Pre-Cut Offers vs Post-Cut Offers — Which Should You Take?

Buyer psychology behind each

Pre-cut offers: usually from three groups — 1) buyers who toured at least once and are seriously considering; 2) listings actively pushed by buyer agents; 3) buyers who partially agree with your list price and accept negotiating in a reasonable range.

Post-cut offers: more diverse — 1) buyers waiting for the cut; 2) first-time consideration after seeing MLS price-change alerts; 3) ‘pricecut hunters’ targeting reduced listings; 4) buyers who liked the home but couldn’t act during early high-competition window.

Pre-cut offer quality skews higher (buyers did homework); post-cut offer quality is mixed (heavy lowball share).

What the data shows

From my last 18 months of GTA seller data (30+ listings):

Pre-cut offers: average 93-97% of list, fewer conditions (often no home inspection), normal closing days.

First-wave post-cut offers: average 88-94% of the reduced list price (i.e., 82-88% of original list), more conditions (home inspection, status certificate, 21-day financing), often packaged with ‘lowball + we can negotiate’ attitude.

Bottom line: many ‘too low’ pre-cut offers net more than the first post-cut wave.

When to accept a pre-cut offer

5 green-light signals; 3+ means take it seriously:

1) Offer from buyer who toured ≥ 1 time (not blind)

2) Buyer agent has sold transactions in your sub-market (not green)

3) Offer ≥ 93% of list (reasonable for GTA current market)

4) Few reasonable conditions (financing OK, inspection OK, status OK, deposit $50K+)

5) Closing date acceptable to you (not immediate, not delayed excessively)

How to ‘soft-counter’ before accepting a cut

If the offer is close but off (list $1.5M, offer $1.38M, you want $1.43M), don’t flat-reject. Three plays:

1) Counter offer: come back at $1.45M, push them to top up. Most common, most effective.

2) Sign back with conditions removed: hold list price but eliminate certain buyer-requested conditions (e.g., waive home inspection if you have a pre-list inspection to share).

3) Time-limited acceptance: counter the price but demand reply within 48 hours. Urgency pushes movement.

Never just say ‘no thanks’ and hang up. Buyer might submit on another property and the chance is gone.

When holding for post-cut makes sense

Three scenarios:

1) Your list price is clearly above market (comps-supported price ≥ 7% below list); a cut is a necessary correction; wait for the real post-cut buyer pool

2) Not financially pressed; can absorb 60-90 days extra carrying cost

3) Market is improving (inventory drops, rate drops); waiting may grow the post-cut offer pool

Otherwise, a price cut is an irreversible signal. After the first cut, buyer expectations only drift downward, and negotiation room shrinks.

The ‘right way’ to cut (if you must)

If analysis says cut, do it right:

1) Cut large enough: ≥ 5-7% to re-trigger MLS algorithm push. <3% cuts are essentially invisible.

2) Time it right: Tuesday/Wednesday cuts best (buyer agents building weekend showing lists). Avoid Friday/Saturday (drowned by weekend traffic).

3) Pair with marketing relaunch: cut + open house + social post + buyer agent email blast. Make the cut feel like a ‘relaunch,’ not a ‘discount.’

4) Plan the next adjustment: 3-4 weeks after first cut with no offer, either cut again or withdraw and restrategize.

Q1. Should I counter an offer 5% off?

Almost always yes. Flat-reject is the worst move. Counter keeps the negotiation alive — 80% chance they’ll come back and you’ll close around the median.

Q2. A buyer says they’ll offer $X verbally but hasn’t submitted. Trust it?

Verbal isn’t binding, but use it as a trigger. Tell the buyer agent: ‘Submit and I’ll consider seriously.’ If they hesitate, the intent is weak.

Q3. How to handle a bully offer?

Bully = early irrevocable offer with a tight deadline. Steps: 1) immediately notify all past showings (‘we have an offer,’ give 72-hour window); 2) if bully price is reasonable (≥ 95% list), negotiate; 3) if absurd (< 90%), reject normally.

Q4. Should I accept home inspection conditions?

In current GTA market, fewer sellers refuse home inspection because DOM is long and buyer-favored. Unless you have a pre-list inspection to share, accepting a 5-7 day inspection condition is the norm.

Q5. After one cut, how long until the second cut?

At least 2-3 weeks to let the market digest. Two cuts within 10 days reads as panic seller, and buyers go more aggressive on lowballs.

Contact Arthur Zhao

GTA Real Estate Broker · Bilingual Service

Arthur Zhao

Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite · VP & Branch Manager, Bay Street Group Inc.