So You’ve Heard It’s Now a Buyer’s Market

What you really need to know before making a lower offer on a home.

You have found a house you like. You have also heard that buyers have more negotiating power, so you are thinking about offering well below the asking price.

Maybe you should. But how did you arrive at that number?

Freddie Mac reported a national average 30-year fixed mortgage rate of 7.32% on October 22, 2026, compared with 6.19% a year earlier. Los Angeles County sales of existing detached single-family homes were down 10.9% in September compared with September 2025, according to C.A.R.. The median sale price, however, was up 1.2%. Significantly fewer sales, but a slightly higher median price.

Higher borrowing costs put pressure on buyers’ budgets and can give those still shopping more room to negotiate. With the holidays approaching, a seller who needs to move on may also be more receptive to an offer.

The question is how to recognize that opening. The following hypothetical examples and negotiation options illustrate how I would approach it.

The House That Has Been Sitting

Imagine a house listed at $3.3 million that has been on the market for three months. Recent comparable sales appear to support the price, but this house is not moving while others are selling.

If a home has been sitting for 45–60 days without a single offer, I am comfortable exploring an offer below asking and possibly even below current comps. Comparable sales are useful references, but they do not establish a minimum we have to offer. The lack of offers is information too.

I would ask the listing agent why they think it has not sold. Is it the lot, the block, the light inside, or the condition? What feedback have buyers given? Has it been in escrow, and if so, why did it fall out?

I would also research what the seller paid and when, review available recorded financing information, and ask about their circumstances. There are several things I want to understand:

• Have they already moved? An empty house still has carrying costs, and staging may involve additional furniture rental after the initial contract period. Those expenses can make an offer more attractive as time passes.
• Do they have room to negotiate? Someone who bought years ago for substantially less and has not invested heavily in improvements may have more flexibility than someone trying to recover a recent purchase and/or renovation.
• How credible is the rental alternative? A low fixed-rate mortgage may make keeping the property appealing. Expected rent, ongoing expenses, and the practicalities of managing it still matter.
• Could their financing change? An approaching adjustable-rate mortgage reset could affect motivation if it would materially increase the payment. The size of any adjustment depends on the loan’s terms; whether the seller could refinance is another consideration. Some of this we may be able to establish; some we may not.

I am also seeing sellers struggle significantly with the idea of accepting less than they paid or losing money due to the cost of the current sale. Understanding that helps us anticipate their response, even when it does not change what my buyer can offer.

Some sellers hesitate to reduce publicly because they worry buyers will then negotiate them down again during inspections. Some also worry that a visible price-reduction history could work against them if they try selling again after renting the home out for a year or two. A written offer gives them something specific to consider without first changing the advertised price.

An offer is a starting point. The seller can reject it or counter. If their response does not work for your budget, we can move on. We do not have to wait for a price reduction before trying.

If you are watching a home that has been sitting, let’s discuss whether it is time to make an offer.

The Well-Priced House You Could Lose

Now imagine another house listed at $2.4 million. It is in good condition, compares favorably with recent sales around $2.7 million, and has just come on the market. Open houses are packed, and buyers are returning multiple times.

You want to offer $2.3 million because you have heard it is a buyer’s market.

You can make that offer, but the seller may have little reason to accept it if other buyers see value at or above asking. This property is giving us very different information from the house that has been sitting without offers.

The seller may be using an “event pricing” strategy: setting an asking price low enough to attract attention and generate competing offers. I still see this in Los Angeles. It is my job to help clients recognize when that may be the strategy and discuss the likely selling range before we write.

If $2.3 million is your limit, we can decide whether an offer is worth trying. If you can comfortably afford more and this is the home you want, I would not want you to lose it simply because we assumed every seller would accept a discount.

Paying over asking does not automatically mean overpaying. The asking price may have been designed to start the bidding.

Is Your Priority a Lower Price or a Lower Monthly Payment?

Before deciding how much less to offer, I want to understand what matters most to you financially.

If you are paying cash, the purchase price may be your main focus. If you are financing, the monthly payment may be the bigger concern. That can change how we approach the negotiation.

A seller-funded mortgage buydown may accomplish more for you than a price reduction alone. We could negotiate a purchase price that leaves the seller with more proceeds than a larger reduction would, paired with a contribution toward reducing your mortgage payments.

With a temporary buydown, that contribution subsidizes payments for an initial period, such as two or three years. It can give the buyer meaningful relief from higher payments while making the offer more acceptable to the seller.

Your lender should compare the options, confirm what your loan permits, and show you the payment after the subsidy ends. You need to be comfortable with that eventual payment too.

If the monthly payment is driving your offer, let’s discuss whether a buydown could help us negotiate terms that work for you.

The Lower-Priced House With Expensive Problems

Now consider a house listed at $3.5 million, while similar homes in better condition have sold around $4 million. It looks like a chance to buy below the neighborhood’s recent sales.

But suppose preliminary evaluations suggest $500,000 in necessary work. You would already be at $4 million before unexpected expenses, carrying costs during construction, or the inconvenience of managing the project. Remember the old saying about construction projects: expect it to take twice as long and cost twice as much.

We need to understand the scope of work, obtain appropriate professional estimates, and consider whether the finished home would justify the total investment. That research may support a substantially lower offer.

You may have the resources and interest to take it on. You may also discover that a more expensive home requiring less work is the better choice for you. A discount is only useful if the purchase works after accounting for what comes next.

Make the Offer With a Plan

Before we write, I want to understand the property’s likely value, what the seller’s circumstances suggest about their flexibility, and what price and terms work for you.

You do not need to apologize for making a lower offer. Present it tactfully, with supporting information, and know how far you are willing to go if the seller counters. Sometimes an offer opens a negotiation that an asking price never would.

If you are looking to buy a home, are not currently under contract with a buyer’s agent, and are wondering what to offer, schedule a consultation. We can review it and decide how to approach the seller.