How Much Less Should You Offer on a House When Paying Cash?

When you are submitting an offer on a house, it is in your best interest to find out how you can decrease the amount of money you need to pay in cash. This especially can be tricky for first-time buyers, since you will need to be familiar with negotiation skills as well as to be confident enough to stick to the price you are willing to pay. However, if you gather all the necessary information and arm yourself with proper knowledge, you can prepare yourself for a serious approach.

This will allow you to buy your dream home at the best possible price. Negotiating for the property is actually a very significant skill, that is why we prepared for you some very significant information regarding how less should you offer for a house that you want to buy and how you can get the house for the offer you recommended.

So, how much less should you offer on a house when paying cash?


In general, you should know one important trick, and that is that many sellers are willing to accept an offer that is lesser than they asked for in exchange for closing the deal faster. It is very beneficial for buyers to buy a property with cash since in that way they will save a lot of money. We can say that according to studies, over the past 50 years, people who paid the house with cash, actually paid about 12% less than the people that choose the mortgage option. For instance, it is a really big difference to pay a $200,000 price tag than $176,000 one. You are probably wondering why it is such a huge discount and the answer refers to multiple factors.

The primary one refers to the fact is that paying in cash provides certainty to sellers. For instance, when it comes to mortgage offers, there is always a chance that the final deal will fall off. This can happen because of some inspection issues, due to the appraisal or it can happen that the buyer is not qualified for the loan in general. Therefore, many sellers will logically rather accept the lesser money offer because it will provide them a guarantee that they will close the deal and sell the house.

When it’s reasonable to offer even 20% or more below the asked price?


Yes, that is right, as a buyer, you even have the opportunity to ask for an offer that would be 20% lesser than the asked price. Since you are probably wondering in which situation this can happen, let’s get to the point and reveal some additional information for you. For instance, if you want to buy a house that comes with a price of $300,000, asking for 20% off that total price could save you an incredible sum of $60,000.

In general, the most important factor that you can take advantage of in your benefits when offering a price that is below the asked one is referring to an active buyer’s market. In other words, if the market is in your favor, there are fever qualified buyers then there are houses for sale. As you can conclude, this is a significant thing that will provide you with a negotiating power that you can use. Additionally, if the house that you want to buy is on the market fr more than six months, there is a huge chance that the seller will accept a lower offer since he wants to sell the house as soon as possible.

In many cases, sellers even become afraid whether or not they will even sell the house, so when they find some buyer that offers a lesser price, they will probably accept it. One more factor that you can benefit from and use in your favor for offering a lesser price is when there is something wrong with the house. This means that maybe the house needs some foundation problems, some needs for huge replacement, or there is something wrong with the particular system in the house whether it is electric, HVAC, or the plumbing one.

Therefore if you see that home requires some upgrading and needs extensive work, you have the complete right to ask for a lesser price.

Finally, one more case where it could be completely acceptable to offer 20% or even below the asked price is when the house has been priced higher than any other home in that neighborhood. Therefore, it is in your best interest to do your homework and check what is the price of other houses near the one you want to buy and compare that prices. In any of these cases, you need to have strong negotiating skills and be confident enough to ask for a lesser price.

Tips for getting the best possible deal


Buying a house should not be your impulsive decision. You need to prepare yourself properly for this process. In case you already did not find a perfect house for you, you can check a wide selection of house options on where buyers and sellers are interacting. On the other hand, if you already found your dream house you need to resist the temptation to jump and to make the mistake of paying that house more than you should. What you need to do is play hard to get, because if you do not do that the seller will assume that you are even prepared to pay more.

Additionally, you should not be over-enthusiastic. In case there is some serious problem on the property that will make your offer lesser, you should be brave to say that. Whether that applies to the fact that a kitchen is too small, or the bathroom is very dated, or you see some other obvious problem, you should not be afraid to point that out. Act strategically and know when you should negotiate hard! Therefore, be patient and start with taking down the price by 10% of the asking price. After that, see the reaction of the seller and professionally start to point out some flaws that property has which was the reason why they should come down in price.