It’s officially time for a change if your selling strategy still relies on receiving multiple offers above asking. We are past that crazy seller’s market. Here are the figures to back it up.
From Frenzy to “Normal”
According to the most recent Cotality data, roughly half of all homes on the market are currently selling for less than their asking price.
However, despite how it may seem, that isn’t always bad news. Here’s why. It was never going to be possible to sustain the crazy run-up of the previous few years. Data indicates that the housing market is currently undergoing a reset, which is exactly what was needed.
Zillow data is used in the graph below to illustrate how this trend has changed over time. It tells us the following:
- 2018–2019: Of the homes sold, 50–55% were below asking. That was the standard.
- 2021–2022: Due to record-low prices and strong buyer demand, only 25% of the items sold below asking.
- 2025: Homes are selling for half of their asking price. That is a lot more in line with the average for the housing market.
Why This Matters If You’re Selling Your House
Your pricing strategy is more crucial than ever during this return to normal.
You could overprice your home and still receive a ton of offers a few years ago. However, buyers now have less urgency, more options, and tighter budgets.
These days, your asking price can make or break a sale, especially at the beginning. Since the most serious buyers are looking at your listing during the first two weeks of your listing, this is the most crucial time frame. Your sale will come to a complete halt if you fail to set your price during that critical time. Customers will ignore it. Additionally, it will be challenging to sell your listing for the price you have set once it has become stale.
The Ideal Formula
In essence, sellers who hold onto antiquated standards face price reductions, fewer offers, and more time spent simply sitting on the market. However, homeowners who are aware of the situation are still succeeding today.
As long as the prices are set correctly from the beginning, the fact that 50% of homes sell for less than asking also indicates that the other half sell for at least that amount.
How do you position yourself for success, then? Take these three actions:
- Prep your house. Get your home ready. Prior to listing, take care of necessary repairs and touch-ups. Your chances of selling your house at or above your asking price are higher if it looks fantastic.
- Price strategically from day one. Don’t base your decision on the prices of nearby properties. You can rely on your agent to tell you what they sold for. And use that to determine the price of your home.
- Stay flexible. Be prepared to compromise. Additionally, keep in mind that price isn’t the only consideration. It could be on closing expenses, repairs, or another specifics. However, be aware that serious buyers today anticipate some compromise.
Planning for the current market, not the one we saw a few years ago, is necessary if you want your house to sell for the asking price or even more. And that’s precisely why you need a local agent that stands out.
Conclusion
Therefore, ask an agent what the current prices of buyers in your area are. Anything is possible if they have the know-how and a plan that gets your house noticed in those critical first two weeks.
FAQ: Selling Below Asking Price
Why are about 50% of homes selling below the asking price in 2025?
- The market has changed due to high mortgage rates, more inventory, and decreased buyer demand, giving buyers more negotiating leverage and encouraging sellers to lower prices more frequently than in prior years.
What are the most common mistakes sellers make that lead to selling below asking?
- Important factors include overpricing, disregarding market feedback, and failing to adapt to the current environment. Like the hot markets of 2021–2022, many sellers still anticipate receiving offers above their asking price.
How can sellers set the right price for their home?
- To avoid having to make adjustments later, sellers should price competitively from the beginning, examine local market data, and collaborate closely with an experienced real estate agent.
What are some strategies sellers can use to avoid selling for less than listing price?
- To draw in serious offers quickly, stage and prepare the house, think about buyer incentives, react quickly to market feedback, and set a reasonable price.
Does the shift benefit buyers more than sellers right now?
- Yes, as the market shifts in their favor due to affordability concerns and increased inventory, buyers have more negotiating power and can frequently ask for concessions like lower prices, assistance with closing costs, or rate buy-downs.