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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Why Would I Move with a 3% Mortgage Rate?

By KCM • June 18, 2025
Why Would I Move with a 3% Mortgage Rate? If you have a 3% mortgage rate, you’re probably pretty hesitant to let that go. And even if you’ve toyed with the idea of moving, this nagging thought may be holding you back: “why would I give that up?” But when you ask that question, you may be putting your needs on the back burner without realizing it. Most people don’t move because of their mortgage rate. They move because they want or need to. So, let’s flip the script and ask this instead: What are the chances you’ll still be in your current house 5 years from now? Think about your life for a moment. Picture what the next few years will hold. Are you planning on growing your family? Do you have adult children about to move out? Is retirement on the horizon? Are you already bursting at the seams? If nothing’s going to change, and you love where you are, staying put might make perfect sense. But if there’s even a slight chance a move is coming, even if it’s not immediate, it’s worth thinking about your timeline. Because even a year or two can make a big difference in what your next home might cost you. What the Experts Say About Home Prices over the Next 5 Years Each quarter, Fannie Mae asks more than 100 housing market experts to weigh in on where they project home prices are headed. And the consensus is clear. Home prices are expected to rise through at least 2029 (see graph below): While those projections aren’t calling for big increases each year, it's still an increase. And sure, some markets may see flatter prices or slower growth, or even slight dips in the short term. But look further out. In the long run, prices almost always rise. And over the next 5 years, the anticipated increase – however slight – will add up fast. Here’s an example. Let's say you'll be looking to buy a roughly $400,000 house when you move. If you wait and move 5 years from now, based on these expert projections, it could cost nearly $80,000 more than it would now (see graph below): That means the longer you wait, the more your future home will cost you. If you know a move is likely in your future, it may make sense to really think about your timeline. You certainly don't have to move now. But financially, it may still be worth having a conversation about your options before prices inch higher. Because while rates are expected to come down, it’s not by much. And if you’re holding out in hopes we’ll see the return of 3% rates, experts agree it’s just not in the cards (see graph below): So, the question really isn’t: “why would I move?” It’s: “when should I?” – because when you see the real numbers, waiting may not be the savings strategy you thought it was. And that’s the best conversation you can have with your trusted agent right now. Bottom Line Keeping that low mortgage rate is smart – until it starts holding you back. If a move is likely on the horizon for you, even if it’s a few years down the line, it’s worth thinking through the numbers now, so you can plan ahead. What other price point do you want to see these numbers for? Let’s have that conversation, so I can show you how the math adds up. That way, you can make an informed decision about your timeline.

Don’t Let Student Loans Hold You Back from Homeownership

By KCM • June 17, 2025
Don’t Let Student Loans Hold You Back from Homeownership Did you know? According to a recent study, 72% of people with student loans think their debt will delay their ability to buy a home. Maybe you’re one of them and you're wondering: Do you have to wait until you’ve paid off those loans before you can buy your first home? Or is it possible you could still qualify for a home loan even with that debt? Having questions like these is normal, especially when you’re thinking about making such a big purchase. But you should know, you may be putting your homeownership goals on the backburner unnecessarily. Can You Qualify for a Home Loan if You Have Student Loans? In the simplest sense, what you want to know is can you still buy your first home if you have student debt. Here’s what Yahoo Finance says: " . . . student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible. " And the data backs this up. An annual report from the National Association of Realtors (NAR), shows that 32% of first-time buyers had student loan debt (see graph below): While everyone’s situation is unique, your goal may be more doable than you realize. Plenty of people with student loans have been able to qualify for and buy a home. Let that reassure you that it is still possible, even as a first-time buyer. And just in case it’s helpful to know, the median student loan debt was $30,000 . As an article from Chase says: “ It’s important to note that student loans usually don’t affect your ability to qualify for a mortgage any differently than other types of debt you have on your credit report, such as credit card debt and auto loans.” If your income is steady and your overall finances are solid, homeownership can still be within reach. So, having student loans doesn’t necessarily mean you have to wait to buy a home. Bottom Line Having student loans doesn’t mean buying a home is off the table. Before you count yourself out, talk to a lender to get a clearer picture of what you can afford and how close you are to taking the first step toward homeownership.

Why Buyers Are More Likely To Get Concessions Right Now

By KCM • June 16, 2025
Why Buyers Are More Likely To Get Concessions Right Now Especially in areas where inventory is rising, both homebuilders and sellers are sweetening the deal for buyers with things like paid closing costs, mortgage rate buy-downs, and more. In the industry, it’s called a concession or an incentive. What Are Concessions and Incentives? When a seller or builder gives you something extra to help with your purchase, that’s called either a concession or an incentive. A concession is something a seller gives up or agrees to in order to reach a compromise and close a deal. An incentive , on the other hand, is a benefit a builder or seller advertises and offers up front to attract and encourage buyers. Today, some of the most common ones are: Help with closing costs Mortgage rate buy-downs (to temporarily lower your rate) Discounts or price reductions Upgrades or appliances Home warranties Minor repairs For buyers, getting any of these things thrown in can be a big deal – especially if you’re working with a tight budget. As the National Association of Realtors (NAR) says: “. . . they can help reduce the upfront costs associated with purchasing a home.” Builders Are Making It Easier To Buy It’s not just one builder willing to toss in a few extras. A lot of builders are using this tactic lately. As Zonda says : “Incentives continued to be popular in March, offered by builders on 56% of to-be-built homes and 74% of quick move-in (QMI) homes, which can likely be occupied within 90 days.” That’s because they don’t want to sit on inventory for too long. They want it to sell. And according to the National Association of Home Builders (NAHB), one of the strategies many builders are using to keep that inventory moving (and not just sitting) is a price adjustment (see graph below): Around 30% of builders lowered prices in each of the first four months of the year. While that also means most builders aren’t lowering prices, it also shows some are willing to negotiate with buyers to get a deal done. This isn’t a sign of trouble in the market, it’s an opportunity for you. The fact that the majority of builders offer incentives and roughly 3 in 10 are lowering prices means if you're looking at a newly built home, your builder will probably try to make it easier for you to close the deal. Existing Home Sellers Are Offering More, Too More existing homes (one that someone has lived in before) have been hitting the market, too – which means sellers are facing more competition. That’s why over 44% of sellers of existing homes gave concessions to buyers in March (see graph below): And, if you look back at pre-pandemic years on this graph, you’ll see 44% is pretty much returning to normal. After years of sellers having all the power, the market is balancing again, which can work in your favor as a buyer. But remember, concessions don’t always mean a big discount. While more sellers are compromising on price, that’s not always the lever they pull. Sometimes it’s as simple as the seller paying for repairs, leaving appliances behind for you, or helping with your closing costs. And considering that home values have risen by more than 57% over the course of the past 5 years, small concessions are a great way for sellers to make a house more attractive to buyers while still making a profit. Bottom Line Whether you’re looking at a newly built home or something a little older, there’s a good chance you can benefit from concessions or incentives. If a seller or builder offered you something extra, what would make the biggest difference to help you move forward? Let’s talk about it and see if it’s realistic based on inventory and competition in our local market.
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