7 Signs a Home Seller May Be Ready to Negotiate

Quick Answer: Nationally, buyers outnumbered sellers in July, and headlines are calling most major metros a buyer's market. Locally, that story is more mixed. San Bernardino and Riverside County inventory is actually tighter than it was a year ago, and homes are selling a few days faster. So instead of assuming you have leverage because of what you read online, look for it listing by listing: a home sitting longer than similar ones nearby, a price cut, a failed escrow, needed repairs, a vacant house or a listing with little buyer activity. Those seven signals tell you more about your negotiating position than any national headline will.

In July, the number of U.S. homebuyers hit a new low at 966,752, according to Redfin. Meanwhile, nearly 1.46 million sellers were in the market, meaning sellers outnumbered buyers by nearly half a million people. Nationally, that's translating into real negotiating power for buyers who are still shopping. Nearly 80% of the largest U.S. metros, 39 out of 49, are now considered buyer's markets.

Here's where I have to be straight with you: that's not what our local numbers show right now. In San Bernardino County, single-family inventory dropped 16.9% year over year to 5,765 homes, and days on market fell to 42, down from 44 a year ago. In Riverside County, inventory dropped 22% to 6,600 homes, and days on market fell to 45, down from 49. Sellers in both counties are also netting a slightly higher percentage of their list price than they were last July. That's a market that's held its footing, not one that's tipped toward buyers the way the national numbers suggest.

None of that means you have no leverage. It means you can't assume leverage just because you saw a national buyer's market headline. You have to look for it, home by home. Here are the seven signs I watch for with my buyers, and what our local data says about each one.

Has This Home Been on the Market Longer Than Similar Ones Nearby?

The longer a home sits, the more likely a seller's expectations have started to shift.

A seller who expected an offer in the first couple of weeks tends to get more flexible once they've watched comparable homes nearby go under contract while theirs is still sitting. That doesn't automatically mean something is wrong with the house. It may have been overpriced, listed at an awkward time or just poorly marketed.

Here's what I'm seeing right now:

• San Bernardino County median days on market (single family): 42, down from 44 a year ago
• Riverside County median days on market (single family): 45, down from 49 a year ago

Those averages are actually a few days faster than last summer, which tells you the typical well-priced home here isn't lingering. So a home that's been sitting for 60, 75 or 90 days in either county isn't just a little behind average, it's an outlier, and that gap is exactly where your negotiating room lives.

Has the Seller Already Reduced the Price?

A price reduction is one of the clearest signs a seller's original expectations didn't match the market's response.

One reduction may just reflect a market correction or an ambitious opening price. Multiple reductions usually mean the seller is getting more motivated to bring in an offer. When you spot one, pay attention to how much the price dropped, how long the home sat before it happened, whether there's been more than one cut, and how the current price compares with what similar homes have actually sold for nearby.

A price reduction doesn't mean the seller will take a lowball offer. It does mean there's an opening to bring a number backed by real, recent local sales, not a guess.

Did the Listing Fall Out of Contract?

When a pending sale falls apart and the home comes back on the market, the seller is often more ready to negotiate than a brand-new listing would be.

They've already been through the process once: accepted an offer, signed paperwork, maybe started packing. Having that fall through is frustrating and can throw off their whole timeline. Before you write an offer, ask me to find out why the last deal ended. It could have been the buyer's financing, an inspection issue, an appraisal that came in low, or something else entirely.

If the reason had nothing to do with the property, or it's something you're already prepared to handle, you may be in a stronger position than the listing history suggests at first glance.

Does the Home Need Repairs or Updates?

A home that needs work opens up negotiating room, especially when move-in-ready homes are available nearby.

An outdated kitchen, an aging roof or HVAC system, worn flooring or visible deferred maintenance will scare off buyers who don't want a project on top of a mortgage. That smaller buyer pool works in your favor. Depending on the home and how you're financing it, you could ask the seller to lower the price, complete specific repairs, provide a credit at closing, or contribute toward your closing costs.

Get real estimates before you decide what to ask for. A cosmetic fix is one thing. An expensive roof, foundation or system replacement is another, and it can change whether the home pencils out for you at all.

Are Several Comparable Homes for Sale Nearby?

More competing listings generally means more leverage for you, because sellers have to compete for your offer instead of the other way around.

This is where our local inventory numbers matter, and I want to be honest with you about them:

• San Bernardino County single-family inventory: 5,765 homes for sale, down 16.9% from a year ago
• Riverside County single-family inventory: 6,600 homes for sale, down 22.0% from a year ago

That means, compared to last summer, you likely have fewer comparable homes to point to as leverage in any given neighborhood. There are still thousands of active listings across both counties, so this sign hasn't disappeared. It's just not as strong a card as it was a year ago, and it's worth confirming with current comps before you count on it.

When you do find several similar homes competing for buyers, compare each one's asking price, condition, days on market, recent price changes, property taxes and included features. Letting a seller know you're weighing other comparable properties can strengthen your offer, especially if theirs has sat longer than the alternatives.

