How Much Below Asking Price Should You Offer on a Home That Has Been Sitting?

Quick answer: there is no automatic percentage you should subtract from the asking price simply because a Silicon Valley home has been sitting on the market. The right offer should be based on what the home is worth today, using recent comparable sales, current competing listings, condition, price history, days on market, and seller leverage.

Sometimes that means offering at asking.

Sometimes 2% or 3% below may be reasonable.

Sometimes the evidence supports a much larger adjustment.

And sometimes a home that has already been reduced is finally priced correctly.

That is why I would be very cautious with rules like: “Offer 5% below after 30 days.”

Or: “Take 10% off anything that has been sitting for two months.”

Real estate does not work that neatly, especially in Silicon Valley.

Start With Value, Not a Discount Percentage

Suppose a home is currently listed at $2 million.

One buyer may immediately think:

“It has been sitting. Let's offer $1.8 million.”

But why $1.8 million?

If the closest comparable sales support $1.95 million, then $1.8 million may simply be an aggressive offer without much evidence behind it.

On the other hand, if similar homes have been selling around $1.8 million and this seller has already spent six weeks trying to get $2 million, then an offer closer to $1.8 million may be very well supported.

The better question is not: “How far below asking should I go?”

It is: “What does this house appear to be worth now?”

Why Days on Market Can Create Negotiating Power

Longer market time matters because the seller has received more feedback.

Buyers have seen the listing.

Some may have toured it.

Others may have reviewed disclosures.

Comparable homes may have come and gone.

And yet this one remains available.

That can change the negotiation.

In September 2026, homes in the San Jose-Sunnyvale-Santa Clara metro spent a median 35 days on market, while active inventory was 17.4% higher than a year earlier.

So a home that has been available substantially longer than similar nearby properties deserves a closer look.

But days on market tell you there may be leverage.

They do not tell you exactly how many dollars that leverage is worth.

First Ask Why the Home Has Been Sitting

Before deciding how much below asking to offer, try to understand why buyers have not purchased the home.

Possible reasons include:

The original price was too high.

The current price may still be too high.

The property needs work.

The location appeals to fewer buyers.

The floor plan is unusual.

It has faced stronger competing listings.

A previous transaction fell through.

The seller has restrictive showing requirements.

Or the property simply has a smaller natural buyer pool.

Each explanation calls for a different offer strategy.

Look at the Entire Price History

Imagine this:

A seller originally lists at $2.4 million.

After several weeks, they reduce to $2.25 million.

Then they reduce again to $2.1 million.

You might be tempted to think:

“They're desperate. Let's offer $1.9 million.”

But the original $2.4 million price is almost irrelevant if the market evidence now supports $2.1 million.

The seller may finally have reached the correct number.

Always compare the current asking price with the current market.

Do not negotiate simply against where the seller started.

Price Reductions Tell You Something, But Not Everything

Price reductions have become more common.

In September, 16.4% of listings in the San Jose-Sunnyvale-Santa Clara metro had a price reduction, up 4.6 percentage points from a year earlier.

That tells us more sellers are responding to market feedback.

But a price reduction does not automatically mean:

Another reduction is coming.

The seller is desperate.

Or the home is still overpriced.

The reduced price may finally attract the buyers who ignored it previously.

Should You Offer 5% Below Asking?

Maybe.

But not because 5% is a magic number.

On a $2 million home, 5% is $100,000.

That is a meaningful adjustment.

There should be a reason for it.

Perhaps:

Comparable sales support around $1.9 million.

The home needs substantial work.

It has been available significantly longer than similar listings.

There are several competing homes offering more value.

The seller has already reduced the price, but buyer activity remains weak.

Now a 5% lower offer might be defensible.

But if recent comps support $2 million and another buyer is interested, an automatic 5% discount could simply cost you the home.

What About 10% Below Asking?

The same principle applies, but the evidence should generally be stronger.

Ten percent on a $2 million property is $200,000.

A gap that large may make sense if:

The asking price is significantly disconnected from comparable sales.

The property requires substantial work.

There are meaningful location or layout disadvantages.

The seller's price has not adjusted despite extensive market exposure.

Or the surrounding competition is clearly superior at lower prices.

But “it's been sitting” alone does not justify a 10% discount.

