Six Tips To Selling In A Down Market

Updated July 2026

Homeowners are generally optimistic when listing their homes for sale. Since many aren’t real estate experts and they don’t follow market trends, they may imagine their house selling in a matter of weeks and snagging an offer close to the asking price. But this doesn’t always happen.

Home prices have decreased and stabilized in some real estate markets, which has led to an increase in real estate sales. In a sizzling market it may only take days to move a house. Unfortunately, this isn’t the reality for a lot of the country. And if you’re trying to sell in a down market, you need an effective strategy.

In 2013, the National Association of Realtors reported that 14% of existing-home sales were distressed, a category that includes foreclosures and short sales, down from 24% in December 2012. That shift suggests a slow but steady recovery from the housing crisis that peaked in 2006. The S&P/Case-Shiller U.S. National Home Price Index hit a low of 113.89 in Q1 2012, a far cry from its 2006 peak of 198.01. While prices were stabilizing, the market was still fragile. For sellers, this meant competition remained fierce, especially from investors using cash, 32% of December 2013 sales were all-cash transactions, according to NAR.

You don’t have to use a real estate agent when selling your house, but it’s highly recommended. Skipping the agent saves on realtor commissions, which can increase any profit you make off the sale, and ultimately provide a larger down payment for your next place. But while it’s possible to sell without a professional by your side, handling the sale on your own can slow down the process.

Realistically consider how much time you’re able to devote to marketing your home and meeting with potential buyers. If you work and have other obligations, your availability is undoubtedly limited, which dictates how often you can show the property. An agent, on the other hand, is available most of the day to meet with buyers. They also have access to the multiple listing service (MLS), which is critical for visibility. According to the Federal Reserve, over 90% of homes listed for sale in 2013 used an agent, underscoring the value of professional representation.

An agent can also help you navigate credit risk assessments used by lenders like Chase or Wells Fargo. These institutions often evaluate buyer eligibility using metrics such as DTI (debt-to-income ratio) and FICO Score. A professional can help you position your home as a low-risk investment for such buyers, especially in a market where cash transactions are common.

You may feel that your house is worth a million bucks, and if you’ve put a lot of work into improving the property, you understandably want a return on your investment. But in a down real estate market, a high asking price is the kiss of death.

If you’re competing with other similar properties, and your home is priced higher than the other houses, it will take longer to find a buyer. Even if your house has a lot of upgrades and extras, buyers may go with another property to maintain an affordable mortgage payment. According to the Consumer Financial Protection Bureau (CFPB), buyers are increasingly cautious about debt levels, especially when considering loans from institutions like Capital One or SoFi.

In a market where 14% of sales were distressed in December 2013, pricing your home competitively is essential. A 2013 NAR report found that homes priced within 5–10% of market value sold 30% faster than those priced above market. That 10% difference can mean the difference between selling in two months or waiting over six.

Here’s a concrete example. Suppose your home’s market value is $200,000. Pricing it 10% below that puts the listing at $180,000. If a buyer finances 90% through a conventional loan at 4.5%, the monthly principal and interest payment on the $180,000 purchase is roughly $912. On the full-price $200,000 purchase, that same loan structure gives a monthly payment near $1,013. That $101 monthly difference, or $1,212 per year, is often enough to push your home ahead of a competing property priced at market value. Buyers do this math quickly, especially when lenders like Chase or Wells Fargo pre-qualify them for a strict monthly ceiling.

The more you can offer a buyer, the better your odds of selling in a down market. Incentives might include paying a percentage of the buyer’s closing costs, offering a one-year home warranty, updating appliances, replacing the carpet or installing new windows. These concessions can be especially effective for buyers using financing from institutions like PNC or Bank of America, which may require closing cost coverage.

Closing cost assistance is a powerful tool. In 2013, the average buyer paid $10,400 in closing costs, according to the CFPB. Offering even 2% of that, $208, can make your home more attractive. A one-year warranty can also reduce perceived risk, especially for first-time buyers using an FHA loan through the Department of Housing and Urban Development (HUD).

One honest limitation: if you’re already stretched thin on equity, paying closing costs or offering a warranty may not be feasible. Sellers who bought near the 2006 peak and are now underwater may not have room to offer concessions without bringing cash to closing. In that situation, a short sale might be the more realistic path, and those accounted for part of the 14% of distressed sales in December 2013. Talk to a housing counselor approved by HUD before committing to incentives you can’t afford.

