How To Negotiate A House Price

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Despite continued talk of a seller’s market in many parts of the country, there may be more room for negotiating price than you might think. It’s not as simple as asking for a better deal, though. To buy a house at a cost you are satisfied with, you’ll need to understand what’s appropriate under current market conditions, how to approach a seller tactfully and other dos and don’ts of negotiation.

Steps to take before negotiating

• Research the market: Knowledge is the foundation of effective negotiation. Look at online real estate sites (such as Zillow or Realtor.com) to see what similar properties have commanded in recent months. Keep a close eye on how long homes have been taking to sell, and whether they’re going for full asking price or not.
• Talk to an agent: No matter how much you study the market, though, an experienced local real estate agent is likely to have a deeper understanding of your area’s dynamics. It’s an agent’s job to know their market inside-out, so they can put that knowledge to work for you.
• Get your finances in order: A seller is more likely to accept an offer if they feel confident a buyer can deliver. If you can come to the table with a preapproval letter that confirms you’re financially qualified, a seller will look at your offer more favorably.

How to negotiate a home price

Here are some negotiation tips that can help you gain the upper hand:

• Lean on your agent’s expertise: Deciding how much to offer on a house is something you should closely collaborate on with your agent. They’re the experts in the local market — they will know whether a home’s asking price is reasonable for the area, and how to submit a reasonable offer based on that.
• Ask why the seller is moving: “Our job as real estate professionals is to act in the best interest of the client,” says Nicole Carrel, a Realtor with Modern Abode in Oklahoma City. “You never know the circumstances under which a seller is operating.” For example, if the seller listed just because sales in the neighborhood are strong, they may not budge on their price — but if they are very motivated (in financial distress or mid-divorce, for example) they may be willing to meet you at a lower price point. An agent can help you navigate the nuances.
• Determine your price range: Give yourself some wiggle room for the back-and-forth process of negotiation. For example, you might start with an offer that is 5 percent less than the list price, and if the seller is willing to engage, they might counter with a price that knocks off 2 percent. Make sure you go into the process with an absolute maximum price point, too, so that you’ll know when it’s time to walk away. You might consider building an escalation clause into your offer, so that if another buyer offers more you have a structure in place for how high you’re willing to go.
• Get an inspection: In very competitive markets, buyers have been known to waive the home inspection to make their offer more appealing. It’s probably not smart to do this unless you absolutely have to — inspection results can be an important aspect of negotiations, especially if expensive problems are uncovered.

Negotiating based on inspection results

Your negotiation isn’t completely finished after a seller accepts an offer. You may be able to secure some additional savings based on findings from a home inspection report. A professional inspector will look over the property with a fine-tooth comb, checking the condition of major systems like plumbing and electrical, as well as the roof, windows, foundation and more. If your report shows a need for serious repairs, you can typically use that to your advantage in negotiations.

Do the math to determine how much these issues will cost you to fix, and have your agent talk to the seller’s agent about either taking care of the repairs before closing or covering the cost of the repairs. Some online companies, like Repair Pricer, will translate your inspection report into an itemized list of cost estimates for just this purpose.

Negotiating for things other than price

Money might be the top priority on your mind, but there are plenty of other elements that might be up for negotiation. These can include:

• Furnishings: Do you love the grand piano or the entryway chandelier? It never hurts to ask the seller if they’re willing to consider offers for certain personal items. However, Carrel warns that buyers must “keep in mind that an appraiser can’t see that on a contract.” In other words, the home must stand by itself as being worth the sum you’re asking to finance, so don’t offer so much more that the appraisal comes in low.
• Closing day: You and the seller might be on different moving timelines, so be sure to think about what works best for your needs. If you’re paying rent on an apartment, for example, you may want to try to time the closing date with the end of your lease to avoid two housing payments.
• Closing costs: There are loads of closing costs and fees that need to be paid before you get the keys, but they don’t all have to fall on your shoulders. Work with your agent to see if the seller is willing to cover any costs to relieve your burden.

How much can you negotiate?

There’s no simple answer to how much you may be able to negotiate the price on a home. In a hot seller’s market, the seller might receive multiple above-asking offers. In markets where buyers are tougher to find, though, you have more power.

For example, consider Rochester, New York: Redfin data shows that the typical home here sold for more than 115 percent of the list price in April 2025, which means the odds of negotiating a lower-than-ask price are very low indeed. It was a different story in Austin, Texas, though, where homes sold for 97.5 percent of list price, which opens the door for plenty of negotiating.

To get a sense of your odds, check how long the property has been sitting on the market: The longer it’s been available, the more anxious the seller might be to make a deal. Additionally, note whether the owner is still living there or has already moved out. No one wants to keep paying a mortgage (and property taxes) on an empty house. Both of these are telltale signs that you may be able to negotiate a bit more aggressively. Let your real estate agent lead the way here.

Knowing when to walk away from home price negotiations

If you find yourself returning to the negotiation table again and again, Carrel recommends taking a step back to reassess the situation. “Don’t lose sight of what is really important to you,” she says. Here are a few scenarios where you may be better off walking away:

• The home needs costly repairs: If a major problem was flagged in the inspection — for example, the need for a new roof — and the seller won’t be fixing it, you’re going to wind up paying a lot more.
• The appraisal comes in too low: If an appraiser thinks the home is worth less than your agreed-upon price, take a breath and consider the implications. Can you afford to make up the difference? Do you want the house badly enough to do so? You don’t want to wind up overpaying.
• The seller is unwilling to budge: Some sellers have a my-way-or-the-highway attitude. If you find yourself running into a wall with the seller refusing to make any compromises, you may want to save yourself the frustration.

Bottom line

The list price of a home isn’t always the amount that a buyer winds up paying. Most home sales involve some back-and-forth volleying between parties until both sides arrive at a happy medium. To increase your odds of a negotiation that works in your favor, go into the process with an expert real estate agent who can advise you and guide you through the process.

FAQ

• What seller concessions should I ask for when negotiating?
  

  It depends on how much bargaining power you have. Seller concessions often come in the form of help with closing costs. For example, if buying points on the mortgage is necessary, the buyer might ask for the seller to help with this expense. Other common concessions include the cost of needed repairs, real estate commissions and miscellaneous fees. The seller is not required to agree to these requests, and if they have multiple offers at or above asking price, they might not. But many will agree in order to help close the sale.

• What is considered a lowball offer?
  

  There’s no set definition of what constitutes a lowball offer, but anything significantly lower than the list price might fall into that category. Making a deliberately low offer may snag you a bargain price, but it might also offend the seller or be ignored altogether, so be careful. It’s best to work in collaboration with an experienced agent when deciding how much to offer on a home.

• Can I offer less if I’m buying the house with cash?
  

  Typically, yes. “Cash is always king,” Carrel says. When a buyer makes a cash offer on a home, there is no need to line up financing, so the closing can happen much more quickly. Additionally, cash offers are more of a sure thing, with less that can go wrong along the way. So you may succeed with an offer that’s lower than others on the table if you can back it up with cash.