{"id":12048,"date":"2025-03-20T04:14:17","date_gmt":"2025-03-20T04:14:17","guid":{"rendered":"https:\/\/finderica.com\/?p=12048"},"modified":"2025-03-20T04:14:17","modified_gmt":"2025-03-20T04:14:17","slug":"how-to-navigate-a-cooler-housing-market","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=12048","title":{"rendered":"How to Navigate a Cooler Housing Market"},"content":{"rendered":"
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Let\u2019s talk home selling tips. While still-high mortgage rates will undoubtedly make prospective home buyers feel stretched, there\u2019s still plenty of hope for home sellers in 2025!<\/p>\n

Sure, the lofty asking prices of 2022 and early 2023 have perhaps come down, but if you pan out a bit, property values remain well above pre-pandemic levels. In many metros, still up 50%!<\/p>\n

So while you may have missed your chance to sell at the absolute top, most home sellers today are still making out pretty darn well.<\/p>\n

Regardless of what happens to the economy this year, chances are those who are planning to buy a home will, assuming they can find one that suits their individual needs.<\/p>\n

The housing inventory shortage<\/strong> isn\u2019t as pronounced, but it remains an issue in markets in the Midwest and Northeast.<\/p>\n

And home buyer appetite is still relatively healthy, so sellers who list right should fare just fine in 2025.<\/p>\n

Let\u2019s talk about some potential home selling tips to help you get top dollar if you do decide to list.<\/p>\n

1. It\u2019s Finally Becoming a Buyer\u2019s Market Nationwide
<\/span><\/h2>\n

\"2025<\/p>\n

If you happen to be selling a property in 2025, conditions might be a little different this year than in past years. And not in a good way.<\/p>\n

The main culprit, and really only culprit, has been mortgage rates. The 30-year fixed climbed from the high-2% range in early 2022 to over 8% in late 2023, before coming down some over the past year and change.<\/p>\n

But it was one of the worst (if not the worst) 24-month periods on record for interest rates and home buyers haven\u2019t forgot about those 2-3% rates.<\/p>\n

Rates have since settled down into the high-6% to low-7% range, but the damage is done. The seller\u2019s market of the past decade is now becoming a buyer\u2019s market.<\/p>\n

Despite that dramatic increase, home prices are still forecast to rise 3.6% in 2025 (from January 2025 to January 2026), per CoreLogic<\/a>.<\/p>\n

This is actually HIGHER than the 3.3% growth in prices from January 2024 to January 2025.<\/p>\n

Similar to talk of the low mortgage rates going away, which finally did, we were told year after year that the seller\u2019s market was coming to an end. And it finally did, at least according to Redfin<\/a>.<\/p>\n

The company, which was recently bought by Rocket, said it has become a buyer\u2019s market in early 2025 thanks to rising for-sale inventory, which hit 3.7 months in January.<\/p>\n

That\u2019s the highest total since 2019, and they note that four to six months of supply tends to favor buyers.<\/p>\n

\"for<\/p>\n

What this means is increased inventory, lower listing prices, fewer bidding wars, more seller concessions, and increased desperation from home sellers willing to drop their prices.<\/p>\n

This will be especially true if the the 30-year fixed ticks higher and heads back above 7% as a buyer won\u2019t want an elevated purchase price AND an inflated mortgage rate. Heck, they may not be able to afford it.<\/p>\n

In other words, expect fewer offers, more days on the market before an offer arrives, and more demands (not demand) from the home buyer<\/strong>.<\/p>\n

You need to be more reasonable this year and think about listing below a key pricing threshold to drive interest and get your property to achieve \u201cHot Home\u201d status.<\/p>\n

2. Know Your Buyer Well and Appeal to Them
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Along those same lines, if you\u2019re selling a home in 2025 you\u2019ll want to ensure it is well-maintained and on point design-wise.<\/p>\n

The types of homes you see sitting on the market these days are consistently not updated<\/strong> and often not priced to take that into account.<\/p>\n

Sure, home buyers are still hungry, but they know a junker when they see one and those can and will still sit. Don\u2019t get too arrogant here.<\/p>\n

