What is a good offer on a Northwest Hills home?

At a Glance

When buyers ask me, “What is a good offer on a Northwest Hills home?”, the first thing I would say is that there is no universal percentage.

Offering 5% below asking might be reasonable on one property and completely unrealistic on another.

Northwest Hills has a wide range of homes, from older properties that may need substantial updating to extensively remodeled homes, view properties, larger lots, and higher-end homes. Because the properties are so different, a good offer needs to be based on the specific house rather than simply applying a rule such as “always offer 10% below asking.”

The starting point should be understanding what the home is actually worth in the current market.

How Do You Determine What a Northwest Hills Home Is Worth?

The best place to start is with comparable sales, or “comps.”

Comparable properties are recently sold homes that are similar enough to help establish a reasonable range of value. NAR explains that a comparative market analysis considers recently sold, active, and under-contract properties, along with characteristics such as size, location, amenities, and condition.

For Northwest Hills, I would look beyond square footage.

Two houses with 2,500 square feet may have very different values because one has:

The question is not simply:

“What are other Northwest Hills homes selling for?”

It is:

“What are homes that are genuinely comparable to this one selling for?”

That distinction can change the offer considerably.

Should You Offer Below the Asking Price?

Sometimes.

But the amount you offer below asking should have a reason behind it.

A buyer might reasonably offer below the list price when:

On the other hand, making a low offer simply because you assume the seller expects to negotiate can work against you.

A seller who priced the home correctly may view an aggressive low offer as a sign that the buyer is not serious.

NAR's guidance on offers emphasizes that comparable properties, competition, and the home's condition are important considerations when evaluating price.

What If the Northwest Hills Home Is Priced Correctly?

This is where buyers sometimes get caught up in the idea of getting a “deal.”

If a home is already priced at or near its market value, a good offer might be close to asking price.

For example, imagine a home is listed at $1.5 million.

If comparable properties support a value around $1.45 million to $1.55 million, the home is in reasonable condition, and there is limited competition, an offer around $1.45 million might be worth discussing.

But if the same property has been carefully renovated, has a desirable lot, has a strong view, and is priced at $1.5 million while comparable homes support $1.55 million, offering $1.35 million simply because you want a discount may not be a good strategy.

The objective should be to identify value, not just negotiate for the sake of negotiating.

How Much Below Asking Is Too Low?

There is no universal percentage.

Instead of starting with a percentage, start with the evidence.

Consider this example:

List price: $1,500,000

Estimated market value: $1,450,000–$1,500,000

Home condition: Good

Days on market: Moderate

Competition: Several similar homes

An offer around $1.45 million might be reasonable.

Now consider:

List price: $1,500,000

Estimated market value: $1,350,000–$1,400,000

Home condition: Significant updating needed

Days on market: Long

Competition: Several better-positioned homes

A materially lower offer may make more sense.

The important part is being able to explain why the offer is where it is.

Does Time on Market Change What You Should Offer?

It can.

A home that just came on the market and has strong buyer interest should generally be approached differently from a property that has been available for several months with little activity.

But days on market should never be considered by itself.

A home may sit because it is overpriced.

It may sit because the property has a narrow buyer pool.

It may sit because the seller has not been willing to negotiate.

Or it may simply be a unique property that requires the right buyer.

Look at what has happened during that time.

Has the price changed?

Have there been multiple listings competing with it?

Has the property gone under contract and returned to the market?

Has the seller made improvements?

Have comparable properties sold during the listing period?

Those details provide much more useful information than simply saying, “It has been on the market for 90 days.”

What If the Home Needs Renovation?

This is one of the situations where a lower offer can make sense—but the renovation costs need to be evaluated carefully.

Suppose a Northwest Hills home is listed at $1.4 million and appears to need:

It would be tempting to subtract every estimated project from the asking price.

That is not necessarily how the market works.

A buyer may be willing to accept some of those improvements as part of the property's current condition. Another buyer may value the opportunity to remodel the home exactly to their preferences.

You should estimate the actual cost of necessary work and then consider how comparable homes in renovated condition are selling.

The result may help establish a reasonable range for your offer.

Should You Offer More if the Home Has a Northwest Hills View?

Potentially.

Views can be difficult to value because they are not always captured by simple square-footage comparisons.

A home with a meaningful view can have a different appeal from a similar home without one. But not every “view” carries the same value.

Consider:

If the view is one of the home's defining characteristics, the comparable sales should ideally include other properties with similar views.

What About an Older Northwest Hills Home?

Older homes require a little more analysis.

A dated home may be priced lower because buyers are expected to update it. But there is an important difference between dated and poorly maintained.

An older home with:

may still be attractive even if the finishes are dated.

On the other hand, deferred maintenance can introduce costs that are not obvious from photographs.

Before deciding on an offer, understand the condition of major systems and the likely scope of work.

An inspection can help identify issues that may become part of later negotiations. NAR notes that inspection contingencies can give buyers time to understand a property's condition and potentially negotiate repairs.

Is the Highest Offer Always the Best Offer?

No.

This is particularly important if there are multiple buyers.

A seller may compare:

Offer A: $1,500,000 with financing and several contingencies

versus

Offer B: $1,480,000 cash with a shorter closing and fewer contingencies.

The seller might prefer Offer B.

NAR specifically notes that price is only one factor when evaluating offers. Financial terms, contingencies, closing timing, and earnest money can all affect the strength of an offer.

So when you make an offer, think about the entire package.

Which Offer Terms Can Make Your Offer Stronger?

Financing

A well-qualified buyer with solid financing can give a seller confidence that the transaction is likely to close.

Appraisal

If you are financing the purchase, understand what happens if the property appraises below your contract price. The appraisal can affect how much the lender is willing to finance.

