"How Much Should You Offer on a House? Let These Questions Guide You."

Elevate Real Estate Brokerage, LLC

03/25/25

 

How Much Should You Offer on a House? Let These Questions Guide You

Buying a home is an exciting yet complex process, and one of the biggest decisions you'll make is how much to offer. Offer too low, and you risk losing the home. Offer too high, and you might overpay. So, how do you find the right balance? Here are key questions to help guide your offer strategy.


1. What Is the Home’s Market Value?

Before making an offer, research the comparable sales (comps) in the neighborhood. A real estate agent can provide a Comparative Market Analysis (CMA) to help you determine if the home is priced fairly.

👉 Pro Tip: Check recent sales of similar homes within the last 3–6 months to gauge pricing trends.


2. What Are the Current Market Conditions?

Your offer strategy should depend on whether it’s a buyer’s market or a seller’s market:

✔️ Buyer’s Market: More homes for sale, less competition → More room for negotiation.
✔️ Seller’s Market: Limited inventory, multiple offers → You may need to offer above asking price.

Ask your agent about average days on market (DOM) and how competitive the local market is.


3. Is the Home Priced to Sell or Overpriced?

Some homes are strategically underpriced to attract multiple offers, while others are overpriced with room for negotiation. A good rule of thumb:

  • If a home is priced fairly and in a competitive area, consider offering close to or above asking price.
  • If it’s overpriced or has been on the market for a while, a lower offer may be reasonable.

4. Are There Other Offers on the Home?

If there are multiple offers, you’ll likely need to:

✅ Offer above asking price (but within reason).
✅ Consider escalation clauses (which automatically increase your offer up to a max limit).
✅ Minimize contingencies to make your offer more attractive.

Your agent can help navigate bidding wars and determine a competitive yet smart offer.


5. What Are Your Financing and Down Payment Options?

Sellers prefer buyers with strong financing, so consider:

💰 A larger down payment (20%+ makes you a stronger buyer).
📄 Mortgage pre-approval (proves you’re financially prepared).
🚀 Cash offers (if possible, they can beat financed buyers).


6. What Contingencies Should You Include?

Common contingencies include:

🔍 Home inspection contingency (allows you to negotiate repairs).
🏦 Financing contingency (protects you if your loan falls through).
🏡 Appraisal contingency (ensures you’re not overpaying).

Waiving contingencies can strengthen your offer, but it comes with risks.


Final Thoughts: Work With a Real Estate Expert

Every home and market is different. Working with an experienced real estate agent ensures you make a well-informed, strategic offer based on market conditions, home value, and competition.

👉 Thinking of making an offer on a home? Contact Elevate Real Estate Brokerage today for expert guidance!

 

WORK WITH US

Insightful local knowledge and extensive expertise. We looks forward to earning your family’s trust and leveraging our success for your benefit for generations to come. We looks forward to earning your family’s trust and leveraging our success for your benefit for generations to come.

Contact Us

Follow Us on Instagram