What should you offer: list price, over, or under?

How to set an offer that wins the home without overpaying, based on the comps and the market, not the asking price.

The short version

The right offer is not a fixed percentage of the list price. It depends on three things: what comparable homes sold for, how the specific listing is doing, and how competitive the market is right now. The list price is the seller's hope. The comps are reality. Anchor to the comps, then adjust for the market and the listing's situation.

Start with the comps, not the list price

Before you decide over or under, find what similar homes nearby sold for in the last few months. If the list price is in line with those comps, your offer is a small adjustment around it. If the list price sits well above the comps, the home may be overpriced, and you should not anchor to a number the data does not support. (For how to spot that, see how to tell if a listing is overpriced.)

The comps tell you what the home is worth. Everything else tells you how much room you have around that number.

How the market sets your starting point:

Months of supply	Market	What it means for your offer
Under 4 months	Favors sellers	Expect to offer at or above list
5 to 6 months	Balanced	Offer near list, with room to talk
Above 7 months	Favors buyers	Room to offer under list

Read the market temperature

Months of supply tells you who has the upper hand. Under roughly 4 months of inventory is a seller's market: expect competition, and on well-priced homes plan to offer at or above list. Around 5 to 6 months is balanced. Above roughly 7 months is a buyer's market, where you have room to offer under list and negotiate.

In 2026, with the 30-year fixed rate near 6.5% and a majority of homes selling below asking, many buyers have more room than they did in the frenzy years. But this varies sharply by neighborhood and price point, so read your specific market, not the national headline.

Read the specific listing

A fresh listing priced to the comps leaves little room, and a lowball there will simply be ignored. A listing that has sat well past the local average, or already cut its price, is signaling a more flexible seller, and a below-list offer is reasonable. Days on market and price-cut history are public information. Use them to gauge how motivated the seller is before you pick a number.

When to offer over list

Two situations call for going above the asking price: a genuine seller's market, and a home deliberately priced below market to attract bids. If a home is priced under what the comps support, offering above list can still leave you at or below true market value, which is a good deal, not an overpay. (See the overbid strategy for why some homes are priced this way on purpose.)

In a true multiple-offer situation, you can strengthen your position without simply throwing money at it: an escalation clause automatically beats competing offers up to a cap you set, and a larger earnest deposit signals you are serious. Both can help you win without bidding against yourself.

When to offer under list, and how a lowball lands

If a home is overpriced or stale, a below-list offer makes sense, but how you frame it decides whether it works. A lowball with no justification often gets ignored, or worse, makes the seller dig in. An offer supported by comps gives the seller a reason to engage: here is what similar homes sold for, so here is the number. That turns a low offer into a negotiation rather than a standoff. (For how sellers receive low offers, so you can frame yours well, see the lowball offer response.)

Price is only one lever

The number is not the whole offer. Your closing timeline, the contingencies you include (inspection, financing, appraisal), the size of your earnest deposit, and your flexibility on the closing date all matter to a seller, and several of them can win a home without raising your price. A clean, certain offer sometimes beats a higher but shakier one, especially when the seller needs a reliable close. And whatever you decide, stay inside what you can sustain: the most you can offer is capped by what a lender will approve and what your budget carries every month.

How to land on a number

Combine the three reads. On a fresh, well-priced home in a hot market, offer at or above list with strong terms. On a stale or overpriced home in a soft market, offer below list with comp support and clean terms. In between, anchor to the comps and let the listing's age and the market's temperature nudge you up or down. Then set your walk-away number before you start, and hold it.

Frequently asked questions

Should I offer the list price?

Not automatically. The list price is the seller's asking number, not necessarily the home's value. Start from what comparable homes recently sold for, then adjust based on how competitive the market is and how long the specific listing has been sitting. Sometimes the right offer is below list, sometimes above.

When should I offer over the asking price?

In a seller's market with low inventory, or on a home deliberately priced below market to attract multiple offers. If a home is priced under what the comps support, offering above list can still be at or below true market value. In a bidding war, an escalation clause and a larger earnest deposit can help without simply overpaying.

Is it rude to make a low offer?

A low offer with no support often gets ignored or makes the seller less flexible. A below-list offer backed by recent comparable sales gives the seller a reason to engage. The number matters less than the justification: show why the price reflects the market, and a low offer becomes a negotiation rather than an insult.

How do I know if it is a buyer's or seller's market?

Look at months of supply. Under about 4 months of inventory favors sellers and invites competition. Around 5 to 6 months is balanced. Above roughly 7 months favors buyers and gives you room to offer under list. Conditions vary sharply by neighborhood and price range, so check your specific area.

Besides price, what makes an offer stronger?

Terms. A flexible closing date, fewer contingencies, a larger earnest deposit, and a clean financing picture all make an offer more attractive to a seller. A slightly lower but more certain offer sometimes beats a higher but shakier one, especially when the seller needs a reliable close.

Sources: Zillow and Redfin market data on list-to-sale dynamics and 2026 conditions (the 30-year fixed rate near 6.5% and a majority of homes selling below asking), standard real estate guidance on months of supply and buyer versus seller markets, and industry material on escalation clauses and offer terms. Local conditions vary, so treat thresholds as general guidance.

This article is general information, not financial or real estate advice. Your situation and local market are specific; work with a qualified local agent.