1 in 5 Home Listings Had a Price Cut — How Much Below Asking Should Buyers Offer Now?

One in five homes seeing a price cut sounds like an invitation for buyers to start throwing out low offers, but the numbers require more context. Redfin’s latest U.S. housing data shows 19.5% of homes had price drops in August 2026, up from 18% a year earlier.

Redfin also reports that the average home sold for 98.5% of its list price, suggesting many buyers are negotiating without scoring enormous discounts. The better question, then, is not whether to offer below asking, but how far below asking makes sense for a particular property.

Buyers Have More Leverage, But Not Everywhere

Sellers face more competition for buyers. Redfin reported that three in five homes sold below their original asking price in August, while total housing supply reached its highest level since 2020. Redfin’s August housing analysis found new listings also climbed 2.6% from July, giving shoppers additional choices.

Meanwhile, Zillow counted 1.41 million homes for sale in August, 3% more than a year earlier. Those numbers strengthen buyers’ negotiating position, but desirable homes in competitive neighborhoods can still attract multiple offers.

How Far Below Asking Should You Start?

There is no nationwide percentage that works for every home offer below asking, but recent sale-to-list data provide a useful benchmark. With Redfin’s national sale-to-list ratio at 98.5%, a $400,000 listing selling at that ratio would close around $394,000, or $6,000 under asking. A buyer might reasonably investigate an opening offer around 3% to 5% below asking when a property has lingered on the market, already received a price reduction or needs repairs, provided comparable sales support it. That would mean roughly $380,000 to $388,000 on a $400,000 property, although the eventual negotiated price could be higher. Offering 10% below asking without evidence is much riskier because a seller may simply reject the offer rather than counter.

A Price Cut Can Reveal More Than The New Price

A price reduction does not automatically mean a seller is desperate, and buyers should investigate why the home was reduced before making a home offer below asking. Zillow reported that 26.3% of listings had a price cut in August under its methodology, illustrating how common repricing has become.

Zillow’s August Market Report also found homes took a median 27 days to go pending, while the typical U.S. home value was $369,678. A property sitting substantially longer than comparable homes may give buyers additional leverage, particularly after multiple reductions. Buyers should ask their agent to check the original list price, reduction history, days on market, nearby closed sales and whether a previous contract fell through.

The Bigger Opportunity May Be Seller Concessions

Purchase price is only one part of the negotiation, and focusing exclusively on a home offer below asking can leave money on the table. Redfin found sellers provided concessions in 44.7% of U.S. home sales in August, the highest August share in its records dating to 2020. Redfin’s seller-concessions report says concessions can include money toward closing costs, repairs or other expenses, and roughly 15% of buyers received both a concession and a price cut. On a $400,000 home, for example, negotiating $8,000 toward closing costs could preserve cash even if the seller refuses another $8,000 price reduction.

Buyers should compare the long-term value of a lower price with the immediate benefit of keeping more cash available after closing.

Local Conditions Matter More Than National Headlines

National statistics are useful benchmarks, but the smartest home offer below asking should be based on the neighborhood where the property actually sits. In August, the National Association of Realtors reported 1.62 million existing homes for sale, representing 4.9 months of supply, while the median existing-home sale price reached $429,100. NAR’s August existing-home sales report showed inventory was 5.9% higher than a year earlier, but conditions varied considerably by region.

Buyers should examine at least three recently sold comparable properties, not simply assume a national price-cut statistic justifies a steep discount. The strongest offer is one backed by evidence showing what similar homes are actually selling for today.

Let The Property Tell You What To Offer

The current market gives buyers more room to negotiate, but a home offer below asking should still be strategic rather than arbitrary. A recently listed, move-in-ready house may justify an offer near asking, while an overpriced property sitting for 60 days after multiple reductions may provide room for a more aggressive proposal. Inspection findings, comparable sales, seller concessions and days on market can matter just as much as the advertised price. Buyers should also keep appraisal and financing limits in mind rather than treating a price reduction as proof that a home is automatically a bargain.

If one in five homes is getting a price cut, how far below asking would you feel comfortable offering before worrying about losing the house? Share your approach in the comments.

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Evan Morgan

Evan Morgan has been a full-time freelance writer and editor for 10+ years. When not working, he enjoys catching the latest true crime documentary or getting lost in a good book.