Is 10% a lowball offer?
Asked by: Tate Stanton PhD | Last update: May 24, 2025Score: 4.4/5 (40 votes)
Just know that an offended seller might not want to negotiate with you any further if they can go with someone not trying to undercut them. 'And fyi 10% is not a lowball offer. 30% would be.
Is offering 10% below the asking price too low?
“In a buyer's market, I would not hesitate to submit an offer that's around 10% below asking,” advises Chris Cloud of Exit Heritage Realty in Haymarket, VA. “Most sellers will at least see that as worthy of a counteroffer.”
What percentage is a lowball offer?
However, what is considered a low ball offer on a house is generally considered to be significantly below the asking price or the market value of the property. This percentage usually falls around the 10% to 20% mark.
What percentage is a reasonable offer?
It's often reasonable to offer 1 to 4 percent below asking price, but putting in an offer for half (or even 75 percent) of the home's list price is the best way to offend the seller and get your offer thrown in the trash. You may even be able to offer 5 percent below asking price if you're paying with cash.
Is 15% off a lowball offer?
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. Cash offer: Some buyers will pair a low offer with a cash payment to entice sellers with a faster closing process.
How to make a lowball offer a seller will ACCEPT!
Is 10 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.
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.
Is a 20% counter offer too much?
If the salary offered is within the low range for similar positions, consider an initial counteroffer 10-20% higher, and if the salary offered is within the average range, consider a counteroffer 5-7% higher. In addition to compensation data, you should research the cost of living for the area you'll be working in.
What is considered a strong offer in real estate?
First, a substantial earnest money deposit demonstrates your serious intent to purchase the property. Furthermore, strong offer components often include earnest money above the standard amount for your market. Additionally, sellers view larger earnest money deposits as a sign of financial stability.
What is a respectable counter offer?
Making a counter offer at a 10 to 20 percent higher value than the initial offer is considered a reasonable range, especially if the initial offer is in the low salary range for similar positions.
Is 20% off 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.
What's the lowest you should offer on a house?
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. The goal of offering 10% below the asking price is to use those extra funds to cover the repairs.
What is a reasonable low offer?
When it's reasonable to offer 20% or more below the asking price. One of the most significant factors that will benefit you when offering below asking is if it's an active buyer's market. In a buyer's market, there are fewer qualified buyers than houses for sale, which gives buyers some leverage.
Can I offer 20% below the 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.
Is it a buyers or sellers market in 2024?
Despite the 30-year low, the market is showing signs of turning as home-buying picked up in the past month of 2024, said the National Association of Realtors, which released the data.
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.
What is a respectable offer on a home?
You need to determine how much you can afford to spend on a house that you may have fallen in love with or is in an area where you want to live — or both! 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.
Do sellers usually go for the highest offer?
“Home sellers typically choose convenience over a higher-priced offer because it could mean fewer headaches during the process.”
What is the rule of thumb for real estate offers?
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.
Why accepting a counteroffer is a big mistake?
Your loyalty will be questioned
If you accept a counteroffer from your current employer after already accepting another offer, it will likely damage your relationship with both your current and future employers.
What is the batna strategy?
BATNA is an acronym that stands for Best Alternative To a Negotiated Agreement. It is defined as the most advantageous alternative that a negotiating party can take if negotiations fail and an agreement cannot be made.
How much is too high for counter offer?
On the high end, 20% is a pretty big difference between their offer and your counter, but it's not so big that it will come across as excessive when used in the right situation. We need to determine where in the typical counter range—between 10% and 20%—you should counter.
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 $100,000 less on a house?
As a buyer, you have every right to offer less than the asking price, if you feel it's too high. But the seller also has a right to reject your offer.
Is it better to ask for closing costs or lower prices?
Many people prefer bringing in less money up front, which is why they go with the closing cost credit option. In our example, you can bring in $2400 less money up front by choosing a closing cost credit over a purchase price reduction. Keep in mind that lenders do have limits on closing cost credits.