For most of us, the frenzied bidding wars and constant price increases of the post-pandemic housing boom are recent memories. That’s why it may come as a surprise to discover that more than 60% of homebuyers bought below asking price in 2025, according to the real estate and listing portal. Redfin, when analyzing MLS data.
The discounts buyers received were also not pocket money. Redfin reports that the average accepted below-market offer resulted in a 7.9% markdown, the largest since 2012. At a purchase price of $399,000, which was the average 2025 list price, that works out to $31,592, more than enough for a deposit on a smaller investment or enough to finance some upgrades to the new building.
The average discount for all homes – not just those sold below list price – was 3.8%.
Why and where discounts are back
Getting a discount isn’t as simple as throwing a dart at a card, despite the large number of homes trading below asking price. There are some simple fundamental factors at play: high interest rates, insurance costs, cost of living issues and more sellers than buyers.
Specific markets have exacerbated these problems, especially true insurance costs have become a big problem, such as in West Palm Beach, Florida, where discounts exceed 10%, according to Redfin. Elsewhere, the Midwest, especially in Detroit and Pittsburgh, saw almost or above double figures discounts.
In total, according to Redfin, there is a record 47% more home sellers than there are buyersmaking it the most tradable market in years. For investors looking to take advantage of the slump, this presents a great opportunity to make a deal.
Said Red senior economist Asad Khan in a press release:
“Homebuyers shouldn’t write off homes that are slightly above their budget in 2026 because there’s a good chance they’ll get some. kind of concession from the seller, whether it is a price reduction, money for closing costs, or money for repairs. This marks a reversal from the pandemic home-buying frenzy that house hunters were experiencing were advised to find homes below their budget as intense bidding wars resulted in properties selling well above asking price.”
How investors should interpret the data
Condos are where the big discount action happens. Just under 70% of condo buyers paid less than asking price, with Florida receiving some of the largest discounts in the country, partly due to many construction and insurance/affordability issues.
However, the fact that buyers can negotiate does not mean that they can close deals for pennies, as they did after the 2008 crash. The dynamics at play now are very different and are related to the affordability of ordinary homeowners rather than over-indebted buyers with bad loans who is shielded bee. House prices are out of reach for many buyers and have increased by 25% since 2020 US Census datawhich is rising faster than most people’s incomes.
Investors should look at last year’s numbers alongside 2026 projections to gauge where the market is going and make offers accordingly.
“The premise for 2026 is that it will be a transition year,” said Chris Reis, a broker at Compass in Seattle. CNBC Make it. “There will be neither a crash nor a boom, but a market finding its footing after years of extraordinary disruption. Buyers will have more selection and bargaining power than at any time since the pandemic.”
Watch to see where prices drop
Buyers will have the most bargaining power in cities where prices are high are expected drop, and according to Zillowmost 22 cities where that is expected to happen will be in the southeast or west.
“These places, among others, have seen a real frenzy during the pandemic, so part of what we’re projecting is that demand will continue to come back down to earth,” Realtor.com’s Jake Krimmel, a senior economist, told me. CBS News.
Even though Zillow expects prices to rise in the 78 other largest U.S. cities are expected are small, there may still be room for negotiation. Fewer contracts on home buyers’ tables means more opportunities for investors happened in 2025.
Final Thoughts: 6 Tips for Structuring a Lowball Offer That Gets Accepted
1. Structure an offer that is persuasive and not offensive.
Your goal with your offer is to start a conversation, not to close it. Present an offer with a professional contract and a few unforeseen circumstances, with a quick closure. Be a problem solver and not an antagonist; that means not pointing out everything that’s wrong with the property.
2. Support your offer with comparable sales data.
To use comparable sales data is a standard way to justify an offer when the offer price is lower than the market value or the asking pricee. Pairing an offer with objective comps shows that thought has been put into price rather than aggressive haggling to score a deal, and it will be received more favorable.
3. Be flexible on the closing date.
As a landlord, your move-in date is usually not as specifically as from a home buyer, that could be possible be bound until a job transfer or the start of the school year. Offering the seller flexibility at closing makes a lower offer more attractive.
4. Ensure strong financing.
To have a chance of having a low offer accepted, your financing must be rock solid– and ideally, all in cash is the right way. This eliminates any questions about whether you can actually close.
If you can’t buy it all in cash, showing that you have cash in the bank, a recent pre-approval from a reputable lender, along with employment and income sources, and good credit scoreswill reassure the seller.
5. Focus on listings that have been on the market for a while.
Mispriced listings tend to remain on the market and lose their luster. Sellers are usually hit by a crisis of confidence when offers don’t come in. They will be more open to being put out of their misery, relieved to receive an offer and ready to move on with their lives.
6. Use your investor position to tailor your offering.
Most offers focus only on the buyer’s needs, not the seller’s. As an investor, you can speak to a seller’s pain.
Other offers may include an inspection condition, where the potential buyer will point out any defect to negotiate a lower price. That immediately creates a hostile situation. It’s like criticizing someone’s child. The seller will not be eager to do business with that buyer.
If you can make an all-cash offer, discuss the house, and offer a quick closing, the seller will be more likely to cut their losses and accept your price.
#buyers #bought #price #year #largest #discounts