Inspection

Inspection protections can be important, particularly with older Northwest Hills homes.

You should understand what inspection rights you have and how they affect the contract rather than automatically removing them to make an offer look stronger.

Closing Date

Sometimes the seller's preferred closing date can be almost as important as a small difference in price.

If the seller needs time to move, a flexible closing date could make your offer more attractive.

Earnest Money

Earnest money demonstrates that you are serious about completing the transaction. NAR notes that earnest money amounts vary and can commonly range from 1% to 10% of the purchase price, although there is no single required amount.

The appropriate amount depends on the transaction and the contract.

Seller Concessions

A buyer may negotiate for the seller to contribute toward certain costs or repairs.

This can be useful when the buyer wants to preserve cash for improvements after closing.

The important thing is to evaluate the total economic value of the offer, not just the headline purchase price. Seller concessions can be negotiated as part of the purchase agreement.

When Should You Offer Full Price or More?

There are situations where paying full price—or potentially more—can be the right decision.

For example:

But “stretching” should still have a limit.

Before increasing your offer, establish your maximum comfortable purchase price.

Do not decide that number emotionally in the middle of negotiations.

Should You Make a Low First Offer to Leave Room to Negotiate?

Sometimes, but there is a risk.

If you offer too low, the seller may simply reject the offer rather than counter.

You also risk losing the opportunity to negotiate if another buyer is willing to make a stronger offer.

A better strategy is to determine:

What is the home worth to me?

Then determine:

What is the maximum I am comfortable paying?

Those two numbers do not always have to be the same.

Your first offer can then be positioned somewhere between the property's supported value and your maximum, depending on the competition and seller circumstances.

What Should You Look at Before Making an Offer?

Before submitting an offer on a Northwest Hills home, review:

1. Recent comparable sales

Focus on genuinely similar properties rather than the entire neighborhood.

2. Current competition

Look at homes that a buyer could reasonably choose instead.

3. Price history

Has the property been reduced? How long has it been available?

4. Condition

Identify both cosmetic updates and major systems.

5. Lot and location

Consider views, privacy, street characteristics, slope, outdoor space, and surrounding properties.

6. Seller priorities

If known, understand whether the seller cares most about price, timing, certainty, or another term.

7. Your own priorities

Decide which terms you are willing to negotiate and which ones are important to you.

What Is a Good Offer on a $1 Million Northwest Hills Home?

There is no automatic answer such as $950,000 or $975,000.

If the property is genuinely worth around $1 million, a good offer might be close to $1 million.

If the home is worth $900,000 based on comparable sales and condition, $950,000 may still be too much.

If it is worth $1.05 million and competition is strong, an offer of $1 million may not be enough.

The price should come from the property—not from a predetermined discount.

This is one reason a detailed comparative market analysis can be so useful. It gives you a framework for deciding whether the asking price itself is reasonable.

What Is the Biggest Mistake Buyers Make When Making an Offer?

I think one of the biggest mistakes is focusing exclusively on price.

Buyers sometimes spend so much time trying to negotiate another $10,000 or $20,000 that they overlook the larger question:

Is this actually the right home at a price I can comfortably justify?

The second mistake is assuming every Northwest Hills seller expects a large negotiation.

The third is waiving protections without understanding the consequences.

An offer should be competitive, but it should also protect your interests.

NAR's consumer guidance emphasizes that contingencies are contractual conditions that need to be clearly understood and agreed upon, including financing, appraisal, inspection, title, and other potential conditions.

A Simple Formula for Evaluating Your Offer

Before submitting an offer, I would look at five things:

Market value + property condition + competition + seller circumstances + contract terms

That gives you a much better starting point than:

List price minus 5%.

Every Northwest Hills home is different.

The right offer is one that makes sense when you put the entire property and transaction together.

Frequently Asked Questions

Is 10% below asking a good offer on a Northwest Hills home?

Not automatically. A 10% discount may be reasonable if the home is significantly overpriced or needs substantial work, but it could be far too low for a well-priced property with strong buyer interest.

How do I know if a Northwest Hills home is overpriced?

Compare the home with recent sales and current competition while adjusting for condition, lot, views, remodeling, layout, and other meaningful differences. A home's asking price by itself does not establish its market value.

Should I offer asking price on a new Northwest Hills listing?

It depends on the property. If the home appears competitively priced and meets your needs, an asking-price offer may be appropriate. If the price is clearly above comparable sales, you may have a reason to negotiate.

Can I negotiate repairs after making an offer?

Your rights depend on the contract and applicable Texas law. Inspection provisions can provide an opportunity to evaluate the property and potentially negotiate repairs or other terms. Discuss the specific contract language with your real estate professional and, when appropriate, an attorney.

What makes an offer attractive besides price?

Financing strength, closing timeline, earnest money, contingencies, concessions, and other contract terms can all affect the seller's evaluation. The strongest offer is not necessarily the one with the highest price.

Should I waive the inspection to make my offer stronger?

That is a significant decision and should not be made simply because another buyer might do it. Understand what protection you are giving up and what risks you are accepting before changing inspection terms.

What if another buyer makes a higher offer?

Decide your maximum price before you get into a bidding situation. If the home is worth that amount to you and the terms still make sense, you can respond accordingly. If the competing price exceeds what you believe the property is worth or what you are comfortable paying, walking away can be the right decision.

About the Author

James Lucas is an Austin native and member of The Leverage Team, helping buyers and sellers navigate real estate decisions across Northwest Hills and surrounding Austin neighborhoods. His background includes studying Industrial Technologies at Texas State and serving as a Senior General Manager with Perry's Steakhouse in Austin, Birmingham, and Frisco. James approaches real estate with an emphasis on being excellent, earnest, and easy to work with. His goal is to help clients understand their options and make thoughtful decisions throughout the buying process.

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