If there are doilies everywhere and puffy curtains on all the windows and the house looks straight out of a 1990s sitcom, younger buyers (namely Millennials and Gen Z) may not be able to look beyond that.<\/p>\n

In my mind, if these properties simply got a fresh coat of paint<\/strong> and underwent some minor tweaks, perhaps a little modern staging too, they could command the price being requested.<\/p>\n

Heck, even the addition of a Nest thermostat and other smart home gadgets can get otherwise disinterested buyers excited in a hurry.<\/p>\n

Same goes for little touches like new screwless wall plates, faucets, knobs, and other finishes that can make old fixtures look new. Cheap but very effective.<\/p>\n

Of course, it will all depend on your unique property and individual housing market.<\/p>\n

Properties in the first-time home buyer category will likely remain hot, regardless of whether they\u2019re updated or not because there will always be more eligible buyers in that category based on price alone.<\/p>\n

More expensive homes may sit longer unless the seller (and agent) really take the time to determine what a prospective buyer looks like in their area and caters to that.<\/p>\n

Still, it could still make sense to make these small adjustments to garner even more interest and a higher final selling price. The ROI could be well worth it.<\/p>\n

While Zillow noted that backyards were big in 2024, the word for 2025 appears to be \u201ccozy,\u201d<\/strong> so if you\u2019ve got a smaller property, it\u2019s okay. This is being driven by lower budgets<\/a>.<\/p>\n

Smaller homes are cheaper to maintain, to heat, to cool, and to furnish.<\/p>\n

But if you\u2019ve got a big backyard, certainly highlight it and even lead with it in your listing\/photos.<\/p>\n

Home buyers are also more into \u201ccolor-saturated rooms\u201d (look it up), so maybe ditch the whites and grays. Find out what else is on-trend in your area and bring it.<\/p>\n

3. Photos and Staging Matter, More Than Ever
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Real estate is very emotional, whether prices are high or low. While economists talk numbers, home buyers and sellers lead with their hearts<\/strong>.<\/p>\n

One of the most important things you can get right (or very wrong) is photographs. Ultimately, unless you or your real estate agent is a photographer by trade or serious hobby, you\u2019ll need to hire a pro.<\/p>\n

The good news is it should be a small price to pay for a very meaningful return. After all, buyers now peruse listings online or via their smartphone, and pictures pretty much take the lead.<\/p>\n

An appealing cover shot will stand out in the crowd. A professional photo taken with the right camera, right lighting, and right angle\/composition can work wonders.<\/p>\n

Conversely, a poorly-lit photo that\u2019s crooked or out of focus (and complete with a timestamp) could sink your listing even if the house itself is great.<\/p>\n

One actionable tip is to make your best photo the featured one<\/strong>, even if it\u2019s the kitchen. It doesn\u2019t need to be the front of the house. It could be a sitting room or family room too.<\/p>\n

If the outside of your home is ugly, use an interior shot that is more appealing.<\/p>\n

Really, whatever pops the most. Because some prospective buyers may not bother clicking through to see the rest if they don\u2019t like the first.<\/p>\n

The same goes for home staging, which can make an enormous impact. It\u2019s all about perception. Two identical houses can look completely foreign thanks to staging alone. Or simple decluttering. Or even a simple cleaning!<\/p>\n

With the real estate market a bit cooler these days, the seemingly small details matter more than ever.<\/p>\n

4. Steer Clear of Discount iBuyers<\/span><\/h2>\n

Because it remains a great<\/del> good<\/del> decent time to sell<\/strong>, there\u2019s really no sense in using a discount iBuyer like Opendoor, or the now defunct Redfin Now or Zillow Offers. You know, the companies that can apparently sell your home in a week or less.<\/p>\n

While the housing market isn\u2019t as strong, why resort to a veritable fire sale? Sure, it might take a little longer to sell via traditional means, but it can be well worth your time and energy to do so.<\/p>\n

You shouldn\u2019t feel desperate in today\u2019s climate, though I suppose there are always going to be situations that might warrant a very fast home sale, such as if you\u2019re also buying or relocating for work.<\/p>\n

In those cases, you might have to make some concessions, which is understandable, but still give a traditional listing a shot.<\/p>\n

