The typical home is selling below its list price in 41 of the 50 most populous U.S. metros, according to a new analysis by Best Interest Financial and Clever Real Estate. The findings reveal a sharply divided market, with buyers gaining leverage in Texas, Florida, and parts of the Midwest while sellers remain firmly in control across several Northeastern and coastal metros.
For loan originators, that divide affects more than the purchase price. In markets where listings are lingering and price reductions are common, borrowers may have greater latitude to request seller-paid closing costs, temporary or permanent rate buydowns, and repair credits.
Detroit ranked as the most buyer-friendly market in the study, while Hartford, Connecticut, offered buyers the least negotiating power.
Detroit Leads Buyer-Friendly Markets
Detroit topped the study’s ranking based on its sale-to-list-price ratio, prevalence of price reductions, and average price cut.
About 19.8% of active Detroit listings had received a price reduction, with sellers cutting prices by an average of 6.2%. That was the second-largest average reduction among the 50 metros, trailing only San Francisco’s 6.3%.
Detroit also had the lowest median sale price in the study, at $224,308.
The 10 markets where buyers had the most negotiating power were:
- Detroit
- San Antonio
- Austin
- Pittsburgh
- Houston
- Tampa
- Memphis
- Dallas
- Indianapolis
- Philadelphia
The 15 most buyer-friendly markets averaged 4.5 months of housing supply, compared with 3.7 months nationally. Approximately 23% of their active listings had received a price reduction, compared with 20.2% nationwide.
Sellers in those markets reduced their asking prices by an average of 4.3%, slightly more than the 4% national average.
Those conditions can give originators an opening to move the borrower conversation beyond whether a seller will accept a lower offer. Depending on the property and local market, a concession that reduces the borrower’s upfront expenses or monthly payment could be more valuable than an additional price reduction.
Texas Buyers Find Room To Negotiate
Texas stood out as one of the country’s most buyer-friendly regions, with San Antonio, Austin, Houston, and Dallas all ranking among the top 10 markets for negotiating power.
San Antonio had the highest share of discounted listings in the study, at 28.2%. Price reductions had been applied to 26.5% of listings in Austin, 26.1% in Dallas, and 24.8% in Houston.
Homes were also taking nearly three months to sell in San Antonio and Austin, with median market times of 86 and 87 days, respectively. That gives buyers and their agents more time to evaluate financing strategies without the same pressure found in markets where properties routinely attract multiple offers.
Houston recorded a 96% sale-to-list-price ratio, one of the lowest among the metros studied. Austin and San Antonio followed at 96.59% and 96.92%, respectively.
Florida also leaned toward buyers, with Tampa, Miami, Orlando, and Jacksonville appearing among the 15 most favorable markets.
Hartford Remains Firmly In Sellers’ Hands
The Northeast presented a very different picture.
Hartford ranked as the most difficult market for buyers to negotiate, with homes selling for approximately 104.3% of their list price. Only 10.6% of its active listings had received a price reduction.
The 10 markets where buyers had the least negotiating power were:
- Hartford
- San Francisco
- Chicago
- Milwaukee
- Providence
- Richmond
- Virginia Beach
- Boston
- Fresno
- Washington, D.C.
Those markets averaged just 2.4 months of housing supply, well below the national level. Homes sold for an average of 101.2% of list price, and only 14% of active listings had received a price reduction.
Nine of the 50 metros studied recorded a sale-to-list-price ratio above 100%: San Francisco, Hartford, San Jose, Boston, New York, Milwaukee, Richmond, Providence, and Chicago.
In those markets, originators may need to focus more heavily on fully underwritten preapprovals, appraisal-gap planning, rapid communication, and financing structures that allow borrowers to compete without exceeding a sustainable monthly payment.
Buyer Leverage May Not Be Deepening
Although below-list sales are widespread, the study does not show that negotiating conditions are improving everywhere.
Price-drop activity declined year over year in 31 of the 50 metros analyzed, while the sale-to-list-price ratio increased in 19. That suggests buyers have leverage across much of the country, but their advantage may have already peaked in some markets.
The Midwest was a notable exception. Eight of the 15 metros with the largest year-over-year increases in price reductions were in the region: Cincinnati, Louisville, Detroit, Indianapolis, Grand Rapids, Kansas City, Minneapolis, and St. Louis.
That uneven shift underscores the need for mortgage professionals to rely on current, local listing data rather than national descriptions of a “buyer’s market” or “seller’s market.”
A borrower in San Antonio may be able to negotiate both the price and a substantial seller credit. A similarly qualified borrower in Hartford could still face an above-list offer and limited concessions.
Understanding which side has leverage can help shape the financing conversation before an offer is written. The mortgage rate may set the boundaries of a buyer’s budget, but in a growing number of markets, negotiation can determine how much of that budget the borrower ultimately needs to use.
Best Interest Financial analyzed Redfin data for the 50 largest U.S. metros. Markets were scored using the average sale-to-list-price ratio, the percentage of active listings with price reductions, and the average reduction as a percentage of the original asking price.
*This article was drafted with AI assistance and reviewed and edited by a human editor before publication.
