By Natalie Novarro, REALTOR®
Sotheby’s International Realty – Beverly Hills
Serving the Hollywood Hills • Sunset Strip • Surrounding Los Angeles Neighborhoods
You’ve received an offer on your Los Angeles home. There’s just one problem: it’s below your asking price.
Maybe it’s $25,000 less than you wanted. Maybe it’s $100,000 less. Or perhaps the buyer has submitted an offer so low that you’re wondering whether it’s even worth responding.
Should you accept an offer below asking price, negotiate or wait for another buyer?
The answer depends on more than the difference between the offer and your list price.
I would look at what comparable homes are actually selling for, how long your property has been on the market, the buyer’s terms and what you could realistically expect if you turned down the offer.
Sometimes an offer below asking price is worth negotiating. Other times, holding firm may make sense.
Here’s how I would evaluate it.
1. Your Asking Price Isn’t Necessarily Your Home’s Market Value
One of the first things I explain to sellers is that an asking price is a marketing decision.
It’s the price at which you’ve chosen to introduce your property to buyers. It isn’t a guarantee of what the market will pay.
Suppose your home is listed at $2,495,000 and you receive an offer of $2,350,000.
It’s tempting to focus on the $145,000 difference.
But the more important question is whether $2,350,000 is consistent with recent comparable sales.
If similar homes are selling around that price, the buyer’s offer may deserve serious consideration.
If comparable properties support your asking price and your listing is generating strong interest, you may have more reason to negotiate firmly.
The market evidence matters more than the percentage below asking price.
2. How Long Has Your Home Been on the Market?
Timing can significantly change how I evaluate an offer.
If your home has been listed for three days, you’ve had 15 showings and several buyers are considering offers, you may have reason to wait for additional interest.
But if the property has been on the market for 90 days, showing activity has slowed and this is your first serious offer, that’s a different situation.
I would review what has happened during the listing period.
Have you received other offers? Have buyers consistently mentioned price? Have comparable properties sold while yours remained available?
An offer below asking price can provide valuable information about how buyers perceive your property.
Related: My Los Angeles Home Has Been on the Market for 60 Days — What Should I Do?
3. How Far Below Asking Price Is the Offer?
Not every offer below asking price should be treated the same way.
An offer that’s 2% below asking price is very different from one that’s 15% below.
But even the percentage doesn’t tell the whole story.
A property that’s priced competitively may attract offers close to or above asking price.
A home that’s significantly overpriced may receive offers well below the list price because buyers are comparing it with recent sales rather than the seller’s expectations.
Before deciding whether an offer is reasonable, I would calculate the difference and compare the proposed purchase price with current market evidence.
4. Is It the Price or the Terms That Matter More?
Let’s say you’re selling your Los Angeles home for $2 million.
You receive two offers:
Offer A: $1,975,000, with strong financing, a substantial down payment and a straightforward closing timeline.
Offer B: $2,000,000, but the buyer needs to sell another property first and is requesting significant concessions.
The higher offer isn’t automatically the stronger one.
I would compare the likely net proceeds, contingencies, financing, requested credits, timing and overall transaction risk.
A lower purchase price can sometimes be offset by terms that better suit your circumstances.
Related: Should I Accept a Contingent Offer on My Los Angeles Home?
5. Should I Counteroffer Instead of Accepting?
In many situations, a counteroffer is worth considering.
Receiving an offer below asking price doesn’t mean you have to accept the buyer’s initial number or reject the offer entirely.
Suppose your home is listed at $1,895,000 and a buyer offers $1,800,000.
After reviewing comparable sales, you believe a price closer to $1,850,000 is supported.
You could consider countering at that price or negotiating other terms that are important to you.
The buyer may agree, counter again or decide not to proceed.
The important thing is to approach the negotiation with a clear understanding of your property’s market position and your own priorities.
6. What If the Offer Is Extremely Low?
Some sellers receive offers so far below asking price that they feel insulted.
I understand the frustration, especially when you’ve invested time and money preparing your home for sale.
But I wouldn’t make the decision based on emotion alone.
First, I would evaluate whether the offer reflects current market conditions or whether it’s simply an aggressive opening position.
I’d also consider whether the buyer appears qualified and genuinely interested.
You don’t have to accept an offer that doesn’t meet your needs. But a thoughtful counteroffer may be more productive than ending the conversation immediately.
7. What Are the Costs of Waiting for a Higher Offer?
This is a question that often gets overlooked.
If you reject an offer and continue marketing your home, you may eventually receive a higher one.
But you may also wait several more months without another acceptable offer.
During that time, you could continue paying your mortgage, property taxes, insurance, utilities, HOA dues and maintenance expenses.
You may also have other plans that depend on selling the property.
