Homes are selling below asking in 38 of the 50 biggest U.S. cities

“Buyers notice right away when mortgage rates go up because it’s more expensive for them to buy a home,” she says. “It takes a while for sellers to realize, ‘Hey, maybe I need to price lower.'”

But for many homeowners, asking for less isn’t easy. Some who bought near the housing market’s peak in 2022, for instance, may have little room to cut their asking price and still turn a profit after commissions and other selling costs, Fairweather says.

Many of the Florida and Texas markets with the biggest discounts also experienced a surge in homebuilding during and after the pandemic, giving buyers more options, Fairweather says. In those metros, rising insurance premiums and property taxes have also increased the cost of owning a home, shrinking the pool of buyers while putting more pressure on sellers to negotiate.

For buyers, however, how much room there is to negotiate still depends on the market and the individual home.

“In neighborhoods where inventory remains limited and demand is strong, homes that are priced right are still selling quickly and often with multiple offers,” said Bill Kowalczuk, a real estate broker at Coldwell Banker Warburg in New York City. “What we’re really seeing is a more balanced market where pricing actually matters again.”

She recommends checking what homes in your area typically sell for compared with their asking price, known as the sale-to-list ratio. You can find local ratios on real estate listing websites or ask your real estate agent. If homes are routinely selling below asking, you might be able to make an offer that’s closer to the typical discount while still remaining competitive.

Buyers should also pay attention to how long a home has been on the market. A newly listed property may still attract multiple offers, even in a slower market, while a home that’s been sitting for several weeks may offer more room to negotiate. The same goes for homes that have already seen one or more price cuts.

And negotiation isn’t limited to the sale price. Buyers may also have success asking sellers to cover closing costs or provide repair credits. Cash offers can also strengthen a buyer’s position because they’re generally viewed as more likely to close, Fairweather says.

But even with more negotiating room, buyers shouldn’t assume every seller is eager to make a deal.

“The biggest change I’m seeing is that buyers have more leverage than they did a few years ago, but they don’t have all the leverage,” says Jennifer Thayer, founder of the Jennifer Thayer Group in St. Petersburg, Florida. This is especially true in the luxury market, she says. “Really good properties that are priced correctly are still selling, and some are selling very quickly.”