From Frenzy to Reality: A Market Reset

Not long ago, it felt like every home sale came with a bidding war. Sellers were fielding multiple offers, many of them above asking price, and homes were going under contract within days. For those who listed during that frenzied market, the experience was exhilarating and profitable.

But times have changed. Fast forward to 2025, and the housing market looks very different. According to recent data from Cotality, about 50% of homes today are selling below their asking price. That’s a stark contrast from the recent boom years when only a quarter of homes went for less than asking.

At first glance, this shift might feel discouraging. Sellers accustomed to sky-high competition may fear they missed the window of opportunity. Yet, the reality is more nuanced. What we’re seeing now is less of a collapse and more of a return to normalcy.

Looking at the Numbers

To understand today’s market, it helps to take the long view.

• 2018–2019: Roughly half of homes sold under asking price. That was considered normal.

• 2021–2022: Fueled by ultra-low mortgage rates and limited inventory, buyer demand surged. Only about 25% of homes sold under asking, while multiple offers became the rule, not the exception.

• 2025: We’ve circled back. About 50% of homes are selling under asking once again—almost exactly where the market sat before the pandemic-fueled boom.

In other words, the housing market didn’t “crash.” It corrected. The feverish pace of the past few years was never sustainable. Instead, what’s happening now is a rebalancing—a market that favors strategy and preparation rather than pure luck.

Why Your Pricing Strategy Matters More Than Ever

For sellers, the biggest takeaway from this reset is clear: pricing is everything.

During the frenzy, sellers had the luxury of overpricing their homes and still attracting eager buyers. Now, those days are gone. Buyers are choosier, budgets are stretched thinner thanks to higher interest rates, and there are simply more homes to pick from.

This creates a reality where the initial asking price can make or break your sale. Your first two weeks on the market are the most critical. That’s when your listing is fresh, buyers are most excited, and serious shoppers are watching closely. If you miss the mark during this golden window, your home risks sitting unsold and growing stale. Once that happens, buyers may assume something’s wrong with the property, even if it’s simply overpriced.

The result? Price cuts, longer time on market, and lower offers than you could have received had you priced correctly from the start.

The Psychology of Buyers

Today’s buyers are approaching the market differently than they did a few years ago. Rising mortgage rates mean affordability is top of mind. Even if they love your home, buyers know they have to make the numbers work. That means they’re less willing to stretch their budgets for a house that’s overpriced.

Additionally, buyers today have options. With more homes available, they can afford to be selective. They may tour several properties before deciding, and if your price feels inflated, they’ll move on without hesitation.

This isn’t necessarily bad news. It just means sellers must adjust their expectations. The new market rewards preparation, competitive pricing, and flexibility. Those who adapt are still seeing strong results.

The Ideal Formula for Selling in Today’s Market

So, how do you set yourself up for success when half of homes are selling under asking? The good news is that the other half are still selling at—or even above—asking. Here’s how to position your home in that winning category.

1. Prep Your House Before You List

Think of your home as a product competing for attention. The more appealing it looks, the better your odds of attracting serious offers. Simple improvements can go a long way:

• Touch up paint where it’s chipped or faded.

• Deep clean carpets, kitchens, and bathrooms.

• Replace outdated fixtures with modern, affordable upgrades.

• Boost curb appeal with fresh landscaping and tidy exterior maintenance.

These small steps help your home make a strong first impression. When buyers see a well-maintained property, they’re more likely to offer confidently—and closer to your asking price.

2. Price Strategically from Day One

Don’t base your asking price on what other homes in your neighborhood are listed for. Those numbers can be misleading. Instead, lean on your real estate agent to analyze what homes in your area have actually sold for in recent months.

Pricing slightly ahead of the market—meaning competitively rather than aggressively—can generate more interest. In some cases, a well-priced home attracts multiple buyers and ends up selling for more than if it had been listed too high initially.

Remember: you’re not just setting a price; you’re creating a strategy to generate interest.

3. Stay Flexible

Even with preparation and smart pricing, negotiations are part of the process. Be prepared for buyers to ask for concessions. That doesn’t always mean cutting your asking price—it might mean covering closing costs, offering a credit for repairs, or being flexible on the closing date.

Approaching negotiations with an open mind signals to buyers that you’re serious about selling. And sometimes, a little flexibility on the details can protect your asking price in the long run.

Real-World Example: The Stale Listing vs. the Smart Sale

Imagine two sellers in the same neighborhood.

• Seller A lists their home at $600,000, even though recent sales suggest $575,000 is the more accurate value. The home sits for six weeks with little interest. Eventually, they cut the price to $570,000, but by then, buyers are skeptical. The home finally sells for $560,000.

• Seller B lists at $575,000 from the start. The price generates interest, leading to two competing offers in the first week. The home sells for $580,000.

The difference comes down to strategy. Seller A chased the market, while Seller B priced for the market that exists today.

Why a Local Agent Is Your Secret Weapon

Navigating today’s real estate landscape without professional guidance is risky. A skilled local agent brings market expertise, pricing insight, and negotiation skills that can make all the difference.

Here’s what an agent does for you:

• Market analysis: They’ll provide a clear picture of recent sales and current competition, helping you avoid the trap of overpricing.

• Marketing power: From professional photography to online exposure, agents know how to showcase your home to attract the right buyers.

• Negotiation expertise: When offers come in, your agent ensures you’re not leaving money on the table—or giving away unnecessary concessions.

• Objective advice: Selling can be emotional. An agent offers level-headed guidance to help you make decisions that align with your financial goals.

In short, having a standout agent is your best chance to turn today’s market realities into a successful sale.

Bottom Line

The housing market of 2021 and 2022 is gone. The environment today demands a shift in strategy. About half of homes are selling below asking price—but the other half are proving that with the right approach, success is still very achievable.

If you want your home to sell for top dollar, start by preparing it properly, pricing it strategically, and staying open to negotiations. Most importantly, partner with a trusted local agent who understands the nuances of your market.

The first two weeks are your make-or-break moment. With the right plan, you can stand out, attract serious buyers, and sell your home at a price that reflects its true value.

So, don’t get stuck in yesterday’s mindset. Embrace the market you’re in today—and set yourself up to win.