$700K House. $650K Offer. Crazy—or Worth a Shot?

In Denver's current market, the asking price is a starting point, not necessarily the number you'll pay.

But how much room you have to negotiate depends on far more than the price sitting on the listing.

The real question is: what is this particular house telling you about your negotiating leverage?

How Much Can You Negotiate Off a Denver Home Right Now?

There isn't a standard percentage.

And that's actually good news.

Because instead of asking, “How much below asking can I offer?”, ask:

“What leverage do I have on this particular house?”

Start with four things:

How long has it been listed?
A seller on Day 3 may think very differently from a seller on Day 63.

Has the price already been reduced?
A reduction can tell you the original pricing strategy didn't produce the result the seller wanted.

Has the property gone under contract and come back?
That can change the conversation, depending on why the previous transaction fell apart.

What's happening with comparable homes?
The list price is what the seller is asking. Recent comparable sales can help your real estate agent evaluate how the property is positioned in the market.

Those details tell you much more than the price tag alone.

Would $650K on a $700K House Be a Lowball Offer?

It could be. Or it could be the beginning of a negotiation.

That's a $50,000 difference, or roughly 7.1% below the asking price.

But percentage alone doesn't determine whether an offer makes sense.

Imagine two $700,000 Denver listings.

HOUSE A
Listed 2 days ago
No price reductions
Strong showing activity
Other buyers interested

HOUSE B
Listed 75 days ago
Price reduced twice
No competing offer
Seller wants to move

Same asking price.

Completely different negotiation.

That's why I wouldn't choose an offer price from a generic rule like “always offer 5% below asking.”

The property tells a story. Read it first.

Is the Lowest Purchase Price Always the Best Deal?

Here's where the mortgage side gets interesting.

Not necessarily.

Suppose a seller is willing to give something up to get the transaction done.

You may be able to negotiate the purchase price.

But depending on the transaction and loan program, you may also want to evaluate whether a seller concession could help with allowable closing costs, prepaid expenses or potentially a mortgage rate buydown.

Those choices don't necessarily produce the same financial result.

I've explained how seller concessions can help pay closing costs in Denver, but the important part here is this:

Don't negotiate only the price until you know what you're trying to accomplish.

What If the Seller Offers You $20K?

Now we're having a different conversation.

Imagine there's potentially $20,000 of negotiating room in the transaction.

Would you rather have:

$20,000 off the purchase price?

Or could some of that money create a larger benefit somewhere else in the financing?

That answer depends on your loan amount, rate options, closing costs, cash available and how long you expect to keep the financing.

This is exactly why I like running the mortgage numbers before the offer is finalized.

A price reduction sounds great.

But what you really want to know is:

What does each option actually do for me?

If you're considering using seller funds toward the interest rate, read Should You Buy Down Your Mortgage Rate or Keep the Cash?

Should You Make an Aggressive Offer?

This is where your real estate agent and mortgage professional should be working together.

Your agent can help you evaluate the property, comparable sales, listing history, competition and the seller's situation.

I can help you evaluate what different negotiated terms do to the financing.

That's an important distinction.

Because an aggressive offer isn't simply about seeing how low the seller will go.

It's about putting together terms that make sense for you while still giving the seller a reason to say yes, or at least counter.

What Should You Know Before You Write the Offer?

Know your numbers before you're emotionally attached to the outcome.

I want you to understand:

Your estimated payment.

Your cash needed to close.

What happens if the price changes.

What happens if you negotiate seller concessions instead.

What happens if those concessions are used toward eligible costs or a rate strategy.

Then you and your agent can discuss the offer with actual numbers behind the decision.

And if you're already pre-approved and getting ready to shop, here's what happens next after mortgage pre-approval in Denver.

The Bottom Line

$650,000 on a $700,000 Denver listing isn't automatically crazy.

It also isn't automatically a good offer.

The opportunity is in understanding the house, the seller, your leverage and what you're actually trying to accomplish financially.

So before you automatically offer asking price, or randomly knock $50,000 off it, run the numbers and build a strategy.

Found a Denver house and wondering how different offer structures could affect your mortgage?

Schedule a Mortgage Strategy Call

Information is for educational purposes only and is not a commitment to lend. Purchase-price strategy and property valuation should be discussed with your real estate professional. Seller concessions are subject to loan-program limits and transaction-specific requirements. All loans are subject to credit approval, program guidelines, property eligibility, and underwriting requirements.