to check the MLS. Sellers use comps to determine their listing price. Depending on how many offers they get, they might be willing to accept an offer above or below their listing price. 

If you see that homes in a specific area are selling $10-$15k above asking price, you might want to start there. You may even start higher if you want to lock in the property as soon as possible. But if you see that homes are going for $10-$15k less than their asking prices, you may not have to offer anything above the home’s sales price.

Consider current market conditions

In addition to comps, you should also consider current market conditions, specifically, how quickly homes are selling. If the homes in your area are selling in 30 days or less, the market is hot and buyers are probably going above asking price. If you want to compete in a seller’s market, you’ll probably have to go over asking price as well. Understanding market conditions can also help you create a timeline for your home purchase, which is usually different in high-paced markets vs. slow markets.

Get a home appraisal

Most lenders require a home appraisal before they approve a mortgage loan. If the appraisal comes in lower than what you plan to offer, you might have to make up for the difference in cash. In competitive markets, there won’t be much room to negotiate with the seller since they’re probably receiving multiple offers. If the seller won’t lower the price and you’re unable or unwilling to cover the difference, it may be best to walk away from the deal.

Find out if the seller is motivated

Another thing buyers should keep in mind is whether they’re dealing with a motivated or unmotivated seller. Motivated sellers are trying to sell their homes fast due to timely life circumstances, such as a family emergency or new job. Unmotivated sellers don’t have a tight timeline and can wait until the best offers come along. 

It’s important to understand if your seller is motivated, unmotivated, or somewhere in between. This can help guide the negotiation process and give you an idea of how much over asking price you’ll need to offer to secure the property. Tell your agent to ask the seller’s agent when they’d like to close and what their reasons are for selling. 

Ask the seller if they have any cash offers

Another key piece of information buyers should have is whether the seller has any cash offers on the table. Cash offers are appealing to sellers because they eliminate the need for a lender, which can cut down the cost and the amount of time it takes to close. Although cash offers aren’t always above the seller’s asking price, or even at the seller’s asking price, they are guaranteed forms of payment. If you don’t get approved for a mortgage above the home’s sales price, you might be able to outbid other buyers with a cash offer. 

Reflect on how much you want this property

It’s also important to consider how bad you want the home. Before you submit an offer above the home’s listing price, ask yourself if the property has everything you need and whether or not you’ll need to invest in repairs after moving in. If you’re going to eat into your savings or put off family trips in order to buy a certain house, make sure that home meets the majority of your home checklist.

Be honest about what you can afford

Lastly, it’s important to consider how much house you can afford. If you plan to only use the money you get from a home loan, then your budget is pretty clear. However, if you have some money to spare after you’ve paid your earnest money deposit and down payment, you might be able to add a few thousand dollars to the home’s purchase price. Bear in mind, though: Your mortgage will ultimately be based on the home’s appraised value, not the agreed-upon purchase price. If you offer too high over asking price, you’ll be on the hook for the difference.

Should I offer more than the asking price on a house?

Deciding to make an offer above the asking price is a personal decision based on your budget, desire to obtain a specific home, and the competitiveness of the market. Consult with your agent on whether bidding above the asking price is a good idea and how much above the asking price you should offer.