Why Half of Homes Sell Below Asking — And How Smart Pricing Can Help You Win

According to Keeping Current Matters, nearly 50% of homes today are selling for less than their asking price — and we believe there’s good reason to see this shift as a chance, not a problem. As a team of real estate agents, we’ve studied what’s driving this trend and how sellers can adapt to succeed. Here’s what you need to know and do in this market.

From Frenzy to What’s “Normal”

Just a few years ago, the market was wildly competitive for sellers. Buyers were competing hard, mortgage rates were low, and many homes sold above asking. Now, that environment has changed. According to recent data from Cotality, around half of all homes currently hit the market below their asking price.

That’s not a bad thing — it’s a return toward the typical market behavior we saw in years like 2018–2019 when 50–55% of listings sold under asking. Between 2021–2022, that number dropped to about 25% thanks to high demand and low rates. But now, rates have moved, demand is less frenzied, and things are settling into a more balanced pace.

Why This Shift Matters if You’re Selling

In our experience, the way a house is priced now has a much bigger impact than it used to. When the market was hot, overpricing often still brought in many offers; buyers were eager and rates made borrowing cheaper. But today's buyers are more cautious, budgets tighter, and choices broader. If your property is priced too high, people simply move on.

Another key point: the first two weeks a home is listed are crucial. That timeframe attracts the most motivated buyers. If your price isn’t appealing in those early days, interest tends to drop sharply. Listings “go stale,” and once that happens, it’s much harder to sell for the original asking price.

The Strategy That Still Wins

While many homes are selling under asking, it’s important to note: the other half are meeting or beating asking price — those that are priced smartly. Here’s what we recommend:

1. Prep your home first Do what you can upfront: repairs, cosmetic fixes, cleaning, staging. The better your home looks, the more likely it is buyers will see value and be willing to pay your price or more. We’ve seen it make a real difference in what offers come in.

   
   

2. Price correctly from day one Don’t rely on listing prices of homes near yours — often those are aspirational and priced high. What matters more is actual recent sale prices in your neighborhood. Work with a real estate agent who has up-to-date local data. That helps you choose a price that draws in serious buyers.

   
   

3. Be flexible in negotiations Price isn’t everything. When buyers negotiate, it might be over repairs, closing costs, or other conditions. Being open to giving in some areas (not everything!) can help close deals faster and avoid reductions in listing price later.

Bottom Line — What We Advise

We believe this market is an opportunity for sellers who adjust their mindset and tactics. Gone are the days when you could overprice and rely purely on competition to drive things up. Now, success comes from smart preparation, accurate and competitive pricing, and readiness to negotiate.

If you want your home to sell at or above asking price, start with:

• A conversation with a local agent who knows what homes are really selling for in your area.

• A plan to get your home looking its best from day one.

• An asking price that reflects current market conditions — not past highs.

As real estate agents, we see firsthand that homes priced well and marketed properly still sell fast and for strong prices. The “reset” in the market simply means that the game has changed — but it’s not worse, just different. The rules that worked a few years ago don’t apply in the same way now. We believe sellers who adapt will still win.

If you’re thinking about selling, don’t leave money on the table. With the right preparation, strategy, and guidance, your home can still attract top offers — even in a shifting market. Reach out today to discuss your goals and get a personalized plan for pricing, marketing, and negotiating.

Source: keepingcurrentmatters.com