Gone are the days when sellers could list a home and sit back as buyers started bidding wars. Today’s buyers have more choices, tighter budgets, and less patience for overpriced homes, needed repairs, or unfavorable terms. For HomeLight’s latest Top Agent Insights report, we asked top real estate agents nationwide what housing market changes they think sellers are least prepared for over the next six months. Here are the five themes that surfaced again and again.
Sellers are facing more competition as the number of homes for sale continues to grow. In August, 1.62 million existing homes were for sale nationwide, 5.9% more than a year earlier, according to the National Association of Realtors (NAR). That brought supply to 4.9 months, the highest level in more than a decade. For sellers, that means buyers may feel less pressure to act fast. A price or condition issue that buyers might have overlooked when inventory was tight can now be a reason to choose another home. “Sellers who expect multiple offers on day one without precise pricing, aggressive marketing, and turnkey presentation are going to be caught off guard,” says Lisa Archer, a top agent in Charlotte, North Carolina. She called this the end of “passive selling.” With more homes competing for buyers, look closely at the properties you’ll be up against before you list. Pricing realistically, fixing obvious problems, and responding quickly if buyer interest is weak can help keep a listing from falling behind. About 42% of homes on the market are taking a price cut, according to Century 21 CEO Mike Miedler. For sellers, that makes getting the price right from the start more important. Starting high and lowering the price later may not work as well as it once did. “A lot of sellers still have 2021 in their heads. They think they can list a little high, wait for the bidding war, and negotiate down,” says Brian Burke, a Denver, Colorado, agent with 23 years of experience. Kent Rodahaver, a top St. Petersburg, Florida, agent, says today’s buyers are weighing far more than just the asking price. “They’re comparing price, condition, insurance costs, property taxes, interest rates, seller concessions, and competing inventory before deciding whether a home deserves their attention.” Agents recommend pricing against current sales and competing listings from the outset. If buyer interest is weak in the first few weeks, they also advise making a meaningful adjustment early rather than letting the listing sit through multiple price cuts. Sellers shouldn’t assume they’ll have an offer within days. Recent national estimates put the typical time on market at roughly 50 to 60 days. A few extra weeks can mean another mortgage payment, plus taxes, insurance, utilities, and upkeep. It can also make the timing harder for sellers who need to sell before buying their next home. “Sellers who spend the first 60 or 90 days ‘testing the market’ may find that their biggest competition isn’t another seller — it’s time,” says Angie Williams, a top-performing agent in Lufkin, Texas. Agents recommend planning for those extra costs and giving yourself some flexibility around your next move. But that doesn’t mean waiting months to make a change if buyers aren’t responding. Of the agents surveyed, 83% said they would recommend a significant change within one to four weeks when a home is getting showings but no offers. An accepted offer may not be the final number. After the inspection, buyers may ask for repairs, a credit, help with closing costs, or a rate buydown. Of the agents surveyed, 36% said major inspection issues are the most common reason a deal falls through after going under contract. Another 39% said they typically recommend giving the buyer a repair credit when inspection problems come up. “Many sellers still think the deal is done when they sign the offer, and then the inspection comes back, and the buyer is back at the table asking for credits, repairs, or a rate buydown. That used to be the exception. It’s becoming the norm, and it’s where a lot of sellers lose money they thought they already had,” says Chase Whitney, a top Cypress, California, agent with 25 years of experience. Before accepting an offer, talk through what you may be willing to cover if the inspection reveals problems. That way, you’re less likely to be caught off guard by a second round of negotiation or end up with less than you expected. Lower mortgage rates could bring more buyers into the market. But agents say sellers shouldn’t expect that alone to recreate the fast-moving market of a few years ago. “Even if rates improve, I don’t think we suddenly go back to the days where every house sells just because it hits the market. Buyers have choices, they’re price sensitive, and they’re willing to wait,” says Nicholas Himes, a HomeLight Elite Agent serving Georgetown, Texas. Aimee Kane, a top Boise, Idaho, agent, says more buyer demand wouldn’t necessarily put sellers back in control. “Today’s buyers are payment-conscious, informed, and willing to wait for the right home.” Lower rates could help, but they shouldn’t change the basics of a good selling strategy. Price for the market you’re in, prepare the home before listing, and make changes quickly if buyers aren’t responding.
The thread running through all five housing market changes is simple: sellers have less room to get the price, timing, or preparation wrong. Buyers are still out there, but they’re looking more closely at value, and negotiations may continue even after an offer is accepted. A top local agent can help you plan for those possibilities before listing, from setting a realistic price and deciding what to repair to estimating likely concessions and how long the sale could take. HomeLight’s Agent Match can connect you with experienced agents in your area who understand current market conditions. That timing matters even more if you also need to buy your next home. If the two transactions don’t line up, bridge loan-style programs like HomeLight’s Buy Before You Sell can give you more flexibility by letting you move forward with your next purchase before your current home sells. Whatever route you take, the bigger adjustment may be resetting expectations. The market you remember from a few years ago may not be the one you’re selling into today.1. Rising inventory may give buyers even more leverage
2. Overpricing is becoming harder to recover from
3. Longer selling times may become more common
4. More deals may face a second round of negotiation
5. Lower mortgage rates may not bring bidding wars back
How sellers can prepare for these housing market changes
