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In Sioux Falls in 2026, most buyers should plan to offer somewhere between roughly 96% and 100% of a home's list price — the current market average is 96.8% of list. The right number isn't a fixed percentage; it depends on how long the home has been for sale, what comparable homes have actually sold for, and how much competition you're up against.
Quick Answer: There's no magic percentage. Right now, Sioux Falls homes are selling for about 96.8% of their list price on average and taking roughly 83 days to go under contract. That means a smart, competitive offer is usually within a few percent of asking — not a lowball. On a fresh, well-priced listing you may need to come in at or near full price, while a home that has lingered or seen price cuts often leaves room to negotiate.
Start With the Market, Not a Rule of Thumb
You've probably heard advice like “always offer 10% under asking.” In today's Sioux Falls market, that kind of blanket rule is a good way to lose the house you want — or to overpay for one you don't. The numbers tell a clearer story.
According to the Realtor Association of the Sioux Empire's most recent monthly report (October 2026), homes in the Sioux Falls area sold at an average of 96.8% of their list price, with a median sale price of $310,000 and an average of 83 days on the market before going under contract. Inventory sat at roughly 4.0 months of supply, which is close to a balanced market — not the frantic, sight-unseen bidding wars of a few years ago, but not a deep buyer's market either.
What that means for your offer: sellers are generally getting close to their asking price, but they're not getting every penny, and they're not getting it overnight. You have more room to think, inspect, and negotiate than buyers did in 2021 — as long as your offer is grounded in what the home is actually worth.
What “96.8% of List Price” Means for Your Offer
The sale-to-list ratio is simply the final sale price divided by the last list price, averaged across all the homes that sold. At 96.8%, the typical Sioux Falls seller accepted an offer about 3.2% below their asking price. On a $325,000 listing, that's roughly $10,000 off — a meaningful number, but a long way from a lowball.
A couple of important caveats. First, this is an average: some homes sell over asking, and some sell well under, depending on condition, pricing, and time on the market. Second, many of these sellers lowered their price at least once before accepting an offer, so the 96.8% is measured against the final list price, not the original one. The practical takeaway is that a reasonable opening offer in Sioux Falls today usually lands within a few percentage points of asking — and the exact figure is a judgment call based on the five factors below.
5 Factors That Decide How Much to Offer
When we help a buyer set an offer price, we weigh these five things together rather than reaching for a one-size-fits-all percentage:
1. How long the home has been on the market. A listing that's three days old with lots of showings is a very different negotiation than one that's been sitting for 90 days. With the area average around 83 days, a home that's well past that — especially one that's already cut its price — signals a seller who may be ready to deal.
2. Recent comparable sales. This is the heart of it. We pull a comparative market analysis (CMA) of similar homes — same area, size, age, and condition — that have actually closed in the last few months. Those real sold prices, not the list price, tell you what a home is truly worth and where your offer should land.
3. The home's condition and updates. A move-in-ready, updated home justifies an offer near asking. One that needs a roof, mechanicals, or cosmetic work gives you grounds to offer less — or to ask the seller to credit repairs.
4. How much competition you're facing. Multiple offers change everything. A desirable, well-priced home can still draw several buyers in a day, and in that situation your strongest offer may be at or above list. A home with no other interest gives you leverage.
5. Your financing and timeline. A seller weighs certainty, not just price. A fully underwritten pre-approval, a flexible closing date, and solid earnest money can make a slightly lower offer more attractive than a higher one that looks shaky.
When to Offer Full Price — or More — in Sioux Falls
Coming in at or above asking makes sense more often than nervous buyers expect. Consider a strong offer when the listing is brand new and priced in line with recent sales; the home is clearly underpriced compared to the comps; there are already multiple offers on the table; or the property is a rare fit for your needs that won't come around again soon. In competitive situations, some buyers use an escalation clause — an agreement to automatically beat competing offers up to a set ceiling — so they don't lose a home over a small gap. We'll tell you honestly when a home is worth stretching for and when it isn't.
