# How to negotiate house price like a pro By Opendoor Editorial Team | 2019-05-02 > There are five big negotiation points to consider when writing an offer. ## Key Takeaways # How to negotiate house price like a pro Negotiating a house price can feel like a high-stakes guessing game — especially when you're not sure how much room you actually have to bargain. The truth is, most sellers expect some back-and-forth, and the right approach can save you thousands of dollars. This guide covers how to prepare before making an offer, proven tactics for negotiating as a buyer or seller, and what to do when the inspection report gives you new leverage. [Get your offer](#) ## How much can you negotiate on a house price The amount you can negotiate on a house price depends on three main factors: current market conditions, the property's condition, and how long it has been listed. In a [buyer's market](https://www.opendoor.com/articles/buyers-vs-sellers-market-how-to-use-the-current-market-to-your-advantage), where there are more homes for sale than buyers, you typically have room to offer 5% to 10% below asking price. In a seller's market, where homes sell quickly and competition is high, offers at or above asking price are more common. Your negotiating power comes from data, not guesswork. [Comparable sales](https://www.opendoor.com/articles/home-sellers-why-you-should-care-about-comps), often called "comps," are recently sold homes nearby that are similar in size, condition, and features. If comps show homes selling for less than the asking price you're looking at, you have a stronger case for negotiating down. On the other hand, if similar homes are selling above asking, you'll likely have less room to bargain. | **Market type** | **Your negotiating power** | **Typical approach** | | Buyer's market (high inventory) | Stronger | Offer below asking, request concessions | | Seller's market (low inventory) | Weaker | Offer at or near asking, compete on terms | | Balanced market | Moderate | Offer slightly below asking with reasonable terms | One more thing to consider: a home that has been sitting on the market for more than five weeks often signals a motivated seller. The longer a property sits, the more likely the seller is to accept a lower offer. ## What to do before you start negotiating home price Good negotiation starts before you ever make an offer. A little preparation goes a long way toward putting you in a stronger position. ### Get pre-approved for a mortgage A [mortgage pre-approval](https://www.opendoor.com/articles/mortgage-preapproval) is a letter from a lender confirming you qualify for a loan up to a certain amount. This is different from a pre-qualification, which is just a rough estimate. Pre-approval involves a formal review of your income, credit, and debts. Why does this matter? Sellers take pre-approved buyers more seriously. It shows you've done your homework and can actually close the deal. Without it, your offer may not carry as much weight. ### Research local market conditions and comps Before making an offer, spend time looking at what similar homes have actually sold for in the area. You can find this information through online real estate tools or by working with your agent. This research gives you a baseline. If you know a three-bedroom home down the street sold for $350,000 last month, you have a reference point for what the home you're interested in is actually worth. That number becomes your anchor during negotiations. ### Analyze how long the home has been listed "Days on market," or DOM, tells you how long a property has been for sale. A home that's been listed for 60 days is in a very different position than one that just hit the market last week. Longer DOM often means the seller is more motivated. They may have already reduced the price once, or they may be more open to negotiating on terms like closing costs or repairs. ### Learn why the seller is moving If you can find out why the seller is moving, you can tailor your offer to their situation. Someone relocating for a job might prioritize a fast closing over getting the highest price. A seller going through a divorce might want flexibility on the move-out date. Your agent can often gather this information from the listing agent. Even small details can help you structure an offer that appeals to what the seller actually cares about. ## How to negotiate house price as a buyer Once you've done your homework, it's time to put together your offer. Here's how to approach the negotiation itself. ### 1. Start with a strategic offer below asking price Your first offer sets the tone for the entire negotiation. The question everyone asks is: "How much lower can I offer?" The honest answer is that it depends on your research. If comps support a lower price, or if the home has been on the market for a while, you have room to start below asking. If the market is competitive and the home just listed, a lowball offer might not even get a response. Your offer works best when you can explain why you arrived at that number. ### 2. Negotiate more than just the purchase price Price is just one part of the deal. There are several other items you can negotiate: - **Closing costs:** You can ask the seller to cover a portion of your [closing costs](https://www.opendoor.com/articles/how-much-are-closing-costs-for-seller), which typically run 2% to 5% of the loan amount. - **Repairs:** If the inspection reveals issues, you can request the seller fix them or provide a credit. - **Fixtures and appliances:** Items like the refrigerator, washer and dryer, or window treatments can be included in the sale. - **Closing timeline:** A faster or slower closing date might appeal to the seller's situation. Sometimes a seller won't budge on price but will agree to cover $5,000 in closing costs. The end result is similar, but it feels different to them. ### 3. Work with your real estate agent to communicate offers Your agent handles the back-and-forth with the seller's agent. This creates a buffer that keeps emotions out of the conversation.