{"id":186812,"date":"2026-02-11T07:25:47","date_gmt":"2026-02-11T14:25:47","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=186812"},"modified":"2026-02-11T07:25:49","modified_gmt":"2026-02-11T14:25:49","slug":"over-60-of-buyers-bought-below-asking-price-last-year-with-the-largest-discounts-since-2012","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/over-60-of-buyers-bought-below-asking-price-last-year-with-the-largest-discounts-since-2012","title":{"rendered":"Over 60% of Buyers Bought Below Asking Price Last Year, With the Largest Discounts Since 2012"},"content":{"rendered":"\n

For most of us, the frenzied bidding wars and constant price hikes of the post-pandemic housing boom are recent memories. That\u2019s 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<\/span> Redfin, when analyzing MLS data<\/span><\/a>.<\/span><\/p>\n\n\n\n

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\u2019s median list price, that amounts to $31,592, more than enough for a <\/span>down payment<\/span><\/a> on a smaller investment or enough to fund some upgrades on the new property. <\/span><\/p>\n\n\n\n

The average discount across all homes\u2014not just those selling below list price\u2014was 3.8%.<\/span><\/p>\n\n\n\n

Why and Where Discounts Are Back<\/span><\/h2>\n\n\n\n

Nabbing a discount isn\u2019t as easy as throwing a dart at a map, despite the vast number of homes trading under asking price. There are some <\/span>basic<\/span> fundamentals at play\u2014high interest rates, insurance costs, cost-of-living issues, and sellers outnumbering buyers.<\/span><\/p>\n\n\n\n

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

In total, Redfin says there are a record<\/span> 47% more homesellers than there are buyers<\/span><\/a>, 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. <\/span><\/p>\n\n\n\n

Said <\/span>Redin<\/span> senior economist, Asad Khan, in a press release:<\/span><\/p>\n\n\n\n

“Homebuyers in 2026 shouldn\u2019t write off homes that are slightly above their budget because there\u2019s a good chance they\u2019ll get some <\/span>sort of<\/span> concession from the seller, be it a price cut, money toward closing costs, or funds for repairs.<\/span> This<\/span> marks a reversal from the pandemic homebuying frenzy, when house hunters <\/span>were advised<\/span> to search for homes below their budget because fierce bidding wars were causing properties to sell far above the asking price.\u201d<\/span><\/em><\/p>\n\n\n\n

How Investors Should Interpret the Data<\/span><\/h2>\n\n\n\n

Condos are where the big discount action is<\/span><\/a>. 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.<\/span><\/p>\n\n\n\n

However, just because buyers can negotiate doesn\u2019t 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 <\/span>being foreclosed<\/span> upon. Home prices are unreachable for many buyers, increasing 25% since 2020, according to<\/span> U.S. Census data<\/span><\/a>, rising faster than most people\u2019s incomes.<\/span><\/p>\n\n\n\n

Investors should review last year\u2019s numbers alongside 2026 projections to gauge where the market is heading and make offers accordingly.<\/span><\/p>\n\n\n\n

\u201cThe bottom line for 2026 is that it will be a transitional year,\u201d Chris Reis, a broker with Compass in Seattle, told<\/span> CNBC Make It<\/span><\/a>. \u201cThere won\u2019t 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.\u201d<\/span><\/p>\n\n\n\n

Look to See Where Prices Are Falling<\/span><\/h2>\n\n\n\n

Buyers will have the most negotiating power in cities where prices <\/span>are expected<\/span> to drop, and according to<\/span> Zillow<\/span><\/a>, most of the<\/span> 22 cities where that <\/span>is expected<\/span> to happen<\/span><\/a> will be in the Southeast or West.<\/span><\/p>\n\n\n\n

“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<\/span> CBS News<\/span><\/a>. <\/span><\/p>\n\n\n\n

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

Final Thoughts: 6 Tips for Structuring a Lowball Offer That Gets Accepted<\/span><\/h2>\n\n\n\n

1. Structure an offer that is compelling, not insulting. <\/span><\/h3>\n\n\n\n

Your goal with your offer is to start a conversation, not shut it down. Present an offer with a professional contract and a <\/span>few<\/span> contingencies, with a fast closing. Be a problem solver, not an antagonist\u2014that means not pointing out everything that is wrong with the property.<\/span><\/p>\n\n\n\n

2. Back up your offer with comparable sales data. <\/span><\/h3>\n\n\n\n

Using <\/span>comparable sales data<\/span><\/a> is a standard way to justify an offer when the listing price is below market value or the asking pric<\/span>e. <\/span>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 <\/span>it will be received<\/span> more favorably.<\/span><\/p>\n\n\n\n

3. Be flexible on the closing date. <\/span><\/h3>\n\n\n\n

As a landlord, your move-in date is usually <\/span>not as<\/span> specific <\/span>as<\/span> a homebuyer\u2019s, which might <\/span>be tied<\/span> to a job transfer or the start of the school year.<\/span> Allowing the seller flexibility on closing makes a lower offer more palatable.<\/span><\/p>\n\n\n\n

4. Have strong financing lined up. <\/span><\/h3>\n\n\n\n

To have a chance of getting a lowball offer accepted, your financing needs to be <\/span>rock solid<\/span>\u2014and ideally, <\/span>all cash<\/span> is the way to go.<\/span> This<\/span> eliminates any questions about whether you can actually close. <\/span><\/p>\n\n\n\n

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 <\/span>credit scores<\/span><\/a>, will help to put a seller\u2019s mind at ease.<\/span><\/p>\n\n\n\n

5. Focus on listings that have been on the market for a while. <\/span><\/h3>\n\n\n\n

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.<\/span><\/p>\n\n\n\n

6. Use your investor position to tailor your offer. <\/span><\/h3>\n\n\n\n

Most offers only address the buyer\u2019s needs, not the seller\u2019s. As an investor, you can speak to a seller\u2019s pain. <\/span><\/p>\n\n\n\n

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\u2019s like criticizing someone\u2019s child. The seller won\u2019t be enthusiastic about doing business with that buyer. <\/span><\/p>\n\n\n\n

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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

For most of us, the frenzied bidding wars and constant price hikes of the post-pandemic housing boom are recent memories. That\u2019s why it might come as a surprise to find […]<\/p>\n","protected":false},"author":613725,"featured_media":183582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-186812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=186812"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/183582"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=186812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=186812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=186812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}