# 8 Expert Tips for Negotiating a Better Home Price By Opendoor Editorial Team | 2022-09-27 > Depending on the market and the seller, you may be able to negotiate a home’s price. These helpful tips can help when it’s time to buy your home. ## Key Takeaways ## **Key takeaways:** - Whether you can negotiate a home’s price depends on a variety of factors, including the current market. - Your real estate agent may be able to help you negotiate with the seller. - A home inspection can reveal issues that may give you leverage to negotiate. - You may be able to negotiate closing costs. # 8 Expert Tips for Negotiating a Better Home Price Buying a home is likely the biggest financial decision you'll make, and the asking price is rarely the final word. Most sellers expect some back-and-forth, which means the number on the listing is often just a starting point. The difference between a good deal and an overpay often comes down to preparation and timing. This guide covers eight proven strategies to help you negotiate a better home price, from leveraging inspection findings to knowing when walking away is your strongest move. [Get your offer](#) ## Can you negotiate a house price Absolutely. Negotiating a home price is a normal part of buying real estate, and most sellers expect it. Buyers can often negotiate anywhere from 1% to 10% off the asking price, depending on how long the home has been listed, what the local market looks like, and what a home inspection turns up. In a buyer's market, where there are more homes than buyers, you might have room to offer 5% to 10% below asking. In a seller's market, where competition is fierce, the wiggle room shrinks considerably. The foundation of any good negotiation is research. Looking at [comparable sales](https://www.opendoor.com/articles/home-sellers-why-you-should-care-about-comps), often called "comps," from the past four to six months helps you understand what similar homes actually sold for. Homes that have been sitting on the market for five or more weeks, or ones where the seller has already dropped the price, tend to signal more flexibility. Before diving in, a few [terms are worth knowing](https://www.opendoor.com/articles/real-estate-terms-you-should-know): - **Comps:** Recent sales of similar homes in the same neighborhood that help establish fair market value. - **Contingencies:** Conditions in your offer that let you back out without losing your deposit if certain requirements aren't met, like a satisfactory inspection. - **Earnest money:** A deposit, typically 1% to 3% of the purchase price, that shows the seller you're serious. ## How to negotiate home price as a buyer Negotiating a home purchase involves more than just picking a number and hoping for the best. The buyers who get the best deals combine solid preparation, market knowledge, and clear communication. Here's how each piece fits together. ### 1. Get pre-approved for a mortgage A [pre-approval letter](https://www.opendoor.com/articles/should-you-get-pre-approved-for-mortgage-before-looking) tells sellers you've already started the financing process and can actually afford the home you're bidding on. Unlike pre-qualification, which is just an informal estimate based on what you tell the lender, pre-approval involves a real review of your financial documents and credit history. Sellers tend to prefer pre-approved buyers because the deal is less likely to fall apart due to financing issues. Cash offers, like the kind you can get from companies that buy homes directly, can be even more attractive since they skip the appraisal and financing steps entirely. ### 2. Research comparable sales and market conditions Before making an offer, take time to look at what similar homes in the area have actually sold for. This data helps you figure out whether the asking price is fair and gives you evidence to back up a lower offer if it isn't. It also helps to know whether you're in a [buyer's market or a seller's market](https://www.opendoor.com/articles/buyers-vs-sellers-market-how-to-use-the-current-market-to-your-advantage). In a buyer's market, there are more homes available than people looking to buy ([37.2% more sellers than buyers](https://www.realestatenews.com/2025/12/26/buyers-market-expected-to-persist-for-the-foreseeable-future) currently), which usually means more room to negotiate. In a seller's market, competition is stiff, and you may have less leverage on price. A few things to look into: - **Recent comps:** What did similar homes sell for in the past three to six months? - **Days on market:** Has the home been listed for several weeks or longer? - **Price history:** Has the seller already reduced the asking price? ### 3. Check the listing history and days on market A home that's been on the market for more than a few weeks often signals that the seller is motivated to make a deal. Many sellers become more willing to negotiate after five or more weeks without an accepted offer. Price reductions in the listing history can also point to flexibility. If the seller has already lowered the price once, they may be open to negotiating further, especially if they're facing a deadline like a job relocation or the purchase of another home. ### 4. Learn why the seller is moving Seller motivation can make a big difference in how much leverage you have. Someone relocating for a new job or juggling two mortgages may care more about a quick, certain sale than squeezing out every last dollar. Your real estate agent can often find out this information through conversations with the listing