By Natalie Novarro, REALTOR®
Sotheby’s International Realty – Beverly Hills
Serving the Hollywood Hills • Sunset Strip • Surrounding Los Angeles Neighborhoods
You’ve found a home in Los Angeles that you really like.
Maybe it’s been on the market for a few weeks. Maybe the seller has already reduced the price. Or maybe you simply think the asking price is too high.
Now you’re wondering:
How much below asking price should I offer?
Should you offer $25,000 less? $50,000? Ten percent below asking?
The answer depends on the property, the competition, and what comparable homes have actually sold for.
I’ve worked in real estate for over 20 years, and one thing I’ve learned is that the asking price doesn’t necessarily tell you what a home is worth—or what a seller might accept.
Some Los Angeles homes sell below asking. Others attract multiple offers and sell above asking. And some sit on the market because buyers simply don’t see the value at the listed price.
If you’re considering making an offer, here’s how I would approach the decision.
1. Is It Normal to Offer Below Asking Price in Los Angeles?
Yes. Making an offer below asking price is a normal part of real estate negotiations.
But that doesn’t mean every seller will entertain one.
A home that’s priced competitively and attracting significant interest may sell at or above its asking price.
A property that’s been sitting on the market, has undergone several price reductions, or needs substantial work may offer more negotiating room.
The important distinction is this:
A home being listed at a particular price doesn’t automatically mean it’s worth that amount.
And offering below asking doesn’t automatically mean you’re getting a bargain.
2. How Much Below Asking Price Should You Offer?
There isn’t a universal percentage that works for every Los Angeles property.
I wouldn’t recommend automatically offering 5% or 10% below asking simply because you want a discount.
Instead, I would start with three questions:
- What have comparable homes recently sold for?
- How does this property compare in condition, location, size, and amenities?
- What does the property’s listing history tell us?
For example, imagine a home is listed for $2 million.
If comparable homes are selling around $1.85 million, an offer below asking may be supported by the market.
But if comparable homes are selling around $2.1 million, that same $2 million asking price might actually be attractive.
The goal isn’t to negotiate the biggest discount. It’s to buy the property at a price that makes sense.
3. Does It Matter How Long the House Has Been on the Market?
Absolutely.
Days on market can be one of the first things I examine when evaluating negotiating opportunities.
A property that’s been listed for five days is in a very different position from one that’s been listed for 120 days.
But days on market alone don’t tell the whole story.
I also want to know:
- Has the seller reduced the asking price?
- Has the property been withdrawn and relisted?
- Has it previously been in escrow?
- Have there been offers that didn’t work out?
- Is the home vacant or occupied?
- Is the property competing with similar homes at lower prices?
Some of that information may be available through the listing history. Other details may require a conversation with the listing agent.
A home that’s been sitting for several months could present an opportunity, but we still need to understand why it hasn’t sold.
4. What If the Seller Has Already Reduced the Price?
A price reduction can be a useful signal.
It may indicate that the seller recognizes the original asking price wasn’t attracting sufficient interest.
However, it doesn’t necessarily mean the seller is willing to accept another substantial discount.
For example, a home originally listed at $2.4 million might now be offered at $2.1 million.
If comparable sales support $2.1 million, the property may finally be priced correctly.
On the other hand, if the market suggests a value closer to $1.95 million, there may still be room for negotiation.
I would evaluate the current price against the market rather than assume the previous reduction automatically makes it a good deal.
5. What If the House Needs Repairs or Updating?
Condition is an important factor when deciding what to offer.
An outdated kitchen is different from a property with significant foundation issues.
Cosmetic improvements can often be estimated more easily than major structural or hillside-related work.
In the Hollywood Hills, I pay particular attention to issues that can affect the overall cost of ownership, including:
- Foundation and retaining-wall conditions
- Drainage and slope-related concerns
- Roof condition
- Access and parking
- Unpermitted additions or alterations
- Insurance availability and cost
- Deferred maintenance
These issues may affect what a buyer is comfortable paying, but they should be evaluated by appropriately qualified professionals.
If a property requires substantial work, the asking price should be considered alongside the likely costs, risks, and limitations of making those improvements.
A house that’s $150,000 less expensive than comparable homes isn’t necessarily a bargain if it needs $300,000 in repairs.
6. Can You Offer 10% Below Asking Price?
You can submit an offer 10% below asking price, but whether it’s a reasonable strategy depends on the property.
On a $2 million home, that’s a $200,000 difference.
If the home has been sitting for months and comparable sales support a lower value, that offer might be worth considering.
But if the property is newly listed, competitively priced, and receiving strong interest, a 10% discount could be unrealistic.
I would rather explain to a seller why our offer makes sense based on actual market evidence than simply submit an arbitrary number.
And sometimes, offering substantially below asking can end the conversation before meaningful negotiations begin.
7. Should You Make a Low Offer on a Home You Really Love?
This is where I think buyers need to be particularly thoughtful.
If you’ve found a property that checks nearly every box, you need to balance negotiating with the possibility of losing it.
That doesn’t mean you should overpay.
But I would want to know whether the property is easily replaceable.
If you’re looking for a fairly common property type with plenty of competing inventory, you may have more flexibility.
If you’re looking at a unique architectural home, a particular view property, or a house on a specific Hollywood Hills street, comparable alternatives may be limited.