If you can, the conventional route should be the way to sell a home in 2025, even if you have to pay a real estate agent a commission.<\/p>\n

As noted, just be more mindful of your listing (and list price) and be willing to negotiate with the home buyer. In fact, expect to negotiate. Not only on price, but on their buyer agent fee too!<\/strong><\/p>\n

5. But a Discount Real Estate Brokerage Might Work<\/span><\/h2>\n

On the other hand, it might be worth looking into a discount real estate brokerage<\/strong>, those that charge less than the typical 2.5-3% listing fee.<\/p>\n

There are many out there that charge a discounted rate, flat fee, or even nothing at all, with the latter requiring that you use them on your next real estate transaction.<\/p>\n

This is always a controversial topic because full-service real estate agents will argue that they provide more for very little cost that is often recouped via a higher sales price.<\/p>\n

In other words, a full-service agent may sell your home for more money and their higher commission is essentially absorbed, but whether that actually happens isn\u2019t guaranteed.<\/p>\n

Just know what you\u2019re getting and if you do decide to go it semi-alone \u2013 you\u2019ve got to know what you\u2019re doing and know your property and real estate market really well.<\/p>\n

Home sales are forecast to remain low in 2025 (as they did in 2024) with only around 4.2 million existing homes expected to sell in 2025, per Fannie Mae<\/a>, so you can and should negotiate with your real estate agent. They need the business!<\/p>\n

Especially in light of the ongoing real estate agent commission lawsuits, which are boosting pricing transparency.<\/p>\n

6. Consider Pricing Your Listing Below a Key Threshold<\/span><\/h2>\n

This should go without saying, but I constantly see homes listed above certain psychological pricing tiers<\/strong>.<\/p>\n

For example, should you list a property at $405,000 or $399,000? While it\u2019s perhaps debatable, you\u2019ll probably get more eyeballs on your listing if you list just below $400,000.<\/p>\n

This is partially to do with how filters work on popular home listing websites and apps, and partly to do with how the human mind works.<\/p>\n

At the end of the day, the final sales price could go higher, even if you list lower.<\/p>\n

But you may never get your property in front of the users who set their maximum purchase price filter to $400,000 on Redfin or Zillow.<\/p>\n

Also note that buyers are keenly aware of things like Zestimates and Redfin Estimates, whether accurate or not. So listing below these numbers might also boost buyer appeal.<\/p>\n

Just be sure you get enough interest to sell above list if you desire that higher sale\u2019s price and are attempting to lure in frugal buyers.<\/p>\n

You could argue that listing low is risky, but the same can be said about listing high, then having to reduce the price after the fact.<\/p>\n

Tip:<\/span> If you hold an assumable mortgage, highlight that in your listing too! A company called Roam Mortgage is trying to simplify the process so it becomes easier to navigate.<\/p>\n

7. Vet Your Real Estate Agent Hard and Have a Plan
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If and when you decide to list your home for sale, vet your real estate agent and ask them what the game plan is<\/strong>.<\/p>\n

While it was a no-brainer to list and get top dollar in 2021\/2022, those days are over. As such, you need a solid plan.<\/p>\n

Always be frugal, and always pretend every dollar counts, even if you feel flush with cash thanks to surging home prices.<\/p>\n

Your agent should know what price points work for certain neighborhoods and layouts, and list accordingly.<\/p>\n

In fact, you might want to hire a local real estate agent who works almost exclusively in your neighborhood as the details will matter a lot more in 2025.<\/p>\n

You\u2019ll want to know the exact approach the real estate agent plans on taking to get your property sold quickly (if you want it sold fast) and for an optimal price.<\/p>\n

Are they going to list low and hope it becomes a \u201cHot Home\u201d on Redfin, or hold their ground at a higher price point and be patient?<\/p>\n

Also talk concessions \u2013 what can they throw in to lure in a buyer?\u00a0 Maybe a mortgage buydown. If so, highlight this in the listing!<\/p>\n

You should discuss all these particulars early on before you list and have regrets. Getting these details right matters even more because of how the real estate market is at the moment.<\/p>\n

