The Market Shift That Is Real and the Mistake Too Many Buyers Are Making

Today's market is showing more inventory sitting longer with price reductions happening across many listings. That shift is real and it does mean buyers have more negotiating room than they did a year or two ago. But there is a mistake that Nathan Rufty at Canopy Mortgage sees buyers making repeatedly in response to that data and it is costing them good homes and good deals.

Because price reductions are widespread many buyers are assuming they can lowball every listing they encounter. That is simply not how it works in this business.

Why Every Listing Requires Its Own Evaluation

A home that was overpriced by $50,000 and just had a price cut may still not be a steal. The reduction moved it closer to market reality without necessarily making it a value at the new number. That seller may have simply corrected an obvious overpricing mistake and the home may still be sitting above where the market will actually close a transaction.

On the other side a home that is priced correctly in a strong neighborhood with quality upgrades and move-in ready condition is going to attract multiple offers regardless of what is happening with price reductions elsewhere in the market. Buyers who walk into that situation with a lowball offer are not only likely to lose the home. They risk insulting the seller in a way that shuts down any productive negotiation before it can begin.

The context of each individual listing is what determines whether leverage exists and how much. A blanket lowball strategy applied uniformly across every property regardless of condition, pricing accuracy, or days on market is not a negotiating strategy. It is a shortcut that regularly costs buyers the homes they actually want.

Three Things to Look at Before You Write Any Offer

As Nathan Rufty explains the analysis that separates successful buyers from frustrated ones comes down to three specific factors evaluated together before any offer is written.

How long has the home been on the market? A property that has been sitting for 60 to 90 days without an accepted offer is in a fundamentally different negotiating position than one that listed last week. Extended days on market creates genuine seller motivation that translates into flexibility on price, terms, and concessions that simply does not exist on fresh listings.

How is the home priced compared to recent comparable sales? Looking at what similar homes have actually sold for in the most recent period tells you whether the current asking price is above, at, or below where the market is transacting. That comparison is the foundation of any informed offer and without it any number you put on paper is a guess rather than a strategy.

Has the seller already reduced the price once, twice, or even three times? A seller who has already moved off the original asking price multiple times has been getting consistent market feedback that their expectations needed to adjust. That pattern creates a different negotiating dynamic than a seller who listed recently and has not yet received that feedback.

When a home has been sitting with no offers and the seller has already reduced the price multiple times that is where real buyer leverage exists in the current market and where a thoughtful and well-supported offer can produce genuinely favorable terms.

Why the Cleanest Offer Often Wins Over the Lowest Number

Here is the part that many buyers miss and that makes a significant difference in outcomes. The best offer is not always the lowest number. Sometimes the cleanest terms win the deal.

A seller who has been waiting weeks or months for the right buyer is not only looking for a lower price. They are looking for certainty that the transaction will close without complications. Going in with a low offer and asking for everything at the same time is a combination that can feel insulting to a motivated seller and prompt them to turn down an offer that might otherwise have been workable with a different approach.

The right strategy is to connect with your realtor and your lender before making any offer. Your professional team working together is what allows you to understand what you are looking for in terms and budget and then structure an offer that is strong and acceptable to the seller rather than one that starts the relationship on the wrong foot.

When you are pre-approved with your lender and working closely with your realtor on how to present a clean and credible offer you are in a fundamentally stronger position than a buyer who is simply trying to get the lowest possible number without regard for how the seller receives the offer.

Nathan Rufty at Canopy Mortgage works with buyers to get pre-approved and build a purchasing strategy that positions them to write strong and competitive offers when the right home appears. Call or text Nathan Rufty directly at 909-503-5600 to connect and find out what your numbers look like right now.

Sources

NAR.realtor
Realtor.com
MortgageNewsDaily.com
Zillow.com
Forbes.com