agent. A seller who's already bought their next home, for example, might accept a lower offer in exchange for a faster closing. ### 5. Use a home inspection for leverage A professional [home inspection](https://www.opendoor.com/articles/home-inspection-checklist-for-buyers) often uncovers issues that aren't visible during a showing, from roof damage to plumbing problems to foundation concerns. And here's the thing: inspection findings can reopen negotiations even after your initial offer is accepted. If the inspection turns up significant repairs, you have a few options (in fact, [83% of home buyers](https://listwithclever.com/real-estate-blog/the-seller-wont-make-repairs-after-the-inspection-now-what/) successfully negotiate concessions based on inspection findings): - **Request repairs:** Ask the seller to fix the issues before closing. - **Request a credit:** Get money at closing to cover repair costs yourself. - **Request a price reduction:** Lower the purchase price to account for the work that's needed. An inspection contingency in your offer protects you here. It allows you to walk away, or renegotiate, if the inspection reveals problems you're not willing to take on. ### 6. Negotiate closing costs and repairs If the seller won't budge on the purchase price, closing costs offer another path forward. Closing costs typically run [2% to 6%](https://www.nerdwallet.com/article/mortgages/closing-costs-calculator) of the loan amount and cover things like title insurance, appraisals, and administrative fees. Asking the seller to cover a portion of [closing costs](https://www.opendoor.com/articles/how-much-are-closing-costs-for-seller), sometimes called seller concessions, can reduce what you pay out of pocket at closing. This approach often works well when sellers are emotionally attached to their asking price but still want to close the deal. ### 7. Work with your agent on communication A skilled real estate agent understands the local market and knows how to frame requests in ways that keep negotiations moving forward. They can advocate on your behalf without the emotional attachment that sometimes clouds buyer-seller conversations. Let your agent handle direct communication with the seller's side. Real estate transactions involve legally sensitive language, and a misstep in phrasing can create misunderstandings or weaken your position. ### 8. Know when to walk away Being willing to walk away is one of the most powerful tools you have. If the seller won't meet your reasonable terms and the numbers don't work for your budget, moving on is often the right call. [Emotional detachment](https://www.opendoor.com/articles/ways-to-keep-your-emotions-in-check-when-selling-your-home) helps here. It's easy to fall in love with a home, but that attachment can lead to overpaying or accepting unfavorable terms. Going into the process with the mindset that you'll find another home if this one doesn't work out keeps you in a stronger position. ## How much can you negotiate on a house The amount you can negotiate depends on several factors working together. There's no universal rule, but market conditions, the home's condition, and seller motivation all play a role. | **Situation** | **Typical negotiation room** | | Buyer's market | 5% to 10% below asking, sometimes more | | Seller's market | Limited; focus on terms instead of price | | Home needs significant repairs | Request credits or price reductions based on repair costs | | Listed for 5+ weeks | Seller may be more motivated to negotiate | | Recent price reductions | Signals flexibility on price | In competitive markets, you might not have much room to negotiate on price. However, you can still negotiate on terms like closing timeline, included appliances, or inspection contingencies. ## How to negotiate home price with for sale by owner Buying directly from a homeowner, known as a [for sale by owner (FSBO)](https://www.opendoor.com/articles/sell-your-house-without-a-realtor) transaction, requires a slightly different approach. Without a listing agent involved, communication tends to be more direct, and both parties may be less familiar with standard negotiation practices. Getting an independent appraisal can provide valuable leverage in FSBO negotiations. If the appraisal comes in lower than the asking price, you have objective data to support your offer. Even without agents, working with a real estate attorney or title company to handle paperwork helps ensure the transaction goes smoothly. FSBO deals can save on commission costs, but they also require both parties to navigate the process without professional guidance. ## How to negotiate house price as a seller If you're on the selling side, preparation matters just as much. Pricing your home competitively from the start, based on recent comps and current market conditions, helps attract serious buyers and reduces the chance of drawn-out negotiations. Know your bottom line before offers come in. Having a clear sense of the minimum price you're willing to accept, along with which terms are flexible, helps you respond to offers with confidence rather than emotion. Sellers can also negotiate on terms beyond price. A flexible closing date, leaving certain appliances or fixtures, or offering a home warranty can make your home more attractive without reducing the sale price. For homeowners who want to skip the uncertainty of traditional negotiations altogether, requesting a cash offer from a company like Opendoor provides an alternative. You receive an upfront price, choose your closing date, and