How Much Should You Offer on a Home? Finding Your Regret-Free Number

The Lighter Side of Real Estate • January 28, 2025

For many buyers, deciding what to offer on a home is one of the most nerve-wracking parts of the process. Buyers often find themselves wondering whether they should offer more or less than the asking price.

On one hand, buyers have always wanted to snag a home at the best possible price. Who wouldn’t love the satisfaction of getting a deal? On the other hand, in recent years, many buyers have grown accustomed to bidding wars and offering above asking price just to secure a property. It’s a tricky dance between those two instincts—saving money and winning the house—and it leaves many wondering: How much should I really offer?

Whichever camp you’re in, it’d be nice to have some cut and dry guidance on when you can come in lower, when you have to offer more than asking, and even some insight into how much above or below asking you should come in with your offer.

For instance, while this recent Realtor.com article about whether to offer below or above asking price might sound promising, unfortunately it isn’t the hard and fast answer you may be looking for. The advice basically boils down to:

  • If it’s a buyer’s market or the house has been on the market a long time, you can offer less than the asking price.
  • If it’s a seller’s market or a brand new listing, you’ll probably need to offer more than the asking price.
  • Either way, there’s no absolute answer to what you should do because it depends upon a lot of factors.
  • Ask your agent for help figuring out what to offer given your specific market, and the house you’re about to make an offer on.

All of that is true, but it doesn’t really provide the answer you may be looking for. That’s because there is no absolute answer.

While you should certainly listen to your agent’s insight and advice, it’s ultimately your decision how much to offer for a house. That’s why the best strategy is to find your “regret-free” number—the price that leaves you confident no matter what the outcome.

What Is a Regret-Free Number?

Your regret-free number is the amount you’re comfortable with in every possible scenario. It’s a price you won’t second-guess if the seller rejects your offer, and one you won’t regret if the seller accepts it. Achieving this balance requires careful thought and preparation.

Think of it this way: If the seller rejects your offer, will you wish you had offered more? If so, you haven’t hit your number yet. On the other hand, if the seller accepts your offer, will you feel uneasy about paying too much? That’s a sign you’ve gone too high. Your regret-free number sits in that sweet spot where you can confidently move forward, regardless of the seller’s response.

Tips for Determining Your Regret-Free Number

It’s easy to get swept up in the excitement (or frenzy) when you find a house you want to buy. Emotions can easily override logic, especially if you find yourself in a bidding war. But whether there is stiff competition or not, the amount you are willing to pay for the house should be determined by you, not by how many other buyers are making offers, or how much the seller wants.

Whether your final offer is above or below asking, determining your regret-free number for any particular house takes preparation, research, and a clear understanding of your financial limits. Here are some steps to guide you:

  1. Study the Market: Work with your agent to review comparable sales in the area. These comps give you an idea of what similar homes have sold for recently, helping you assess whether the asking price is fair. While many buyers wait until they are about to make an offer to review “comps” (and some never do!), you should begin reviewing sales data with your agent early on in your home search to get a feel for market values. This will help you make a much more informed decision than other buyers who are just reviewing sales data as they’re about to make an offer.
  2. Consider How Long You Plan to Stay In the Home. If this is your forever home, you might be willing to stretch your budget slightly for the perfect fit. However, if you think you’ll move again in a few years, it’s wise to stay within a more conservative range to ensure you don’t overpay relative to market trends.
  3. Know Your Limits: A mortgage pre-approval may say that you can technically afford the payments, but only you can determine if you can do so comfortably each month. Calculate how much you can comfortably afford, not just in terms of the purchase price but also monthly payments, closing costs, and future expenses.

Deciding how much to offer on a home doesn’t have to be overwhelming. By focusing on your regret-free number—the amount you can commit to without second-guessing—you can approach the process with clarity and confidence. Do your homework, rely on your agent’s expertise, and stay grounded in both your financial and emotional priorities. At the end of the day, the right number isn’t just one that secures the house—it’s one that leaves you feeling at peace with your decision.