One caution with high offers: the home still has to appraise. With 30-year mortgage rates around 7.11% (Freddie Mac, week of November 12, 2026), most buyers are financing, and the lender's appraisal has to support the price. More on that below.
When You Have Room to Offer Below Asking
Plenty of Sioux Falls homes today give buyers real negotiating room. You generally have the upper hand when the home has been on the market well beyond the 83-day average, when it has already had one or more price reductions, when it needs obvious repairs, or when the seller is carrying two mortgages and motivated to move. In those cases, an offer in the low-to-mid 90s as a percentage of list — backed by comps — is reasonable rather than insulting.
The key is to anchor every below-asking offer to evidence. “We're offering $15,000 under because the three closest sold comps support this price and the home needs a new roof” is a negotiation. “We're offering $15,000 under because we feel like it” usually just gets a quick rejection.
Price Isn't Everything: The Terms That Win
In a balanced market, the terms of your offer can matter as much as the number. Levers worth considering include:
Earnest money. This good-faith deposit — often around 1% of the purchase price in our area — is held in escrow by the title company or listing brokerage and credited to you at closing. A stronger deposit signals a serious buyer.
Contingencies. Inspection, financing, and appraisal contingencies protect you, but each one is also a condition the seller has to accept. Keeping them reasonable and tightly timed makes your offer cleaner without leaving you exposed.
Closing timeline. Matching the seller's preferred date — or offering a flexible one — can be worth real money to them.
Possession and rent-back. A seller who needs extra days to move may favor the offer that lets them stay a short while after closing.
These terms are how a well-structured offer can win even when it isn't the highest dollar amount on the table.
How the Jeff Merrill Team Helps You Land the Right Number
Setting an offer price is where having a local agent earns its keep. We build a fresh CMA for every home you're serious about, read the signals the listing itself is giving off, and structure an offer — price and terms — designed to get you the home without overpaying. Then we negotiate it on your behalf.
Ready to start? Browse every active Sioux Falls listing and set up instant alerts on our home search at siouxfallsgreathomes.com, then reach out to the Jeff Merrill Team at (605) 413-7903 when you find one worth an offer. We'll help you decide exactly how much to put on the table.
Frequently Asked Questions
Should you ever offer over asking price in Sioux Falls?
Yes. When a home is brand new to the market, clearly underpriced, or drawing multiple offers, going at or above list price is often the only way to win it. The current area average of 96.8% of list is a blend — the most desirable homes still sell at or over asking. The question is whether the comps and your budget support the higher number.
How much earnest money do you need in Sioux Falls?
There's no legal minimum, but earnest money in our area is commonly around 1% of the purchase price. It's a good-faith deposit held in escrow and applied to your down payment and closing costs at closing — not an extra cost on top of the price. A stronger deposit can make your offer more competitive.
Can you offer 10% or 20% below asking?
You can offer anything, but a 10–20% below-asking offer rarely succeeds in today's Sioux Falls market unless the home is badly overpriced or distressed. With homes averaging 96.8% of list, most accepted offers are within a few percent of asking. A deep discount offer needs strong comparable sales or significant repair issues to be taken seriously.
What happens if the appraisal comes in below your offer?
If you're financing, your lender will only lend based on the appraised value. If the appraisal comes in low, you can renegotiate the price with the seller, cover the difference in cash (an “appraisal gap”), or — if you kept an appraisal contingency — walk away without losing your earnest money. We factor appraisal risk into how aggressively it makes sense to offer.
Should you waive the home inspection to win the house?
We generally advise against fully waiving your inspection, even in a competitive situation — it's your main protection against costly hidden problems. There are less risky ways to strengthen an offer, such as a shorter inspection window, a larger earnest deposit, or flexible possession. We'll walk you through the trade-offs for the specific home.
Sources
Realtor Association of the Sioux Empire monthly housing report (October 2026), via SiouxFalls.Business; Freddie Mac Primary Mortgage Market Survey (week of November 12, 2026); South Dakota Codified Law 43-4-44 (seller's property condition disclosure). Market data is area-wide and for general information; your home's right offer price depends on its specific comparable sales and condition.