Homebuyers

More Homes Are For Sale. How Buyers Can Use That to Their Advantage

It’s been a while since homebuyers had the upper hand. But this summer, that balance is finally beginning to shift.

In June, active home listings topped 1 million for the second month in a row, according to Realtor.com data. That’s no small feat—especially after years of record-low housing stock that often forced buyers to act fast and pay more.

“As a listing agent for over two decades, I can tell you—this kind of [housing] inventory shift doesn’t happen often,” said Gary Lanham, broker associate with the Gary Lanham Group at Coldwell Banker in Fort Lauderdale, Fla. “It’s giving buyers more room to think, negotiate, and actually enjoy the process again.”

But more listings don’t automatically translate into better deals. The advantage only comes when buyers know what to ask for and how to spot homes that are truly negotiable.

Here’s how to make the most of this window of opportunity.

Homebuyers may want to ask for seller-paid closing costs

One of the most overlooked benefits of rising housing stock is the opportunity to ask sellers to cover some of the costs associated with buying a home.

Closing costs typically add up to 2% to 5% of the purchase price. They include fees like title insurance, loan origination charges, and property taxes.

“When the inventory is high, buyers can negotiate lower prices with closing cost assistance,” said Eva Rose P. Reyes of the East Coast’s Bay Management Group. The rental property management company operates in Maryland, Pennsylvania, Virginia, and Washington, D.C.

These costs can add thousands of dollars to your initial expenses. So, having the seller cover them can make a big difference in your budget.

Homebuyers should look for price reductions

In markets with more listings than buyers, overpriced homes don’t move. That’s leading more sellers to adjust their expectations—and their asking prices.

“I’ve been watching homes sit a little longer, especially those priced too high out of the gate,” said Lanham. “A lot of sellers are adjusting, some more than once. And when that happens, the door opens for buyers to step in with a bit more confidence and leverage.”

If a home has had at least one price cut, that’s a clear signal that the seller may be open to negotiation. It doesn’t hurt to ask for more, whether that’s a bigger reduction or other perks to help offset your costs.

Homebuyers can negotiate inspection credits or repairs

Another benefit of today’s slower pace: home inspections are no longer getting waived. Buyers are even returning to request repairs or credits for issues found during due diligence.

“I recently worked with a couple who had been outbid multiple times during the frenzy in 2022,” said Lanham. “This summer, they secured a fully updated home below asking with inspection credits, something we hadn’t seen in a while.”

In some cases, buyers can negotiate to have repairs completed before closing. In others, they can request a credit to put toward the fixes themselves after moving in.

“Another option is to request repairs or upgrades due to longer inspection periods,” added Reyes.

Either way, buyers now have a say in the condition of the home they’re buying.

Homebuyers may find value in overlooked listings

Not every home that’s been sitting on the market for a while is a dud. In fact, many properties that have lingered on the market are simply waiting for the right buyer to come along. These properties may even come with a seller who’s more motivated than most.

And don’t rule out listings that fell out of contract and have since returned to the market.

“Like second chances in life, they often come with new motivation and a little less ego from both sides,” said Lanham.

Lanham compares it to shopping the “last call” rack. “There’s quality there, but you need a sharp eye and good timing,” he added.

Homebuyers should take their time—but stay sharp

When housing stock was tight, buyers often had to make an offer after a single showing or risk losing the home. Today, there’s more breathing room to think, compare, and even visit the home more than once before making a decision.

Buyers can take the time to view multiple properties that suit their budget, needs, and timeline—and walk away if something doesn’t feel right.

“If you know it’s the one, pull the trigger,” said Kristena Kay, a real estate broker at The Kay Firm in the Charlotte, NC, metro area. “But if you’re on the fence, look around.”

Kay recently helped clients purchase a six-acre farm for $65,000 below the asking price—plus secure $20,000 in seller concessions.

“This would have been unheard of if it were a seller’s market,” said Kay.

Still, Reyes advises buyers not to chase the biggest discount blindly.

“Focus on homes that align with long-term affordability and property maintenance expectations, instead of grabbing the first ones that offer the lowest price,” said Reyes.

This homebuying window may not stay open forever

It’s true that buyers currently have more choice, less competition, and far more negotiating power right now in many markets than they’ve had in years. That means now is the time to speak up, especially in places where there isn’t a lot of competition for homes.

“In a stronger buyers’ market, I live by the motto ‘It doesn’t hurt to ask,’” said Kay. “The worst a seller can say is no—and guess what? There are a few other homes to choose from in this market.”

But this moment may be short-lived. If mortgage rates begin to fall later this year, demand will likely rebound. Those multiple-offer scenarios could stage a comeback.

Until then, buyers who do their homework, keep an eye out for motivated sellers, and negotiate smartly have a real shot at scoring a great deal.