The right offer strategy should reflect both the property’s market value and how difficult it would be to find something comparable.
8. What If There Are Multiple Offers?
If a property is receiving multiple offers, the negotiation changes.
You may not have the same opportunity to offer substantially below asking price.
But I still wouldn’t recommend blindly increasing your offer without evaluating the comparable sales.
I would want to understand the property’s value, your financing, your comfort level, and the terms you can realistically offer.
Sometimes the strongest offer isn’t simply the highest price.
Financing strength, deposit, timing, contingencies, and other terms may also matter to a seller.
Any proposed changes to contingencies should be considered carefully, with an understanding of the risks involved.
9. Can You Negotiate More Than Just the Price?
Yes.
Price is only one part of a purchase offer.
Depending on the situation, buyers and sellers may negotiate:
- Closing timelines
- Inspection and other contingencies
- Repair credits
- Seller concessions
- Certain included appliances or fixtures
- Possession and occupancy arrangements
- Other transaction-specific terms
For example, a seller who needs additional time to move may value flexibility around possession.
Another seller may prioritize a straightforward closing with fewer uncertainties.
Understanding what matters to the seller can sometimes help structure an offer that works for both parties.
Of course, buyers should never agree to terms they don’t fully understand simply to make an offer more attractive.
10. Should You Ask the Listing Agent What the Seller Will Accept?
I think communication with the listing agent can be valuable.
Before submitting an offer, I may ask questions such as:
- Have you received any offers?
- Is the seller reviewing offers on a particular date?
- Has there been significant showing activity?
- Are there any particular terms the seller would prefer?
- Is there anything important we should know about the property’s availability or transaction timeline?
The listing agent may not disclose the seller’s bottom line, and you shouldn’t assume they will.
But understanding the circumstances can help us determine how to approach the offer.
11. What If Your Offer Is Rejected?
A rejected offer doesn’t necessarily mean the opportunity is over.
The seller may counter.
They may decline without making a counteroffer.
Or they may decide to wait and see whether another buyer comes along.
Depending on the situation, it may make sense to revise your offer, maintain your position, or move on.
I don’t think buyers should become so attached to negotiating a particular discount that they lose sight of the bigger decision.
Would you still be happy owning this home at the price you’re considering?
That’s ultimately more important than whether you negotiated $25,000 or $50,000 off the asking price.
12. How Would I Determine What to Offer on a Los Angeles Home?
If I were representing a buyer considering an offer below asking, I would begin by reviewing the property’s competitive position.
That includes recent comparable sales, active competition, condition, listing history, price reductions, and any information we can reasonably obtain about the seller’s situation.
For a Hollywood Hills property, I would also look closely at features that can make direct comparisons difficult.
Two homes with similar square footage may have very different values because of views, privacy, architectural character, access, lot usability, and location.
I would then discuss a realistic offer range, potential negotiating strategies, and the trade-offs involved.
The goal is to help you make an informed decision rather than simply guess at a number.
Frequently Asked Questions
Is offering 5% below asking price reasonable in Los Angeles?
It can be, depending on the property and market conditions. But 5% isn’t a universal negotiating rule. Comparable sales, condition, days on market, and competition should guide the offer.
Is offering 10% below asking price insulting?
Not necessarily. An offer should be evaluated in the context of the property’s market value and circumstances. However, an unsupported low offer may be rejected without a counteroffer.
Can I offer below asking price on a newly listed home?
Yes, but a newly listed home attracting significant interest may provide less negotiating room than one that has been available for several months.
Does a price reduction mean the seller is desperate?
No. A price reduction may simply reflect an adjustment to market conditions or the seller’s pricing strategy. It doesn’t automatically indicate financial distress or urgency.
Can I negotiate on a Hollywood Hills home that’s been sitting on the market?
Potentially. Longer marketing time may create opportunities, but buyers should still examine comparable sales, property condition, listing history, and the reasons the property hasn’t sold.
Should I get preapproved before making an offer?
If you’re financing the purchase, obtaining lender preapproval before submitting an offer is generally advisable. It helps establish your purchasing capacity and can make your offer more credible.
Do I need a buyer’s agent to make an offer in Los Angeles?
You aren’t necessarily required to use a buyer’s agent, but having your own representation can help you evaluate the property’s value, structure an offer, understand transaction terms, and navigate negotiations. Buyer representation agreements and brokerage compensation should be discussed before proceeding.
Thinking About Making an Offer on a Los Angeles Home?
If you’ve found a home you like but aren’t sure what to offer, that’s exactly the kind of conversation I enjoy having with buyers.
Sometimes there’s meaningful room to negotiate.
Other times, the asking price may already be competitive.
And in the Hollywood Hills, where properties can differ dramatically from one street to the next, understanding the individual home is particularly important.
If you’re considering making an offer on a property in the Hollywood Hills, Sunset Strip, or surrounding Los Angeles neighborhoods, I’d be happy to help you evaluate the price and develop an offer strategy.
Visit my Contact page or call/text 323-719-3360.
You can also read my related article: Can You Buy a Home in the Hollywood Hills for Under $1 Million?
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 and does not constitute legal, financial, lending, or inspection advice. Property values, negotiating conditions, contract terms, and financing requirements vary. Buyers should independently verify relevant information and consult qualified professionals as appropriate.