Why 50% of Homes Are Selling for Under Asking and How To Avoid It

Have you noticed lately how many houses seem to sell below their list price? You’re not imagining things. In fact, recent real estate data shows more than half of homes are closing below asking price.

That’s a big turn from a couple of years ago, when sellers often had the upper hand. If you’re getting ready to sell (or helping someone else do it), understanding why this shift is happening can save you from leaving money on the table.

What’s Going On?

Let’s break down what’s driving this trend:

• More bargaining power for buyers. Inventory has loosened in many markets. Buyers have more options and can be pickier.

• Higher interest rates. Mortgage rates have weakened affordability, so many buyers are more cautious.

• Stiff seller expectations. Some homeowners still price based on peak-market assumptions, hoping for bidding wars that simply aren’t happening.

• Longer days on market. When a listing lingers, buyers assume something is wrong — and offer lower to compensate.

• Geographic variation. In some cities, especially where growth has slowed, under-ask sales are more common.

The data doesn’t lie: close to 56 % of homes in many U.S. markets are now selling below their asking price.

How to Avoid That Fate (or At Least Limit the Damage)

You can’t force buyers to overpay — but you can stack the odds in your favor. Here’s how:

1. Price it smart — anchored to real comps, not emotions

Let recent, similar home sales be your guide, not what you wish the value would be. If you overreach, you may scare off serious buyers.

2. Get your home in top shape

First impressions matter. Small repairs, fresh paint, clean landscaping — these investments help justify a stronger asking price.

3. Time matters — make a splash early

The first two weeks on market tend to attract the most activity. If you miss that window with a bad price, your listing can stagnate.

4. Use incentives or creative terms

If buyers are holding back because of loan costs, you can help with closing cost credits, rate buydowns, or flexibility on move-in dates. Sometimes flexibility is worth thousands.

5. Be ready to pivot

If traffic is low after a week or two, don’t dig in your heels. Be open to a small adjustment before a bigger drop becomes inevitable.

6. Use a savvy agent

A real estate agent who’s active in your market can spot trends you may miss, push for smart offers, and negotiate with buyers’ agents. Their insight can protect you from selling too low.

Final Thoughts

Yes — the days where every home flew above asking are fading in many markets. But selling below asking doesn’t have to be your story. With smart pricing, preparation, and a willingness to adapt, you can still come out ahead.

👉 Have questions about selling in today’s market? Feel free to chat with me anytime or schedule a free consultation. I’d love to walk you through your options and help you get the best result for your home.