The Home Seller And a Changing Market

The median U.S. home price has reached $414,000, a record high. However, sales have slowed, with April 2025 marking the slowest April since 2009. Buyers are hesitant, often submitting offers below asking prices, leading to increased contract cancellations. Inventory has risen by over 20% year-over-year, providing buyers with more options and leverage. This shift challenges the home seller to remain competitive in pricing and presentation. (Source: MarketWatch)

Strategic Pricing Is Crucial for the Home Seller

Approximately 23% of listings received price cuts in March 2025, the highest rate since 2018. Overpricing can lead to prolonged market time and increased carrying costs. For instance, a $500,000 home with $3,000 monthly expenses incurs $9,000 in costs over three extra months. Buyers now expect concessions, such as assistance with closing costs or mortgage rate buy-downs. The home seller must be prepared to negotiate and offer incentives to attract offers.

Market Trends Demand Flexibility

Mortgage rates have climbed to 6.86%, limiting buyer affordability. Despite this, the median list price remains steady at $431,250. You can make some calculations about your affordability and monthly payments here. This disconnect requires the home seller to adjust expectations and consider market conditions when setting prices. Increased inventory means buyers have more choices, making it essential to ensure their property stands out through competitive pricing and appealing presentation. In April, the typical home spent 50 days on the market, which is 4 days longer than the same time last year. This marks the 13th straight month of homes taking longer to sell year-over-year. Still, homes are moving more quickly than they did before the pandemic, spending 5 fewer days on the market than the April 2017–19 average. (Source: AP NewsRealtor)

Enhancing Appeal: Tips for the Home Seller

Effective home staging can significantly impact a sale. Staged homes often sell faster and at higher prices. Simple steps include decluttering, neutralizing decor, and highlighting key features. Staging is about showcasing an engaging, move-in ready home that creates an emotional connection with the buyer. Updating décor with on-trend, inviting style—particularly in living rooms, primary bedrooms, kitchens, and dining rooms—can make a memorable impression. Once engaged, buyers will be more committed and possibly willing to increase their offer, and they may be less likely to change their minds at the last minute or ask for concessions. Staging is an investment that helps maximize the rate of return on the sale of the property—and usually costs less than the first price reduction. With an average investment of 1% of the sale price into staging, about 75% of sellers saw an ROI of 5% to 15% over asking price, according to data from the Real Estate Staging Association (RESA).(Source: NAR)

Navigating Commission Changes

Recent changes in commission structures mean buyers are now expected to compensate their own agents, potentially saving the home seller thousands of dollars. However, many sellers continue to pay buyer agent commissions, often unaware of their new negotiating power. Under the old rules, home sellers were responsible for paying both their real estate agent and any agent the buyer brought into the deal. Often, that meant paying 5% or 6% in total, typically split 50-50 between the two agents, with each getting 2.5% or 3%. On a $500,000 sale with a 6% commission, for example, the seller would have to fork over $30,000, with $15,000 going to each agent.

Under the new rules, sellers will still have to pay their agent, typically as a percentage of the sale price. But buyers will be largely responsible for compensating their agents, in the form of a percentage, an hourly rate, or a flat fee. Using the example above, a seller who negotiated a 3% commission with their agent and paid the buyer’s agent nothing would save $15,000. (In some cases, sellers might still want to help a buyer cover at least a portion of the cost as an incentive, but doing so would be voluntary.) (source: Investopedia)

Conclusion: Success Strategies

In 2025, the home seller must be proactive and adaptable. Understanding market trends, pricing competitively, enhancing property appeal, and being informed about commission structures are key to a successful sale. By implementing these strategies, the home seller can navigate the challenging market and achieve their selling goals.