Over 60% of Buyers Bought Below Asking Price Last Year, With the Largest Discounts Since 2012

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For most of us, the frenzied bidding wars and constant price hikes of the post-pandemic housing boom are recent memories. That’s why it might come as a surprise to find that over 60% of homebuyers bought below asking price in 2025, according to brokerage and listings portal Redfin, when analyzing MLS data.

The discounts buyers received were not pocket change, either. Redfin reports that the average under-market offer accepted resulted in a 7.9% markdown, which was the largest since 2012. On a purchase price of $399,000, which was 2025’s median list price, that amounts to $31,592, more than enough for a down payment on a smaller investment or enough to fund some upgrades on the new property. 

The average discount across all homes—not just those selling below list price—was 3.8%.

Why and Where Discounts Are Back

Nabbing a discount isn’t as easy as throwing a dart at a map, despite the vast number of homes trading under asking price. There are some basic fundamentals at play—high interest rates, insurance costs, cost-of-living issues, and sellers outnumbering buyers.

Specific markets have exacerbated these issues, particularly where insurance costs have become a major concern, such as West Palm Beach, Florida, where discounts topped 10%, according to Redfin. Elsewhere, the Midwest, notably in Detroit and Pittsburgh, saw near or above double-digit discounts.

In total, Redfin says there are a record 47% more homesellers than there are buyers, making it the most negotiable market in years. For investors looking to capitalize on the malaise, it offers a great chance to get a deal. 

Said Redin senior economist, Asad Khan, in a press release:

“Homebuyers in 2026 shouldn’t write off homes that are slightly above their budget because there’s a good chance they’ll get some sort of concession from the seller, be it a price cut, money toward closing costs, or funds for repairs. This marks a reversal from the pandemic homebuying frenzy, when house hunters were advised to search for homes below their budget because fierce bidding wars were causing properties to sell far above the asking price.”

How Investors Should Interpret the Data

Condos are where the big discount action is. Just under 70% of condo buyers paid less than the asking price, with Florida seeing some of the biggest discounts in the country, in part due to a lot of construction and insurance/affordability issues.

However, just because buyers can negotiate doesn’t mean they can secure deals for pennies on the dollar as they did after the 2008 crash. The dynamics at play now are very different, tied to the affordability of regular homeowners rather than to overleveraged buyers with bad loans who are being foreclosed upon. Home prices are unreachable for many buyers, increasing 25% since 2020, according to U.S. Census data, rising faster than most people’s incomes.

Investors should review last year’s numbers alongside 2026 projections to gauge where the market is heading and make offers accordingly.

“The bottom line for 2026 is that it will be a transitional year,” Chris Reis, a broker with Compass in Seattle, told CNBC Make It. “There won’t be a crash or a boom, just the market finding its footing after years of extraordinary disruption. Buyers will have more selection and negotiating power than at any time since the pandemic.”

Look to See Where Prices Are Falling

Buyers will have the most negotiating power in cities where prices are expected to drop, and according to Zillow, most of the 22 cities where that is expected to happen will be in the Southeast or West.

“These places, among others, saw a huge frenzy during the pandemic, so part of what we are projecting is that demand continuing to come back down to earth,” Realtor.com’s Jake Krimmel, a senior economist, told CBS News. 

Even though Zillow expects prices to rise in the 78 other largest U.S. cities, as increases are expected to be small, there may still be room for negotiation. Fewer contracts on the table from homebuyers means more opportunities for investors, as happened in 2025.

Final Thoughts: 6 Tips for Structuring a Lowball Offer That Gets Accepted

1. Structure an offer that is compelling, not insulting. 

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Your goal with your offer is to start a conversation, not shut it down. Present an offer with a professional contract and a few contingencies, with a fast closing. Be a problem solver, not an antagonist—that means not pointing out everything that is wrong with the property.

2. Back up your offer with comparable sales data. 

Using comparable sales data is a standard way to justify an offer when the listing price is below market value or the asking price. Tying an offer to objective comps shows that some thought has gone into the price rather than aggressive haggling for the sake of scoring a deal, and it will be received more favorably.

3. Be flexible on the closing date. 

As a landlord, your move-in date is usually not as specific as a homebuyer’s, which might be tied to a job transfer or the start of the school year. Allowing the seller flexibility on closing makes a lower offer more palatable.

4. Have strong financing lined up. 

To have a chance of getting a lowball offer accepted, your financing needs to be rock solid—and ideally, all cash is the way to go. This eliminates any questions about whether you can actually close. 

If you cannot buy all in cash, showing that you have cash in the bank, a recent preapproval from a reputable lender, along with employment and income sources, and good credit scores, will help to put a seller’s mind at ease.

5. Focus on listings that have been on the market for a while. 

Wrongly priced listings tend to sit on the market and lose their shine. Sellers are usually hit with a crisis of confidence when no offers 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 offer. 

Most offers only address the buyer’s needs, not the seller’s. As an investor, you can speak to a seller’s pain. 

Other offers might be inspection contingent, in which the prospective buyer will point out every flaw to negotiate a lower price. That immediately sets up an adversarial situation. It’s like criticizing someone’s child. The seller won’t be enthusiastic about doing business with that buyer. 

If you can swoop in with an all-cash offer, talk up the house, and offer a swift closing, the seller will be more inclined to cut their losses and accept your price.