[88% of buyers](https://www.nar.realtor/magazine/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes) work with an agent for exactly this kind of expertise. A good agent knows local norms and can read signals from the other side. They can tell you if the seller is firm on price but flexible on timing, or if there's room to push harder. Let them do what they're trained to do. ### 4. Request seller concessions for closing costs [Seller concessions](https://www.opendoor.com/articles/what-are-seller-concessions) are a specific type of negotiation where the seller agrees to pay part of your closing costs. This is often easier for sellers to accept than a straight price reduction because it doesn't lower the official sale price on public record. In fact, [75% of transactions](https://themortgagereports.com/115086/first-time-home-buyer-advice-q4-2024) now include some sort of seller concession. For example, instead of asking for $10,000 off the price, you might ask the seller to contribute $10,000 toward your closing costs. The net effect is similar, but the seller's home still shows a higher sale price. ### 5. Be willing to walk away from the deal Your strongest leverage is your ability to walk away. If the seller won't negotiate reasonably, or if the inspection reveals major problems, walking away protects you from overpaying or inheriting expensive repairs. This doesn't mean you have to be aggressive about it. Simply knowing you have other options gives you confidence during the negotiation. ## How to counter offer on a house as a buyer After you submit your initial offer, the seller has three choices: accept, reject, or counter. A counteroffer changes one or more terms of your original offer, whether that's the price, closing date, or contingencies. When you receive a counteroffer, take time to review it carefully. You can accept the new terms, make another counteroffer, or walk away. It's common for negotiations to go back and forth two or three times before both sides agree. Don't take a counteroffer personally. It's a normal part of the process, and it usually means the seller is interested in working with you. ## How to negotiate price after a home inspection The home inspection often reveals issues that weren't visible during your initial walkthrough. When that happens, you have another opportunity to negotiate. Major issues carry more weight than cosmetic ones. Problems with the roof, HVAC system, foundation, or electrical work are significant. A scuffed floor or outdated light fixture? Not so much. You have a few options when asking for repairs or credits: - **Repair credit:** The seller provides cash at closing to cover the cost of future repairs. - **Price reduction:** The purchase price is lowered to account for the work you'll handle yourself. - **Seller completes repairs:** The seller hires professionals to fix specific issues before closing. Which option you choose depends on the situation. Some buyers prefer a credit so they can hire their own contractors. Others want the seller to handle everything before they move in. ## Common mistakes when negotiating home price Even experienced buyers make mistakes during negotiations. Here are a few to avoid. ### Lowballing your initial offer An offer that's way below market value, without any data to support it, can offend the seller and end the conversation before it starts. If you're going to offer below asking, have a reason you can point to. ### Revealing how much you can actually afford If the seller knows you're pre-approved for $500,000 but you're offering $420,000, they may hold firm on price. Keep your maximum budget to yourself. ### Focusing only on the listing price Buyers sometimes get tunnel vision on the purchase price and forget about everything else. Closing costs, repairs, and included items are all negotiable. A $5,000 credit toward closing costs has the same effect as a $5,000 price reduction. ### Criticizing the home during negotiations Pointing out everything wrong with the house might feel like a negotiating tactic, but it usually backfires. Sellers have an emotional connection to their home. Use the inspection report to negotiate repairs based on facts, not personal opinions. ## How to negotiate house price as a seller Negotiation works both ways. If you're selling, here's how to approach offers. ### Price your home to attract strong offers Overpricing your home often leads to it sitting on the market longer, which weakens your position. In fact, [27.4% of listings](https://www.zillow.com/research/july-2025-market-report-35470/) ended up cutting prices in 2025, the highest share since tracking began. A competitively priced home generates more interest and can lead to multiple offers. ### Respond to lowball offers without emotion A low offer can feel insulting, but it's still a starting point. Instead of rejecting it outright, respond with a counteroffer. You might be surprised where the negotiation ends up. ### Use competing offers to your advantage If you receive multiple offers, you can ask all interested buyers to submit their "highest and best" by a specific deadline. This creates competition and often drives up the final price. ### Consider accepting a cash offer for certainty Cash offers close faster and don't depend on a lender's approval. They also have a lower risk of falling through. For sellers who value certainty, a slightly lower cash offer can be more attractive than a higher financed offer. ## Why cash offers give you more negotiating power [Cash offers](https://www.opendoor.com/articles/what-is-a-cash-offer-in-real-estate-and-why-consider-it) are powerful because they remove uncertainty. With [26% of buyers](https://store.realtor/blog/your-2025-real-estate-outlook-key-insights-from-nars-latest-research/) now paying cash, these offers carry significantly more negotiating power. For buyers, making a cash offer can help you win in a competitive market, even if your offer isn't the highest. For sellers, receiving a cash offer provides peace of mind and a faster path to closing. ## Skip the negotiation and get a cash offer today For homeowners who want to avoid the back-and-forth of traditional negotiations, Opendoor offers a simpler path. You can request a free, no-obligation cash offer and choose your own closing timeline. [Get a cash offer](https://www.opendoor.com/address-entry) [Get your offer](#) **FAQs about negotiating house price** | **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/4-considerations-negotiating-house-price](https://www.opendoor.com/articles/4-considerations-negotiating-house-price)*