How Much Should You Offer on a Home? A Buyer’s Guide

Buying a home is one of the biggest financial decisions you’ll ever make. When you’ve found the house of your dreams, the next step is both exciting and daunting: deciding how much to offer. Offer too little, and you might lose out. Offer too much, and you risk overpaying. 

Factors to Consider When Making an Offer

Determining the right offer for a home involves more than just relying on the asking price. Here are key factors to take into account:

1. Market Conditions

Is it a buyer’s or seller’s market? In competitive markets, you might need to offer above the asking price to stay competitive, while in slower markets, there may be room for negotiations. 

Seller’s Market

In a seller’s market, there’s a shortage of homes for sale, leading to higher listing prices and more buyers competing for fewer properties. This often results in bidding wars, pushing home prices above the listing price. If you’re buying in a seller’s market, be prepared to make competitive offers, often at or above the asking price.tiation.

Buyer’s Market

A buyer’s market occurs when there’s an abundance of homes for sale and fewer buyers looking to purchase. With less competition, buyers have more negotiating power. It’s common to make offers below the listing price, and sellers may be more willing to accept contingent offers or provide concessions.

2. Comparable Sales

Recent sales of similar homes in the area provide valuable benchmarks. Look at price trends for properties with similar size, features, and locations.

3. Condition of the Property

Does the home need major repairs or updates? Make sure to review any disclosures provided by the seller. Tools like TurboHome’s Property Risk Analysis helps quickly identify potential costs and risks that could impact your offer.

4. Days on Market

Homes that have been listed for a while may offer more negotiation flexibility, while newly listed homes often attract more competitive offers.

5. Your Financial Position

Factor in your budget, loan approval, and the potential for other costs like repairs, closing fees, or moving expenses. You can use tools like a home affordability calculator to calculate the maximum offer you can make.

Use tools like TurboHome’s Home Valuation Report to help take the guesswork out of this critical decision. The report provides a comprehensive, unbiased evaluation of a property’s fair market value, helping you craft an offer that’s competitive, fair, and informed. 

Why Getting the Offer Right Matters

In the competitive world of real estate, making an informed offer is crucial. Overpaying for a home can strain your finances for years to come, while an offer that’s too low could cost you the opportunity to own the property. The key is finding the sweet spot—a number that reflects the home’s true market value while keeping you competitive in the bidding process. This is easier said than done, especially in today’s fast-moving market.

When to Offer Over the Asking Price

There are situations where offering over the asking price is the right move, particularly in a competitive seller’s market. If multiple buyers are vying for the same home, a higher offer could give you an advantage and secure the property. Exactly how much over the asking price you should offer depends on the specifics of the listing and the local market. It’s essential to know your financial limits. While a higher offer may win the deal, you don’t want to commit to a price that could strain your finances later. This is a good time to rely on your real estate agent for advice and expertise. 

When to Offer Under the Asking Price

In certain circumstances, offering less than the asking price can work in your favor—especially in a buyer’s market or when a property has been on the market for an extended period.

• Less than 10% below asking price: Suitable for properties in fair condition that may require minor cosmetic updates. For move-in-ready homes, stick closer to the asking price to improve your chances of acceptance.
• 10%–20% below asking price: A reasonable range for homes needing significant updates, such as new flooring or appliance upgrades. This range can help offset renovation costs.
• 20% or more below asking price: This is considered a lowball offer and is typically appropriate for homes requiring extensive repairs, such as fixing plumbing or electrical systems, addressing foundation issues, or mitigating severe water damage.

Home Valuation Reports: Data-Driven Insights

Tools like TurboHome’s Home Valuation Report provide clarity and confidence when determining how much to offer. Unlike traditional real estate agents who might rely on vague estimates or overly optimistic numbers, we use advanced tools, local expertise, and deep insights to deliver accurate valuations. Here’s what sets us apart:

What’s included in the report

• Analysis of Fair Market Value: A clear evaluation of what the home is worth today based on current market conditions.
• Comparable Sales Data: Recent transactions for similar homes in the area to provide valuable benchmarks.
• Third-Party Estimates: TurboHome includes data from trusted external sources to add an additional layer of accuracy.
• Trusted Offer Recommendations: Because TurboHome operates on a flat-fee model, we don’t earn more if you spend more. This means our advice is always unbiased and aligned with your best interests.

Why Choose TurboHome for Your Valuation Needs?

The traditional real estate model is riddled with inefficiencies. Agents typically earn a percentage-based commission, creating a potential conflict of interest. TurboHome’s flat-fee model eliminates this bias, ensuring that our valuation reports and advice are truly in your best interest.

By combining cutting-edge technology with local market expertise, TurboHome empowers you to make smarter decisions throughout your homebuying journey. Our Home Valuation Report is just one of the ways we’re redefining real estate for the modern buyer.

Don’t let uncertainty hold you back from securing your dream home. TurboHome’s Home Valuation Report provides the data and insights you need to make confident, informed offers. Whether you’re a first-time buyer or a seasoned homeowner, our tools and expertise are here to help you every step of the way.

Start today and see how TurboHome can make your homebuying experience simpler, smarter, and more successful.