For example, if you’re carrying $12,000 per month in property expenses, waiting three additional months costs approximately $36,000.
That doesn’t mean you should automatically accept a lower offer.
It means you should compare the potential benefit of waiting with the actual financial and practical costs.
8. What If My Home Is in the Hollywood Hills?
Pricing and negotiating hillside properties can be particularly nuanced.
Two homes with similar square footage may have very different values depending on their views, privacy, architecture, lot usability, parking, access and overall condition.
A buyer considering a home in the Bird Streets may be comparing it with a different set of properties than someone searching in Laurel Canyon or Beachwood Canyon.
For architectural and luxury homes, I would examine the most relevant comparable sales carefully rather than relying on broad neighborhood averages alone.
The more distinctive the property, the more important it becomes to understand what buyers are actually willing to pay for its particular features.
9. Should I Wait for Another Buyer?
That depends on what the market is telling us.
If your listing is new, showings are strong and comparable sales support your asking price, continuing to market the property may be reasonable.
If the home has been listed for months and buyer activity is declining, waiting carries more uncertainty.
I would also consider whether another buyer is likely to have different concerns.
For example, if multiple buyers have commented that your home needs significant updating, rejecting one offer won’t necessarily eliminate that objection for the next buyer.
The question isn’t simply whether someone might eventually pay more.
It’s whether the available evidence supports waiting for that possibility.
10. What If I Receive a Cash Offer Below Asking Price?
A cash offer can be attractive because it removes the buyer’s need to obtain mortgage financing.
But cash doesn’t automatically make an offer better.
I would still review proof of funds, contingencies, closing timelines and any requested concessions.
The size of the discount matters, too.
A cash buyer offering substantially less than a well-qualified financed buyer may not be the right choice for every seller.
Compare the complete offers rather than assuming that cash always deserves a discount.
Related: Should I Accept an All-Cash Offer for Less Money on My Los Angeles Home?
11. How Do I Know Whether to Accept, Counter or Reject?
When evaluating an offer below asking price, I would focus on five questions.
What does the market support? Look at recent comparable sales and current competition.
How has your listing performed? Review showings, feedback, previous offers and days on market.
How strong is the buyer? Consider financing, proof of funds, contingencies and closing terms.
What are your costs and timing requirements? Understand what happens financially and practically if you continue waiting.
Is there room to negotiate? Determine whether a counteroffer could bring the price and terms closer to your objectives.
Once you have those answers, the decision becomes much clearer.
Frequently Asked Questions
Should I accept the first offer if it’s below asking price?
Not automatically. Review the offer against recent comparable sales, current buyer activity and the buyer’s terms. If it’s a serious offer, a counteroffer may be worth considering.
How much below asking price is reasonable?
There’s no universal percentage. A reasonable offer depends on the property’s pricing, condition, location, competition and current market conditions.
Is an offer 10% below asking price a lowball offer?
It depends on whether the asking price is supported by comparable sales. An offer that’s 10% below an overpriced listing may be closer to market value than it initially appears.
Should I counter every offer below asking price?
Not necessarily. Consider the buyer’s qualifications, the gap between the offer and market value, and whether a productive negotiation appears possible.
Can I negotiate terms instead of price?
Yes. Depending on the transaction, buyers and sellers may negotiate closing dates, possession, contingencies, credits and other contractual terms.
Is it better to accept a lower cash offer?
Not always. Cash can eliminate financing-related uncertainty, but the purchase price, proof of funds, contingencies and other terms still need to be evaluated.
What if I reject an offer and don’t receive another one?
You can continue marketing the property, but there is no guarantee another offer will arrive or that it will be higher. Consider your carrying costs and the property’s market performance before making that decision.
Received an Offer Below Asking Price on Your Los Angeles Home?
Before accepting, rejecting or countering an offer, I would want to understand what your property is worth in today’s market and how the buyer’s terms compare with your other options.
Sometimes the right move is to negotiate. Sometimes it’s reasonable to wait. And sometimes an offer below asking price may still represent a strong opportunity.
I work with buyers and sellers throughout Los Angeles, specializing in the Hollywood Hills and Sunset Strip.
If you’ve received an offer and would like a second opinion on your pricing or negotiating strategy, visit my Contact page or call/text 323-719-3360.
About the Author
Natalie Novarro is a real estate agent with Sotheby’s International Realty in Los Angeles, specializing in the Hollywood Hills and Sunset Strip.
With over 20 years of experience and more than $100M in career sales, she works with buyers, sellers, and investors throughout Los Angeles.
For more information or to get in touch, visit the Contact page or call/text 323-719-3360.
This article is for general informational purposes only. Every property and transaction is different. Contractual rights and obligations depend on the specific purchase agreement and circumstances.