Is It Actually a Buyer’s Market Now — and How Much Can I Negotiate?

November 4, 2026 | Michael Belfor

The short answer: in many parts of the country — and in several California markets — buyers have more leverage than they did a year ago. But “buyer’s market” does not mean every seller will take 10% off. The real opportunity is often a combination of price, closing-cost credits, repairs, rate buydowns, and better contract terms.

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Nationally, sellers are clearly bending more.

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Redfin reported that 44.7% of buyers received seller concessions in August, the highest August share in its records going back to 2020.

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And AP recently reported that roughly 21% of active listings had price cuts, while Redfin estimated there were 63% more sellers than buyers across the 50 largest U.S. metros.

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That is leverage.

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But it is not the same everywhere.

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I. “BUYER’S MARKET” DOES NOT MEAN “LOWBALL EVERYTHING”

This is where buyers can get themselves in trouble.

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A home that is new to market, beautifully priced, and getting multiple offers is not the same negotiation as a home that has been sitting for 48 days with two price reductions.

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One seller may laugh at 5% below asking.

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Another may take it and pay your closing costs.

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The market matters.

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But the property matters too.

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The first thing I want to know is:

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How long has it been listed?

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Has the price already been reduced?

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Did it fall out of escrow?

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Are there competing offers?

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Is the seller vacant?

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Are they carrying two homes?

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Do they need a fast close?

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Is there deferred maintenance?

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Those details tell you where the leverage actually is.

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II. CALIFORNIA IS NOT ONE MARKET

California is especially fragmented right now.

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Recent Redfin data cited in California housing reporting showed seller concessions in more than half of transactions in markets such as Los Angeles, Riverside, Sacramento, and San Diego.

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But the Bay Area can still behave very differently.

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San Francisco and San Jose showed much lower concession rates.

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That makes sense.

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A desirable home in a supply-constrained neighborhood can still attract serious competition even when the national market is softer.

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So I would never tell a buyer:

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“It’s a buyer’s market, offer 10% under.”

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I would say:

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“Let’s figure out how much leverage THIS house gives us.”

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III. PRICE IS ONLY ONE THING YOU CAN NEGOTIATE

This is the part I think buyers underuse.

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You can negotiate:

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Purchase price.

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Closing-cost credit.

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Permanent rate buydown.

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Temporary 2-1 buydown.

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Repairs.

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Credits instead of repairs.

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Home warranty.

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Closing date.

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Rent-back terms.

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Contingency periods.

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Personal property.

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Or a combination.

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Sometimes a seller will resist a $20,000 price reduction but happily give a $20,000 credit because the headline sales price matters to them.

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For the buyer, that credit may be more valuable anyway.

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If $20,000 eliminates closing costs and buys down the mortgage rate, the monthly and upfront benefit can be much larger than the payment reduction from cutting the price by $20,000.

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That is why financing should be part of the offer strategy.

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IV. HOW MUCH CAN YOU ACTUALLY NEGOTIATE?

There is no universal percentage.

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But I would start with the evidence.

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If the home has been listed three days and has five offers?

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Your leverage may be almost zero.

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If it has been listed 45 days, had a price reduction, and the seller already moved out?

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Now we have a conversation.

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If it is stale at 75 days and the seller is paying carrying costs every month?

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That conversation gets even more interesting.

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Recent national data show price cuts and concessions are both becoming more common, and roughly 15% of buyers getting concessions were also getting a price reduction.

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That is the sweet spot.

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Not just discounting the house.

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Getting multiple forms of value.

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V. A $20,000 CREDIT CAN BE WORTH MORE THAN A $20,000 PRICE CUT

Let’s use a simple hypothetical.

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$1,000,000 purchase.

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10% down.

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The seller offers either:

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A $20,000 price reduction.

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Or a $20,000 credit toward eligible closing costs and rate buydown.

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A $20,000 price reduction lowers a 90% loan by about $18,000.

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At an illustrative 7% rate over 30 years, that is roughly $120 per month in principal-and-interest savings.

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But if the $20,000 credit covers closing costs and meaningfully lowers the rate, the buyer may save much more cash upfront and potentially more each month.

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Which is better?

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We run both.

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That is the point.

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VI. FAST AND CLEAN CAN STILL BE WORTH MONEY

Buyers sometimes assume negotiation means only offering less.

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Not necessarily.

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A seller may accept less money from a buyer who can offer:

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A fully underwritten approval.

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Short financing contingency.

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Short appraisal contingency.

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Fast close.

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Strong earnest money.

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Clean documentation.

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Reliable communication.

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I have seen speed and certainty create leverage that a higher offer did not.

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If a seller is worried about a deal falling apart, a buyer who can actually close may have more negotiating power than they realize.

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VII. DO NOT NEGOTIATE YOURSELF OUT OF THE HOUSE

There is also a difference between being aggressive and being unserious.

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If you love the property and it is priced correctly, trying to “win” every last dollar can cost you the home.

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You do not need to beat the seller.

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You need to structure the best deal the seller will actually accept.

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Sometimes that is 3% below asking.

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Sometimes it is full price with a large credit.

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Sometimes it is asking price with a temporary buydown and repairs.

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Sometimes the right answer is simply writing a clean offer before somebody else does.

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THE BOTTOM LINE

Yes, buyers have more leverage in many markets right now.

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Seller concessions are common.

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Price reductions are common.

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Homes are taking longer to sell in many areas.

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But the best buyers are not simply throwing low offers at everything.

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They are negotiating strategically.

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Look at:

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Days on market.

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Price reductions.

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Seller motivation.

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Competition.

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Property condition.

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And what financing concessions can actually do for your payment and cash to close.

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The question is not:

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“How much under asking can I offer?”

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The better question is:

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“How much total value can I negotiate out of this transaction without losing the house?”

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That is where today’s market gets interesting.

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ABOUT MICHAEL BELFOR

Michael Belfor is a Branch Manager and Loan Originator with American Pacific Mortgage, bringing approximately 24 years of mortgage lending experience.

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An APM President’s Club and Top 1% originator since 2017, Michael helps homebuyers, homeowners, real estate investors and real estate professionals navigate conventional, jumbo, FHA, VA, Non-QM, DSCR, TIC, condo, construction and other mortgage financing solutions.

California homebuyers asking whether it is a buyer’s market and how much they can negotiate should evaluate days on market, seller price reductions, competing offers, property condition, seller motivation, closing-cost credits, mortgage-rate buydowns, repairs, and financing strength before deciding how aggressively to offer. Buyers in Orange County, Los Angeles, Riverside County, Sacramento, San Diego, San Francisco, Marin, Sonoma, and the Bay Area may have very different negotiating leverage depending on local inventory and property-specific demand.