Has the Seller Already Moved?

A vacant home can mean the seller is carrying costs for a property they're no longer living in.

Mortgage payments, insurance, taxes, utilities and upkeep add up fast, and if they've already bought their next home, they may be juggling two housing payments at once. That doesn't mean you should assume desperation. But their timeline and carrying costs may matter to them as much as the final price does.

A clean offer with solid financing and a closing date that works for them can be genuinely attractive, even if it's not full price.

Has the Listing Gotten Little Buyer Interest?

Limited activity is another clue worth checking on. I can find out whether a home has received offers, how well-attended its open houses have been, and whether other buyers are actively circling it.

Signs of limited interest include few showings, repeated open houses, no offers after several weeks on the market, frequent listing updates, new incentives being added, or language in the listing that hints the seller is motivated. If there's no competing offer in the picture, you likely have more room to complete inspections, evaluate the home carefully and negotiate without the pressure of a bidding war.

What Can You Negotiate When Buying a Home?

A lower price is usually the first thing buyers think of, but it isn't the only lever available. Depending on the property, the seller and the local market, you may also be able to negotiate closing costs, a mortgage rate buydown, your preferred closing date, extra time to complete inspections, the inclusion of appliances or furnishings, more flexibility on contingencies, or credits for repairs and improvements.

Sometimes a closing-cost credit or a rate buydown puts more money in your pocket over time than a small price reduction would. I can run those numbers side by side with your lender so you're negotiating for what actually helps you most.

How Do You Use Your Leverage Without Losing the Home?

Having leverage doesn't mean submitting a lowball offer or piling on unreasonable demands. A seller may be willing to negotiate, but they still want to feel like the offer reflects the value of their home. Push too hard and they may reject it outright or stop being willing to work with you at all.

Before you decide what to negotiate, walk through how the asking price compares with recent sales, how long the home has been on the market, whether the price has already been reduced, the home's condition, whether other buyers are circling, which terms seem to matter most to the seller, and which concessions would actually be worth the most to you financially.

Is This a Good Time to Buy in the Inland Empire?

Redfin Senior Economist Asad Khan says the current national market may be creating an opening for buyers and sellers to meet in the middle:

"Buyers are dropping out faster than sellers, giving the buyers who remain more options and more negotiating power. At the same time, uncertainty around whether the Fed will hike rates, and this summer's rising mortgage rates, are keeping many would-be buyers on the sidelines. That makes the stretch between now and Labor Day a potential sweet spot for people who need to move: buyers have leverage, while motivated sellers may be willing to negotiate before the early-fall rush brings some buyers back to the market."

Here in San Bernardino and Riverside counties, months of supply tells a somewhat different story than the national headlines:

• San Bernardino County months of supply: 4.7, down from 5.7 a year ago
• Riverside County months of supply: 3.8, down from 4.9 a year ago

Anything under 3 months typically favors sellers, 3 to 6 months is considered balanced, and over 6 months favors buyers. That puts both counties squarely in balanced territory, trending toward sellers rather than away from them.

That doesn't mean there's no opportunity here. It means the opportunity isn't automatic the way it may be in some of the buyer's markets making national news. A well-priced home in a popular Inland Empire neighborhood can still draw multiple offers. But plenty of individual listings, the ones that have sat too long, gotten a price cut, fallen out of escrow or picked up little interest, still have real room to negotiate. Rather than trying to time the broader market, focus on whether you can find the right home, afford the monthly payment, and negotiate the terms that make this specific purchase work for you.

If you're weighing whether now's the time to make a move, let's look at what's actually happening on the listings you're considering. I can pull the real numbers for any street or neighborhood you're watching.

FAQ

Is the Inland Empire a buyer's market right now? Not by the traditional measure. San Bernardino County has 4.7 months of supply and Riverside County has 3.8, both in balanced territory and trending toward sellers, not away from them. Nationally, buyer's markets are more common, but that trend hasn't fully reached San Bernardino and Riverside counties yet.

How do I know if a specific seller is motivated to negotiate? Look for a home that's sat longer than similar ones nearby, one or more price reductions, a listing that recently fell out of contract, a vacant house, needed repairs, or a listing that's gotten little buyer interest. Any one of these can signal room to negotiate, even in a balanced or tight market.

What can I negotiate besides the purchase price? Closing costs, a mortgage rate buydown, your closing date, extra inspection time, included appliances or furnishings, contingency flexibility, and repair credits are all on the table depending on the seller's priorities.

Should I still try to negotiate if local inventory is tight? Yes. Tight inventory overall doesn't mean every listing is competitive. Individual homes still sit longer, get price cuts and lose buyer interest even in a balanced market, and those are the ones worth pursuing.

How much can I expect a seller to come down on price? It depends entirely on the home, how long it's been listed, and how it compares to recent nearby sales. There's no universal percentage. I can pull comparable sales for a specific address so you're negotiating from real numbers instead of a guess.