London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

Desperate US home sellers are basically paying buyers to purchase their homes

Desperate US home sellers are basically paying buyers to purchase their homes

Sellers want to off-load properties so badly that they're paying down buyers' mortgage rates and offering money for repairs at record levels.

Sales of previously owned homes have fallen for 10 consecutive months. It's making some home sellers so desperate they're offering buyers cash to purchase their properties. 

It all comes down to the Federal Reserve's ongoing fight against surging inflation, which has effectively put an end to pandemic-era mortgage deals. With higher monthly mortgage payments and near-record-high home prices, fewer Americans are purchasing homes. And in a stark contrast to the housing market of 2020, sellers are losing their grip on the US real-estate market — and it's costing them big. 

Indeed, data from the real-estate brokerage Redfin indicated that in the fourth quarter of 2022, home sellers gave concessions — such as money for home repairs and mortgage-rate buydowns, a technique where a seller pays a fee at closing to secure a lower mortgage rate for a buyer — to buyers in 41.9% of home sales. 

That's the highest rate Redfin has ever recorded over a three-month period.

"Buyers are asking sellers for things that were unheard of during the past few years," Van Welborn, a Redfin real-estate agent based in Phoenix, said in the report. "They're feeling empowered, partly because their offer is often the only one, and partly because they know sellers have built up so much equity during the pandemic that they can afford to dole out sizable concessions."

With fewer deals taking place, home prices are falling in cities across the country — even in previously hot markets like Austin and Phoenix. It's causing some homeowners to do whatever they can to sell their homes quickly.


Buyers are seeing more discounts and reclaiming their power


Buyers are also receiving more price cuts. According to Redfin, a record 22% of home sales Redfin agents made in the fourth quarter of 2022 included both a concession and a final-sale deduction. Additionally, a record 19% included both a concession and a listing-price cut while the home was still on the market, and a record 11% included all three incentives.

Brian Lewis, a housing expert and broker with the real-estate firm Compass, said that in cities like Los Angeles and Chicago a, general lack of homes for sale is also helping shift the market in favor of buyers. 

"Here's the thing about America, we don't have inventory," Lewis said in an interview on Fox on Thursday. "In New York City, it's tight. In Richmond, Virginia, it's tight. In some areas of Chicago, it's tight. My Los Angeles offices are saying that it's tight out there, too." 

When home prices and mortgage rates are both high, buyers are reluctant to dive in. That means sellers need to compete for the few that are willing to make offers under such conditions. Lewis said these dynamics have made it unmistakable that "homebuyers have way more power" than sellers. 

"It took a while, but seller expectations are coming back down to earth," Welborn said. "Sellers realize they're not going to get $80,000 over the asking price like their neighbor did last year."

Comments

Oh ya 3 year ago
Its not just housing crashing it is everything, car sales and thousands losing their jobs. It is a recession or worse a depression that is happening. 250.000 people who bought homes last year are now underwater on the mortgage. Get out of debt and stock up on food because the prices are raising quickly

Newsletter

Related Articles

0:00
0:00
Close
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
×