8. Find Out How Home Prices Will Fare in Your City<\/span><\/h2>\n

\"cooling<\/p>\n

It\u2019s one thing to work with a good real estate agent, and another to be an informed home seller. Do your own research<\/strong> on your local market to see how home prices will fare in 2025.<\/p>\n

Take a look at your city and metro too, along with national home price projections. Get a feel for the market temperature so you can set a realistic listing price with your agent.<\/p>\n

Don\u2019t just take their word for it. There are plenty of websites that offer up free home price projections, including the usual suspects like Zillow and Redfin, along with state Realtor groups, NAR, and private companies like CoreLogic and First American.<\/p>\n

The cities listed above are on CoreLogic\u2019s watch list as likely going negative home price-wise in 2025.<\/p>\n

Conversely, places like Syracuse, NY, Bridgeport, CT, and Rochester, NY are expected to surge close to another 10% this year.<\/p>\n

Pay attention to the news, but also keep an eye on recent comparable sales in your neighborhood<\/strong>.<\/p>\n

Fire up Redfin to see what sold nearby your property in the past few months. Check out how long it was listed, what it sold for versus the list price, and how it compares to your home size, condition, and feature-wise.<\/p>\n

You might even gain some valuable insights into what your home lacks that can be easily remedied before throwing it on the market.<\/p>\n

If a nearby home sale did particularly well, determine how you can emulate it or even beat it!<\/p>\n

While the 2025 housing market isn\u2019t forecast to be as strong as preceding years, there are markets that will fare much better than others.<\/p>\n

More expensive metros may see cooler demand, especially if mortgage rates remain elevated.<\/p>\n

9. Make Your For-Sale Listing Exclusive<\/span><\/h2>\n

I\u2019ve seen this done \u2013 and it worked beautifully. The real estate agent held a single open house<\/strong>. Just one. The property was packed that day. It felt like a circus and created a lot of buzz.<\/p>\n

If you\u2019re a prospective buyer and you see other potential buyers inside the very home you\u2019re thinking about bidding on, emotions run high. And fear of missing out runs even higher.<\/p>\n

It can be a successful strategy if the property is in a desirable area and meticulously updated. The one example I mentioned ended up going under contract in a few days and went something like $100,000 over asking.<\/p>\n

In reality, the property wasn\u2019t all that amazing or unique, but the agent created a feeling of exclusivity.<\/p>\n

The same effect can be delivered by deferring any showings to a particular date and time, with only qualified buyers who are represented by agents allowed to view the property.<\/p>\n

The goal is overlapping buyer traffic and hopefully multiple offers all in the same small window, which could result in a bidding war.<\/p>\n

While they watch others tour the home, they may become increasingly anxious about the competition, even if none of those other buyers actually express any interest.<\/p>\n

If combined with a relatively low list price, you could get a nice response and your choice of buyer.<\/p>\n

10. Wait for the Right Time of Year to Sell Your Home
<\/span><\/h2>\n

\"2025<\/p>\n

Another important consideration is timing. We\u2019ve got another 290 days or so to list properties in 2025. Not all days are created equal!<\/p>\n

Conventional wisdom says to list a home in spring if you want to fetch the highest sales price for your home. Day of week can also matter.<\/p>\n

However, this can and will vary based on your market and property type, with homes fetching higher prices in Tampa and Phoenix during the winter (hint: because it\u2019s hot during spring\/summer).<\/p>\n

Zillow has a handy feature for sellers on the owner view of their website.<\/p>\n

Once logged in, you can scroll down to \u201cBest Time to List<\/strong>\u201d to find out when they think you should sell, based on their machine learning and data crunching.<\/p>\n

It will tell you which month has been best historically based on seasonal patterns of similar properties.<\/p>\n

Of course, if you\u2019re also buying a home at the same time, you\u2019ll have to factor that in too, as the best time to buy a home might be in late summer.<\/p>\n

If in doubt, selling a home in spring is typically the best in terms of buyer traffic and fetching a high sales price.<\/p>\n

It\u2019s also generally good to list on a Thursday, assuming you really want to fine-tune things. With less demand in 2025, it\u2019s not a bad idea to do all you can to improve your odds.<\/p>\n