Use Comparable Sales To Establish the Range

Recent comparable sales are usually the foundation of the offer.

Look for properties that are reasonably similar in:

Location.

Square footage.

Lot.

Condition.

Bedrooms and bathrooms.

Architecture.

Floor plan.

Remodeling.

Parking.

And other meaningful characteristics.

Then adjust for differences.

Suppose three strong comparable sales indicate a range of approximately $1.9 million to $1.98 million.

If the listing is asking $2.1 million after 45 days, that gives you a rational basis for negotiating below asking.

You are not simply asking for a discount.

You are making an argument about value.

Compare the Homes Available Right Now

Past sales matter.

Today's competition matters too.

San Jose metro buyers had substantially more active listings to choose from in September than a year earlier.

Suppose the home you are considering asks $2 million.

But three similar homes are available at:

$1.9 million.

$1.925 million.

$1.95 million.

The seller is competing with those properties whether they like it or not.

Current alternatives can strengthen your negotiating position.

Condition Can Justify a Lower Offer

This is where buyers need to separate cosmetic issues from expensive ones.

A dated kitchen may affect value.

But it is very different from discovering that the home may need:

A roof.

Foundation work.

Major drainage corrections.

Electrical upgrades.

Plumbing replacement.

HVAC.

Or other significant repairs.

If the asking price assumes a condition similar to recently renovated comps but the property needs substantial work, your offer should reflect that difference.

Do Not Double-Count Repairs

This is another common mistake.

Suppose a comparable remodeled home sold for $2.2 million.

The home you are considering needs $150,000 of work and is listed at $2.05 million.

You may conclude:

“I should offer $1.9 million because it needs $150,000.”

But perhaps the seller has already effectively accounted for much of that work by listing $150,000 below the remodeled comp.

Make sure you understand what the current asking price already reflects.

Micro-Location Can Support a Discount

Two homes in the same neighborhood may not deserve the same value.

One might sit:

On a quiet interior street.

Another on a major road.

One may have:

A private backyard.

Another may back onto commercial property.

One may have significantly better walkability or positioning.

These differences can justify meaningful value adjustments.

If the seller is using superior-location comps to support their asking price, the home may still be overpriced even after a reduction.

A Difficult Floor Plan Can Matter Too

Some features are expensive to change.

Others may be impossible to fully correct.

Examples include:

An awkward addition.

Limited bedroom privacy.

Disconnected living areas.

Very small secondary bedrooms.

An unusual primary-bedroom location.

Limited storage.

If the layout has consistently narrowed buyer interest, that should be considered in both your purchase price and your future resale expectations.

Find Out if Anyone Else Is Interested

This can immediately change the strategy.

A seller with no offers after 50 days may seriously consider an offer below asking.

But if a recent reduction suddenly generated two other offers, your leverage may disappear quickly.

Before deciding how aggressive to be, gather as much legitimate information as possible about:

Current offers.

Disclosure requests.

Recent showings.

Second visits.

Offer deadlines.

And seller timing.

You are negotiating against current demand, not yesterday's demand.

Consider What the Seller Actually Wants

Price is only one part of an offer.

A seller who has been waiting may value certainty.

Perhaps they care about:

A specific closing date.

A quick close.

More time before possession.

Strong financing.

Reasonable contingency periods.

Or another term important to their move.

If you can solve a seller's problem, you may be able to negotiate more effectively on price.

A Lower Price Is Not Always the Most Valuable Concession

Suppose you are deciding between:

$25,000 off the purchase price.

Or an allowable $25,000 seller credit that helps with closing costs or financing.

Depending on your loan and financial situation, those two concessions may affect you very differently.

Similarly, keeping an important contingency may be worth more to you than squeezing another small amount from the purchase price.

Define what you actually want before negotiating.

How Far Below Asking Should You Start?

There is no universal answer, but I would think in terms of market-supported ranges, not standard discounts.

For example:

If the asking price is already supported by recent comps, your opportunity may be in terms rather than a significant price reduction.

If the home appears roughly 2%–3% above supported value, an offer in that range may make sense.

If the evidence suggests the property is 5% below the seller's current expectations, that may be your number.

If there is a much larger gap, the offer may need to be substantially below asking.

The percentage is the result of the analysis.

It should not be the starting point.

What if You Are Worried About Offending the Seller?

