Calling all homebuyers, it's Time to Negotiate

If you've been waiting for more negotiating power, the wait may be over. According to new data from Redfin, buyers who purchased below list price in 2025 scored an average discount of 7.9%, the largest since 2012. In dollar terms, that's roughly $31,500 off the typical home.

The Big Picture

Nearly two-thirds of all homebuyers last year paid less than the asking price, the highest share since 2019. Meanwhile, only about 23% paid above list, the lowest in six years. The market has clearly shifted in favor of buyers.

Why Sellers Are Cutting Prices

There are now 47% more sellers than buyers, a record gap that's giving buyers real leverage. Many sellers haven't adjusted to the slowdown. They watched homes sell for tens of thousands over asking during the pandemic frenzy and are pricing based on that. But today's market isn't nearly as hot, and overpriced listings are sitting or getting delisted.

Bigger Discounts Are Becoming More Common

One in four buyers who got a discount scored 10% or more off the list price, the highest share since 2012. Another 28% got between 5% and 10% off. Homes have become harder to price accurately, and that's creating more room to negotiate.

Condos Are Seeing the Steepest Discounts

Condo buyers got an average discount of 8.1%, slightly higher than single-family homes at 7.9%. Rising HOA fees, insurance costs, and special assessments have cooled demand for condos, giving buyers in that segment even more leverage.

Side note: if you are offering on a condo, you need a 7-10 day contingency for the HOA approval. If the listing says its a Townhome, check again. This can cost you time and money.  If its legally a condo, the HOA must be approved.

Where Buyers Are Winning

West Palm Beach led the nation with an average discount of 10.9% for buyers who paid below list. Other markets with big discounts include Detroit (10.3%), Fort Lauderdale (10.3%), Pittsburgh (9.9%), and Miami (9.8%). Florida's combination of high inventory, rising insurance costs, and HOA challenges has made it especially favorable for buyers.

On the flip side, Seattle had the smallest discounts at 5.7%, followed by Washington, D.C., Minneapolis, and Las Vegas.

Only Four Markets Where Buyers Still Pay Over Asking

San Francisco, Newark, San Jose, and Oakland are the only metros where the typical buyer paid above list price. The Bay Area remains competitive due to AI-driven demand and return-to-office trends, though even those premiums are shrinking.

The Bottom Line for Buyers

If a home is slightly above your budget, don't write it off. There's a good chance you can negotiate a price reduction, closing cost credits, or repair funds. This is a reversal from the pandemic years when buyers were told to search below budget and expect bidding wars. Today, the leverage has shifted.

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