Partner with an agent who truly understands the local market. From the earliest stages of your search, they can educate you on property values and market trends, giving you the knowledge you need to make informed decisions. By preparing ahead of time, you’ll be able to approach offers with confidence—whether it means going above, below, or right at the asking price. The more you know upfront, the easier it becomes to navigate the process and find your regret-free number.

The Takeaway:

Deciding how much to offer on a home can feel daunting, but it doesn’t have to be. By understanding the market, doing your research, and setting a regret-free number, you can approach the process with confidence. Work closely with your agent, stay focused on your priorities, and remember that the goal isn’t to get the “perfect” deal—it’s to find a home you love at a price you’re comfortable with. When you do that, you’ll know you made the right decision.


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Thinking About Renting Your House Instead of Selling? Read This First.

By KCM • September 18, 2025
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Mortgage Rates Just Saw Their Biggest Drop in a Year

By KCM • September 17, 2025
Mortgage Rates Just Saw Their Biggest Drop in a Year You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way. On Friday, September 5 th , the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year. What Sparked the Drop? According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result. Basically, we're seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down. Why Buyers Should Pay Attention Now But this isn’t just about one day of headlines or one report. It’s about what the drop means for you. This recent change saves you money when you buy a home. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now: Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings. How Long Will It Last? That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly. So, make sure you’re connected with a good agent and trusted lender. They’ll keep a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here. But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says: “Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” And that’s gives you more reason to hope than you've had in quite some time. Bottom Line This is the shift you’ve been waiting for. Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home you couldn’t afford just a few months ago feel possible again. What would today’s rates save you on your future monthly payment? Let’s connect so you can find out.

Should You Still Expect a Bidding War?

By KCM • September 16, 2025
Should You Still Expect a Bidding War? If you’re still worried about having to deal with a bidding war when you buy a home, you may be able to let some of that fear go. While multiple-offer situations haven’t disappeared entirely, they’re not nearly as common as they used to be. In fact, a recent survey shows agents reported only 1 in 5 homes (20%) nationally received multiple offers in June 2025 . That’s down from nearly 1 in 3 (31%) just a year ago – and dramatically lower than in June 2023 (39%) (see graph below): This trend means you should face less competition when you buy. That gives you more time to make decisions and the ability to negotiate price or terms. It Still Depends on Where You’re Buying Of course, national trends don’t tell the full story. Local dynamics matter, a lot. This second graph uses survey data from John Burns Research & Consulting (JBREC) and Keeping Current Matters (KCM) to break things down by region to prove just how true that is. It shows, while the share of homes getting multiple offers has dropped pretty much everywhere, some areas are still seeing more offers than others: In the Northeast, 34% of homes (roughly 1 in 3) are still receiving multiple offers. That’s more than the national average. But in Southeast , that number drops to just 6%. What’s behind the difference? In general, the areas still seeing bidding wars tend to have lower-than-normal inventory . That imbalance between buyers and available homes keeps pressure on prices and competition. But markets with more listings are seeing conditions cool – and that means fewer bidding wars. Sellers Are More Flexible Than You Might Think Here’s another shift to show you just how much things have changed. According to a Redfin report, almost half of sellers are offering concessions, like covering their buyer’s closing costs or dropping their asking price to get their house sold. That’s a clear sign this isn’t the same ultra-competitive market we saw a few years ago. Back then, sellers rarely compromised. And buyers often waived their inspection or appraisal to try to make their offer stand out. Now, things are different. But again, how often this is happening is going to vary based on where you’re looking to buy. And that’s why you need a local agent’s expertise. Bottom Line If concerns about bidding wars have been holding you back, it may be time to take another look. Nationally, competition is down. In some markets, it’s down significantly. And with more sellers offering concessions, buyers today have more power and flexibility than they’ve had in a long time. Want to find out what the market looks like where you’re buying? Let’s connect.
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