For many of us, the frenzied bidding wars and fixed value hikes of the post-pandemic housing growth are current reminiscences. That’s why it’d come as a shock to seek out that over 60% of homebuyers purchased under asking value in 2025, in response to brokerage and listings portal Redfin, when analyzing MLS information.
The reductions consumers obtained weren’t pocket change, both. Redfin stories that the typical under-market supply accepted resulted in a 7.9% markdown, which was the biggest since 2012. On a purchase order value of $399,000, which was 2025’s median listing value, that quantities to $31,592, greater than sufficient for a down cost on a smaller funding or sufficient to fund some upgrades on the brand new property.
The common low cost throughout all properties—not simply these promoting under listing value—was 3.8%.
Why and The place Reductions Are Again
Nabbing a reduction isn’t as simple as throwing a dart at a map, regardless of the huge variety of properties buying and selling beneath asking value. There are some primary fundamentals at play—excessive rates of interest, insurance coverage prices, cost-of-living points, and sellers outnumbering consumers.
Particular markets have exacerbated these points, significantly the place insurance coverage prices have turn into a significant concern, akin to West Palm Seaside, Florida, the place reductions topped 10%, in response to Redfin. Elsewhere, the Midwest, notably in Detroit and Pittsburgh, noticed close to or above double-digit reductions.
In complete, Redfin says there are a report 47% extra homesellers than there are consumers, making it probably the most negotiable market in years. For traders seeking to capitalize on the malaise, it presents a fantastic probability to get a deal.
Stated Redin senior economist, Asad Khan, in a press launch:
“Homebuyers in 2026 shouldn’t write off properties which can be barely above their funds as a result of there’s probability they’ll get some form of concession from the vendor, be it a value lower, cash towards closing prices, or funds for repairs. This marks a reversal from the pandemic homebuying frenzy, when home hunters have been suggested to seek for properties under their funds as a result of fierce bidding wars have been inflicting properties to promote far above the asking value.”
How Traders Ought to Interpret the Knowledge
Condos are the place the large low cost motion is. Just below 70% of condominium consumers paid lower than the asking value, with Florida seeing a number of the greatest reductions within the nation, partly as a result of a number of development and insurance coverage/affordability points.
Nevertheless, simply because consumers can negotiate doesn’t imply they will safe offers for pennies on the greenback as they did after the 2008 crash. The dynamics at play now are very completely different, tied to the affordability of standard owners relatively than to overleveraged consumers with unhealthy loans who’re being foreclosed upon. Dwelling costs are unreachable for a lot of consumers, growing 25% since 2020, in response to U.S. Census information, rising quicker than most individuals’s incomes.
Traders ought to assessment final yr’s numbers alongside 2026 projections to gauge the place the market is heading and make presents accordingly.
“The underside line for 2026 is that it will likely be a transitional yr,” Chris Reis, a dealer with Compass in Seattle, instructed CNBC Make It. “There gained’t be a crash or a growth, simply the market discovering its footing after years of extraordinary disruption. Patrons could have extra choice and negotiating energy than at any time because the pandemic.”
Look to See The place Costs Are Falling
Patrons could have probably the most negotiating energy in cities the place costs are anticipated to drop, and in response to Zillow, many of the 22 cities the place that is predicted to occur might be within the Southeast or West.
“These locations, amongst others, noticed an enormous frenzy in the course of the pandemic, so a part of what we’re projecting is that demand persevering with to come back again all the way down to earth,” Realtor.com’s Jake Krimmel, a senior economist, instructed CBS Information.
Regardless that Zillow expects costs to rise within the 78 different largest U.S. cities, as will increase are anticipated to be small, there should still be room for negotiation. Fewer contracts on the desk from homebuyers means extra alternatives for traders, as occurred in 2025.
Last Ideas: 6 Ideas for Structuring a Lowball Provide That Will get Accepted
1. Construction a proposal that’s compelling, not insulting.
Your aim together with your supply is to begin a dialog, not shut it down. Current a proposal with an expert contract and a few contingencies, with a quick closing. Be an issue solver, not an antagonist—meaning not mentioning all the pieces that’s fallacious with the property.
2. Again up your supply with comparable gross sales information.
Utilizing comparable gross sales information is a normal strategy to justify a proposal when the itemizing value is under market worth or the asking price. Tying a proposal to goal comps exhibits that some thought has gone into the worth relatively than aggressive haggling for the sake of scoring a deal, and it will likely be obtained extra favorably.
3. Be versatile on the time limit.
As a landlord, your move-in date is normally not as particular as a homebuyer’s, which could be tied to a job switch or the beginning of the varsity yr. Permitting the vendor flexibility on closing makes a decrease supply extra palatable.
4. Have robust financing lined up.
To have an opportunity of getting a lowball supply accepted, your financing must be rock strong—and ideally, all money is the best way to go. This eliminates any questions on whether or not you may really shut.
For those who can not purchase all in money, exhibiting that you’ve got money within the financial institution, a current preapproval from a good lender, together with employment and earnings sources, and good credit score scores, will assist to place a vendor’s thoughts relaxed.
5. Deal with listings which have been available on the market for some time.
Wrongly priced listings have a tendency to take a seat available on the market and lose their shine. Sellers are normally hit with a disaster of confidence when no presents are available in. They are going to be extra open to being put out of their distress, relieved to obtain a proposal, and able to transfer on with their lives.
6. Use your investor place to tailor your supply.
Most presents solely handle the client’s wants, not the vendor’s. As an investor, you may converse to a vendor’s ache.
Different presents could be inspection contingent, by which the possible purchaser will level out each flaw to barter a cheaper price. That instantly units up an adversarial scenario. It’s like criticizing somebody’s youngster. The vendor gained’t be passionate about doing enterprise with that purchaser.
For those who can swoop in with an all-cash supply, speak up the home, and supply a swift closing, the vendor might be extra inclined to chop their losses and settle for your value.