11. Qualify Your Home Buyers Before They Visit
<\/span><\/h2>\n

Even though the housing market has cooled, you still shouldn\u2019t want randoms or unqualified buyers in your home.<\/p>\n

While your real estate agent should be on top it, certainly make sure prospective buyers are fully vetted before they arrive<\/strong>.<\/p>\n

This means absolutely no lookie loos of any kind, and a verified pre-approval letter in hand. Ideally, one that has actually been underwritten by a mortgage lender.<\/p>\n

Sure, you want as many potential buyers as possible, but you also need to limit the foot traffic to serious and qualified buyers only.<\/p>\n

While you\u2019re at it, take a hard look at their pre-approval letter beforehand to see how strong of an applicant they are.<\/p>\n

Can they put down 20% on the home purchase, or is a 3% down payment all they can muster?<\/p>\n

It might matter more in 2025 if the appraised value comes in low, requiring more funds from the buyer.<\/p>\n

This situation isn\u2019t uncommon, and could become a lot more common. It may require the buyer to increase their down payment to make the mortgage financing work.<\/p>\n

Those with only a small amount of assets may need to walk away in these cases, which can hurt your home\u2019s marketability.<\/p>\n

While a cash offer might be tempting, a strong borrower who needs a home loan to get the deal done can be nearly as good. And should result in a higher sales price.<\/p>\n

Pay attention to their FICO scores, income\/employment, and assets in the bank to determine their strength.<\/p>\n

12. Be Prepared for Your Next Home Purchase Too
<\/span><\/h2>\n

A common, yet tricky move<\/em> at the moment, is selling and buying a property concurrently<\/strong>. It can be especially difficult thanks to the lack of quality inventory that continues to plague the market.<\/p>\n

And because mortgage lenders aren\u2019t as liberal as they once were, getting a home loan, or floating two at the same time, can be a deal breaker.<\/p>\n

One thing I\u2019ve seen people do recently is sell before buying a replacement home. This makes their property a little hotter because there are fewer contingencies.<\/p>\n

But it also means finding a new house quickly, assuming their temporary digs aren\u2019t ideal.<\/p>\n

[When should you start looking for a house?]<\/p>\n

Another alternative is to ask for a rent-back from the buyer where they allow you to stay for a month or two until you find a new home to purchase.<\/p>\n

Of course, selling contingent on finding a replacement isn\u2019t out of the question if the property\/market is hot enough, but most will try to avoid it.<\/p>\n

What you can also do is buy before you sell, then recast the mortgage by paying it down using proceeds from the sale of the old property.<\/p>\n

The property aside, make sure you\u2019re pre-approved for a mortgage and ready to go on the financing front yourself.<\/p>\n

You should have a good idea of what the sales proceeds will look like and how much you\u2019ll be able to afford on the next purchase.<\/p>\n

Begin looking at homes immediately as if your property has already been sold and you\u2019re in panic-mode.<\/p>\n

In summary, I believe 2025 will be a decent year for home sellers in most markets<\/strong>, though nothing like 2021 or early 2022. But those years were ridiculous historically.<\/p>\n

However, some markets will experience price declines and inventory will rise as affordability weighs on buyers.<\/p>\n

If you\u2019re a seller, consider zooming out to see how much you stand to make if you sell, instead of thinking it\u2019s no longer top dollar. Chances are you\u2019ll still make out pretty well if you bought pre-pandemic.<\/p>\n

If anything, there\u2019s more of an equilibrium in the housing market, which is a good thing overall for long-term stability.<\/p>\n

In summary, home prices are still projected to rise about 3.5% this year and if mortgage rates fall back to more reasonable levels in 2025, increased affordability may allow for stronger listing prices.<\/p>\n

Sure, it\u2019s not an absolute guarantee that your home will sell for top dollar anymore, but if you do your homework, focus on the seemingly small details, and take the time to do things right, it should pay off big time.<\/p>\n

Read more:<\/span> 11 home buying tips for today\u2019s cooling housing market.<\/p>\n

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\"Colin<\/div>\n
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Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.<\/p>\n<\/div>\n<\/section>\n

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\"Colin<\/div>\n
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Latest posts by Colin Robertson (see all)<\/span><\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n