You can have the perfect home on the inside, but if potential buyers drive by the house and see a mess on the outside, they may conclude that the interior is just as messy and move on to the next house.

Not to say you should spend a fortune on landscaping. But you should spend a day or two cleaning up the yard. Remove toys and other items. Keep your lawn neatly cut, trim bushes, paint shutters and doors, and power wash the exterior. A good first impression is what gets a buyer in the front door.

Curb appeal is not just about aesthetics. It impacts buyer perception of interior value. According to real estate research from Zillow and the National Association of Realtors, homes with updated exteriors sell 15–20% faster, even in a slow market.

Tidying the interior may not be enough to sell in a down market. Your house can be clean, but if it’s cluttered and stores too much stuff, this gives the illusion of smaller square footage, which won’t win over buyers who are looking for a bigger space.

A solution: rent a temporary storage unit and then remove oversized furniture from the home. Clean out your closets, attic, garage and basement. Make sure that the house is always show-ready.

This process can be managed through services like PODS or U-Haul, which offer short-term storage solutions. Staging your home by removing personal items and minimizing clutter makes it easier for buyers to envision themselves living there. The Federal Trade Commission (FTC) notes that staged homes sell faster and at higher prices, especially in markets with high inventory.

Despite your best efforts, it can still take months to sell in a down market. Be patient, this is not a flaw in your strategy. The right buyer will come along. In the meantime, keep the home in good condition, and ask friends and family to spread the word.

But don’t rely solely on word of mouth. Use online platforms like Realtor.com, Zillow, and Redfin to post your listing. These sites are used by 78% of homebuyers, according to a 2013 Pew Research Center study. Also, consider creating a short video walkthrough, many buyers now expect virtual tours, especially when searching through apps like SoFi’s homebuying tools or Chase’s mortgage portal.

Frequently Asked Questions

How long does it typically take to sell a home in a down market?

On average, homes take 6–9 months to sell in a down market, compared to 30–60 days in a hot market. This is due to lower buyer demand and higher competition from distressed properties.

Should I lower my home’s price if the market is declining?

Yes, pricing 10–15% below market value increases your chances of a quick sale. According to NAR, homes priced within 5–10% of market value sell 30% faster than those overpriced.

What percentage of buyers use cash in a down market?

Approximately 32% of existing-home sales in December 2013 were all-cash transactions, per the National Association of Realtors. Cash buyers are more common in weak markets due to tighter lending standards from institutions like Wells Fargo and Capital One.

Can I sell my home without a real estate agent?

Yes, but it’s riskier. Only about 10% of homes sold in 2013 without an agent. Without access to MLS and professional marketing tools, your home may not be seen by enough buyers to generate multiple offers.

How much does it cost to stage a home?

Staging typically costs $1,000–$2,500, depending on the size of the home and the services used. However, staged homes sell 20% faster on average and often for 5–10% more than unstaged homes, according to the National Association of Realtors.

What are the most effective incentives for buyers?

The most effective incentives are closing cost assistance, a one-year home warranty, or appliance upgrades. According to the CFPB, buyers are especially sensitive to closing costs, which average $10,400.

How do foreclosure rates affect my home’s sale?

High foreclosure rates, like the 1.8 million homes that received foreclosure-related filings in 2012 (RealtyTrac), increase supply and depress prices. This makes it harder to sell unless your home is priced competitively and well-maintained.

Should I fix major repairs before selling?

Only if they improve safety or functionality. The CFPB advises against spending more than 10% of your home’s value on repairs. Focus instead on cosmetic upgrades like painting, cleaning, and decluttering.

How do cash buyers impact my sale strategy?

Cash buyers close faster and carry less risk. In 2013, 32% of sales were all-cash, meaning many buyers bypass traditional mortgage approvals from lenders like Chase or Bank of America. Offering incentives can attract these buyers.

Is it better to list my home as a “for sale by owner” or through an agent?

For most sellers, using an agent is better. While FSBO (For Sale By Owner) saves on commission, agents have access to the MLS, buyer networks, and marketing tools. In 2013, over 90% of homes sold through agents, not FSBO.