avoid the back-and-forth of multiple offers and counteroffers. ## Skip the negotiation and get a cash offer from Opendoor Traditional home sales involve weeks, sometimes months, of showings, negotiations, and uncertainty. For homeowners who value certainty and simplicity, there's another path. Opendoor provides upfront cash offers with no showings, no staging, and no negotiation required. You can request an offer online, review the details on your own timeline, and choose a closing date that works for you. [Get a cash offer](https://www.opendoor.com/address-entry) [Get your offer](#) ## FAQs about negotiating home prices ### What is the 70/30 rule in real estate negotiation? The 70/30 rule suggests spending roughly 70% of your time listening and 30% talking during negotiations. The idea is that understanding the other party's needs, motivations, and constraints helps you craft offers and counteroffers that are more likely to succeed. ### Can you offer below asking price on a house? Yes. Offering below asking price is common, especially in buyer's markets or when a home has been listed for several weeks. The right amount depends on comparable sales, the home's condition, and how motivated the seller appears to be. ### How do you negotiate a home price in a seller's market? In competitive markets, buyers often have limited leverage on price. Instead, focus on negotiating terms, such as inspection contingencies, closing timeline, or included items like appliances. A strong pre-approval letter and flexibility on the seller's preferred closing date can also make your offer stand out. ### How do you counter offer on a house as a buyer? A counteroffer responds to the seller's terms with an adjusted price or conditions. Your agent typically handles this communication, presenting your revised offer along with any changes to contingencies, closing costs, or timeline. Counteroffers are a normal part of the process, and most transactions involve at least one round of back-and-forth. ### What should you avoid saying when negotiating a house price? Avoid revealing your maximum budget, criticizing the home harshly, or showing too much emotional attachment. Each of these can weaken your negotiating position by signaling to the seller that you're willing to pay more or that you're unlikely to walk away. | **Supported Locations** | | | **Cities / Areas** | **States** | | [Columbia](/sell/columbia_sc), [Columbus](/sell/columbus_oh), [Corpus Christi](/sell/corpus_christi_tx), [Detroit](/sell/detroit_mi), [East Texas](/sell/east_texas), [El Paso](/sell/el_paso), [Florida Panhandle](/sell/florida_panhandle), [Greensboro](/sell/greensboro_nc), [Greenville](/sell/greenville_sc), [Indianapolis](/sell/indianapolis_in), [Kansas City](/sell/kansas_city), [Killeen](/sell/killeen_tx), [Knoxville](/sell/knoxville_tn), [Las Vegas](/sell/las_vegas), [Little Rock](/sell/little_rock_ar), [Louisville](/sell/louisville_in_ky), [Memphis](/sell/memphis_tn), [Miami](/sell/miami_fl), [Milwaukee-Waukesha](/sell/milwaukee_waukesha_wi), [Minneapolis](/sell/minneapolis), [New Orleans](/sell/new_orleans_la), [New York & New Jersey](/sell/new_york_new_jersey), [Northern Colorado](/sell/northern_colorado), [Oklahoma City](/sell/oklahoma_city_ok), [Omaha](/sell/omaha_ne), [Philadelphia](/sell/philadelphia_pa), [Pittsburgh](/sell/pittsburgh_pa), [Portland](/sell/portland), [Prescott](/sell/prescott_az), [Reno](/sell/reno_nv), [Richmond](/sell/richmond_va), [Salt Lake City](/sell/salt_lake_city), [San Antonio](/sell/san_antonio), [Seattle](/sell/seattle_wa), [San Francisco Bay Area](/sell/sf_bay_area), [South Texas](/sell/south_texas), [Southwest Florida](/sell/southwest_fl), [St Louis](/sell/st_louis), [Tucson](/sell/tucson), [Tulsa](/sell/tulsa_ok), [Virginia Beach](/sell/virginia_beach_va), [West Texas](/sell/west_texas), [Western New York](/sell/western_ny) | [Alabama](/sell/alabama_other), [Arkansas](/sell/arkansas_other), [California](/sell/california_other), [Colorado](/sell/colorado_other), [Connecticut](/sell/connecticut_other), [Delaware](/sell/delaware_other), [Georgia](/sell/georgia_other), [Idaho](/sell/idaho_other), [Illinois](/sell/illinois_other), [Indiana](/sell/indiana_other), [Iowa](/sell/iowa_other), [Kansas](/sell/kansas_other), [Kentucky](/sell/kentucky_other), [Louisiana](/sell/louisiana_other), [Maine](/sell/maine_other), [Maryland](/sell/maryland_other), [Massachusetts](/sell/massachusetts_other), [Michigan](/sell/michigan_other), [Minnesota](/sell/minnesota_other), [Mississippi](/sell/mississippi_other), [Missouri](/sell/missouri_other), [Montana](/sell/montana_other), [Nebraska](/sell/nebraska_other), [Nevada](/sell/nevada_other), [New Hampshire](/sell/new_hampshire_other), [New Mexico](/sell/new_mexico_other), [New York](/sell/new_york_other), [North Carolina](/sell/north_carolina_other), [North Dakota](/sell/north_dakota_other), [Ohio](/sell/ohio_other), [Oklahoma](/sell/oklahoma_other), [Oregon](/sell/oregon_other), [Pennsylvania](/sell/pennsylvania_other), [South Carolina](/sell/south_carolina_other), [South Dakota](/sell/south_dakota_other), [Tennessee](/sell/tennessee_other), [Utah](/sell/utah_other), [Vermont](/sell/vermont_other), [Virginia](/sell/virginia_other), [Washington](/sell/washington_other), [West Virginia](/sell/west_virginia_other), [Wisconsin](/sell/wisconsin_other), [Wyoming](/sell/wyoming_other) | --- *Originally published at [https://www.opendoor.com/articles/briefs/how-to-negotiate-best-price-on-house](https://www.opendoor.com/articles/briefs/how-to-negotiate-best-price-on-house)*