1 in 5 Sellers Cut Their Price. Is Your Next Deal Among Them?
A listing sits. The price drops. Another weekend passes without an offer.
For a seller, that’s frustrating. For an investor with financing ready and a clear renovation plan, it may be the start of a conversation worth having.
The opportunity starts with a price cut. The profit depends on what you do next.
Here’s what the latest numbers mean—and five ways to put them to work.
Sellers are adjusting. Buyers have room to negotiate.
According to Realtor.com’s September 2026 housing report, 20.8% of active listings had a price reduction. That’s more than one in five homes for sale, and the highest monthly share since October 2022.
Buyer activity has softened, too. HouseCanary reported that September contracts for single-family detached homes fell 10.8% year over year, while net new listings declined 15.2%. Those figures suggest a slower market, although competition still varies by neighborhood and price range.
Financing remains a hurdle for retail buyers. Freddie Mac’s average 30-year fixed mortgage rate was 7.24% on October 29, down from 7.40% two weeks earlier but still above 7%.
For investors, the takeaway is straightforward: some sellers may be more willing to discuss price, terms and a dependable closing.
Five ways to turn that opening into a better deal
1. Look for listings other buyers have stopped watching.
Start with homes listed for 60 days or longer, especially those with repeated price reductions. Vacant homes, estate properties and houses needing work deserve a closer look.
Then ask the listing agent: What matters most to the seller right now—price, timing or certainty?
The answer can help you build an offer they’ll consider.
2. Make your offer easy to trust.
A competitive price matters. So does confidence that the deal will close.
Have your financing lined up, understand your timeline and offer a closing date you can deliver. Keep your terms clear and your due diligence focused. A seller who has already lost weeks on the market may value a dependable buyer.
3. Negotiate the whole deal.
Purchase price is only one part of your cost.
Depending on the property and financing program, consider asking for closing cost contributions, repair credits or a closing schedule that reduces your carrying costs.
Compare the total benefit of each option. A concession only helps if it fits the loan requirements and improves your numbers.
4. Work backward from your resale date.
Buying during the winter can give you time to renovate ahead of spring—but the calendar needs to match the project.
Before closing, confirm contractor availability, permit timelines and material lead times. Leave room for delays, especially when exterior work depends on the weather.
A spring listing is a target. Your budget should also support a later sale.
5. Test the deal before you commit.
A reduced asking price doesn’t automatically make a property a bargain.
Use recent comparable sales, a detailed rehab estimate and a realistic allowance for financing, holding and selling costs. Then stress-test the plan:
What if the resale price comes in lower?
What if renovations run over budget?
What if the property takes three extra months to sell?
Would a rental exit cover the expenses and meet refinance requirements?
A rental option can add flexibility, but it needs its own numbers.
Buy with room to breathe.
A seller’s price reduction gets your attention. Your analysis determines whether you should make an offer.
The strongest opportunities leave room for repairs, delays and a realistic profit after every expense. When you find one, being prepared to move can strengthen your negotiating position.
Have a property in mind? Let’s look at the financing.
First Funding Loans helps investors explore financing for purchase and rehab projects, with fix-and-flip and fix-and-rent options for eligible borrowers and properties.
Whether you’re tackling your first project or adding to an established portfolio, we can discuss the financing structure and documentation your deal requires.
Send me the property address, asking price and estimated rehab budget. Let’s review your financing options before you make your offer.
To your next deal,
Jarrod Fennimore
First Funding Loans
📞 +1 732-991-5216
Sources: Realtor.com September 2026 Monthly Housing Trends Report; HouseCanary September 2026 Market Pulse, published October 8; Freddie Mac Primary Mortgage Market Survey, October 29, 2026.
For informational purposes only. This is not an offer or commitment to lend. Financing is subject to underwriting, borrower and property eligibility, and program requirements. Terms and availability may change.
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