Buyers sometimes hesitate to make a lower offer because they fear insulting the seller.

I would distinguish between a low offer and an unserious one.

An offer supported by:

Comparable sales.

Condition.

Market time.

Price history.

And current competition.

can be presented professionally even if it is meaningfully below asking.

The seller can:

Accept it.

Reject it.

Counter it.

Or decline to engage.

The goal is not to avoid disagreement.

It is to make a rational offer you are comfortable performing.

But Do Not Negotiate Just To “Win”

This is equally important.

Suppose the house is asking $2 million.

Your analysis suggests $1.95 million is fair.

You negotiate the seller to $1.94 million.

Then you walk away because they will not accept $1.925 million.

At some point, the negotiation can become more important than the property itself.

Before making the offer, establish:

What you believe the house is worth.

What you are personally willing to pay.

Your ideal price.

And your walk-away price.

Those are not necessarily the same number.

Your First Offer and Maximum Price Are Different

This is a useful distinction.

You might believe a home is worth up to $1.95 million.

That does not necessarily mean your first offer should be $1.95 million.

If there is little competition and the seller has room to negotiate, you might begin lower.

But know where your ceiling is before negotiations begin.

Otherwise, every counteroffer becomes an emotional decision.

Example: A Home Listed at $2 Million

Imagine a home has been listed for 50 days at $2 million.

It originally started at $2.15 million.

Recent comparable sales suggest:

$1.9 million to $1.95 million.

The property also needs some updating.

There are no current offers.

A buyer might reasonably decide to begin below $1.95 million because:

The seller has already received significant market exposure.

The original price was rejected.

Comps support a lower range.

The condition creates additional cost.

That does not mean one exact offer is universally correct.

But now the discount has a rationale.

Example: Another $2 Million Home

Now imagine a different property.

It was originally $2.1 million.

After three weeks, the seller reduces to $2 million.

Recent comparable sales support approximately $2 million.

The house is in good condition.

Two buyers schedule second showings after the reduction.

The fact that the home has “been sitting” matters much less.

The new price may have solved the problem.

Offering $1.8 million simply because the original listing did not sell would ignore the current market evidence.

How Silicon Valley's Current Market Changes the Conversation

September data illustrates why property-specific analysis matters.

Active San Jose metro inventory was up 17.4% year over year, giving buyers more alternatives.

At the same time, the metro's median market time was just 35 days, substantially faster than the national 61-day median.

Meanwhile, 16.4% of metro listings had reduced their price.

That is not a market where every seller has complete leverage.

It is also not a market where buyers can assume every listing is negotiable by 10%.

It is a market where the individual property increasingly determines the strategy.

What About Willow Glen?

This is especially true in Willow Glen.

Homes that look similar on paper can differ significantly in:

Street.

Lot.

Condition.

Architecture.

Floor plan.

Remodeling.

Previous additions.

Proximity to Lincoln Avenue.

And current competition.

If a Willow Glen home has been sitting, compare it with the homes buyers chose instead.

Then ask:

What did those homes offer that this one did not?

And: Has the price adjusted enough to compensate for the difference?

That is usually more useful than simply counting days on market.

A Simple Buyer Checklist Before Offering Below Asking

Before deciding on your number, answer these questions:

What do the best recent comps support?

How does this home compare with those properties?

What else can I buy for similar money today?

How long has this listing been available relative to similar homes?

Has it already reduced its price?

Why has it not sold?

What do the disclosures and inspections show?

What repairs should be reflected in value?

Are there current competing buyers?

What does the seller appear to value?

And finally: What is this home worth to me?

Once you know those answers, the offer becomes much easier to structure.

The Bottom Line

There is no standard percentage below asking that Silicon Valley buyers should offer on a home that has been sitting.

Do not automatically offer:

5% below.

10% below.

Or some amount based only on days on market.

Instead, determine the home's current market value.

Then compare that value with the asking price.

If the evidence supports the asking price, there may not be a large discount available.

If the evidence shows the seller remains meaningfully above the market, a lower offer may be entirely appropriate.

And if longer market time, condition issues, competing inventory, and seller timing all line up, you may have substantial leverage.

The goal is not to figure out how much you can take off the asking price.

The goal is to figure out what the home is actually worth, and whether you can buy it for a number that makes sense.