For homebuyers and investors, understanding where sellers are most willing to negotiate can significantly impact affordability and purchasing power. With mortgage rates remaining elevated and inventory levels fluctuating across the country, many sellers are responding to slower demand by reducing listing prices.

In states where price reductions are most common, buyers may find greater leverage, more options, and improved chances of securing favorable deals.

The study by Tacoma-based real estate solutions company Kind House Buyers analyzed Realtor.com listing data to determine which U.S. states have the largest proportion of homes with reduced prices. Researchers evaluated total active properties for sale and compared them with listings that had undergone at least one price reduction. Each state was ranked based on the percentage of price-reduced homes relative to total listings, highlighting markets where sellers are most aggressively adjusting prices.

Arizona ranks first, with 16.38% of real estate listings showing reduced prices. In the Grand Canyon State, 9,966 out of 60,834 homes currently for sale have experienced price cuts, placing Arizona at the top of the ranking.

Indiana ranks second, with 16.05% of real estate listings showing reduced prices. Out of 32,163 homes currently for sale in the Hoosier State, 5,161 have seen price reductions, signaling increased seller flexibility.

Florida ranks third, with 14.95% of real estate listings showing reduced prices. In the Sunshine State, 43,599 out of 291,723 homes currently on the market have experienced price cuts, reflecting shifting seller expectations in a high-inventory market.

Maryland ranks fourth, with 14.75% of real estate listings showing reduced prices. Of the state’s 22,665 homes currently for sale, 3,343 have undergone price reductions, indicating growing buyer leverage across the market.

Ohio ranks fifth, with 14.65% of real estate listings showing reduced prices. In the Buckeye State, 6,277 out of 42,841 homes currently listed have lowered their asking prices, highlighting increased price adjustments by sellers.

Commenting on the findings, a spokesperson from Kind House Buyers said:

“Price reductions are one of the clearest signals of changing market dynamics. When a high percentage of sellers are cutting prices, it often means buyers have more negotiating power and time on their side.

“In many of these states, sellers are adjusting to higher borrowing costs and slower sales activity. For buyers who are prepared and well-informed, these markets can offer meaningful opportunities to secure better deals than were possible just a year or two ago.”

3 Steps to Navigate Price-Reduction Housing Markets

The Current State of Real Estate Market Trends

Before You Choose a State:

Prioritize markets in the 14-16% price-reduction range, where seller motivation creates systemic buyer advantages.
Investigate whether inventory is rising or falling – growing inventory plus high reduction rates signals deepening buyer power.
Track how long reduced-price homes stay on market; extended days-on-market indicates room for aggressive negotiation.

When Selecting a Home:

Target properties with multiple price reductions, which typically indicate highly motivated or distressed sellers.
Calculate the total percentage reduction from original list price – cuts exceeding 10% often signal desperation.
Research comparable sales rather than active listings to understand true market value versus inflated asks.

When Making an Offer:

Use specific price-reduction data as negotiation evidence: “43% of listings in this ZIP code have reduced prices in the past 60 days”.
Request seller concessions on closing costs, rate buydowns, or repairs in addition to price cuts.
Structure offers with favorable contingencies since desperate sellers will accept terms they’d have rejected a year ago.

Table:

Rank	U.S. State	% of Homes With Price Reductions
1	Arizona	16.38%
2	Indiana	16.05%
3	Florida	14.95%
4	Maryland	14.75%
5	Ohio	14.65%
6	Montana	14.65%
7	South Carolina	14.54%
8	Massachusetts	14.29%
9	Nevada	14.15%
10	Colorado	13.18%

The study was conducted by Kind House Buyers, a Tacoma-based home-buying company that helps homeowners sell quickly and with ease. While they specialize in fast, cash purchases, they also offer alternative solutions when a cash offer isn’t the right fit.

Methodology

Researchers analyzed active Realtor.com listings across all 50 U.S. states, identifying total properties for sale and listings marked with at least one price reduction. The percentage of price-reduced homes was calculated by dividing the number of reduced-price listings by total active listings for each state. States were ranked based on this percentage to identify markets where sellers are most frequently lowering asking prices – a key indicator of shifting negotiating power, cooling demand, and emerging buyer opportunities in the current real estate cycle.

Data Sources