7 Clues You May Be Able to Negotiate a Better Home Price
If you’re shopping for a home in today’s market, you may have more negotiating power than you realize.
In July, the number of U.S. homebuyers fell to a new low of 966,752, according to Redfin, while nearly 1.46 million sellers were on the market. That means sellers outnumbered buyers by nearly half a million.
The result? Buyers who are still actively shopping may have more choices and less competition for available homes.
Nearly 80% of the largest U.S. metros—39 out of 49—are now considered buyer’s markets. But real estate is local, and national trends don’t mean every seller is ready to cut the price.
So how can you tell whether you have leverage on a particular property?
The best clues may be hiding right in the listing. Here are seven signs that a seller could be more willing to negotiate—and how you can use that information to your advantage.
1. The Home Has Been on the Market Longer Than Similar Properties
The longer a home sits on the market, the more motivated a seller may become.
A seller who expected an offer within a few weeks may become more flexible after watching comparable homes sell while their property remains available.
That doesn’t necessarily mean there’s something wrong with the home. It could have been overpriced, poorly marketed or listed at an inconvenient time.
Compare the property’s days on market with similar homes nearby. If comparable homes are selling in 20 days while the property you’re considering has been available for 60, the seller may be more open to negotiating the price or terms.
2. The Seller Recently Reduced the Price
A price reduction is one of the clearest signs that a seller’s expectations have changed.
One reduction could simply be a market adjustment. Multiple reductions, however, may suggest that the seller is becoming increasingly motivated to attract an offer.
Look at:
- How much the price was reduced
- How long the home was listed before the reduction
- Whether the seller has made multiple reductions
- How the current price compares with recent nearby sales
A price reduction doesn’t mean the seller will accept a lowball offer. But it can create an opportunity to make a reasonable offer backed by local market data.
3. The Listing Fell Out of Contract
When a pending sale falls through and the home returns to the market, the seller may be particularly motivated to find another buyer.
They’ve already gone through the process of accepting an offer, completing paperwork and preparing for a move. Having to start over can be frustrating and may affect their timeline.
Ask your agent whether they can determine why the previous contract ended. It could have involved financing, an inspection, an appraisal or another issue.
If the problem wasn’t related to the property—or it’s something you’re prepared to address—you may have an opportunity to negotiate from a stronger position.
4. The Home Needs Repairs or Updates
A home that needs work can create negotiating opportunities, particularly when there are plenty of move-in-ready alternatives nearby.
An outdated kitchen, aging HVAC system, worn flooring or other obvious repairs may discourage buyers who don’t want to take on a project. A smaller pool of interested buyers can give you more room to negotiate.
Depending on the property and your financing, you might ask the seller to:
- Reduce the purchase price
- Complete specific repairs
- Provide a credit at closing
- Contribute toward closing costs
Before making a request, get estimates for significant repairs. A cosmetic update may be manageable, while a major structural or mechanical problem could change whether the property makes financial sense.
5. Several Similar Homes Are for Sale Nearby
More choices can mean more leverage for buyers.
If several comparable homes are available in the same neighborhood and price range, sellers are competing for your offer. That can make them more willing to adjust their price or offer more favorable terms.
Compare each property’s:
- Asking price
- Condition and updates
- Days on market
- Recent price changes
- Property taxes and fees
- Included features
If the home you like has been sitting longer than similar properties, letting the seller know you’re considering other options may strengthen your negotiating position.
6. The Seller Has Already Moved
A vacant property can sometimes indicate that the seller is carrying costs on a home they no longer occupy.
Mortgage payments, property taxes, insurance, utilities and maintenance can add up quickly. If the seller has already purchased another home, they may also be dealing with two sets of housing expenses.
That doesn’t mean the seller is desperate. But their timeline and carrying costs can influence what makes an offer attractive.
A clean offer with solid financing and a convenient closing date could be appealing—even if the offer isn’t at the full asking price.
7. The Listing Has Received Little Buyer Interest
Limited activity can be another sign that you have room to negotiate.
Your agent may be able to find out how many showings the home has received, whether open houses have been busy and whether other buyers are actively considering the property.
Possible signs of limited interest include:
- Few showings
- Repeated open houses
- No offers after several weeks
- Frequent listing updates
- New incentives or concessions
- Listing language suggesting the seller is motivated
If there are no competing offers, you may have more time to inspect the property, evaluate the numbers and negotiate without the pressure of a bidding war.
What Can You Negotiate When Buying a Home?
The purchase price may be the first thing you think about, but it isn’t your only negotiating tool.
Depending on the property, seller and local market, you may be able to negotiate:
- Closing costs
- A mortgage rate buydown
- Your preferred closing date
- Additional inspection time
- Appliances or furnishings
- More flexibility with contingencies
- Credits for repairs or improvements
In some situations, these concessions can be more valuable to you than a small reduction in the purchase price.
Use Your Leverage Without Losing the Home
Having negotiating power doesn’t mean you should make an extremely low offer or demand unreasonable concessions.
A seller may be willing to negotiate, but they still want to believe the offer fairly reflects the value of their property. Push too aggressively, and you could lose the home—or make the seller less willing to work with you.
The goal is to use market data and the seller’s circumstances to build a strong, reasonable offer.
Before deciding what to negotiate, consider:
- How the asking price compares with recent sales
- How long the home has been on the market
- Whether the seller has already reduced the price
- The property’s condition
- Whether other buyers are interested
- Which terms matter most to the seller
- Which concessions would provide the most value to you
For example, a closing-cost credit or mortgage rate buydown could save you more money over time than a modest price reduction. Your real estate agent and lender can help you compare the numbers.
Is This a Good Time to Buy?
Redfin Senior Economist Asad Khan says the current market could create an opportunity for buyers and sellers to meet in the middle:
“Buyers are dropping out faster than sellers, giving the buyers who remain more options and more negotiating power.”
Khan also points to rising mortgage rates and uncertainty about future Federal Reserve policy as factors keeping some potential buyers on the sidelines. That combination could give motivated buyers an opportunity to negotiate with sellers before demand potentially increases later in the year.
Still, that doesn’t mean every home is a bargain or that every local market favors buyers.
A well-priced home in a desirable neighborhood can still attract multiple offers. And a seller who has little urgency may have no reason to make major concessions.
But if you’re financially prepared to buy, a slower market can give you something valuable: choices.
Instead of trying to perfectly time home prices or mortgage rates, focus on finding the right property, making sure the monthly payment fits your budget and negotiating terms that make the purchase work for you.
The best deal isn’t always the lowest price. Sometimes, it’s the home you want at terms that fit your financial goals.
