More Sellers Are Cutting Prices: Is Buyer Negotiating Power Coming Back?

Price reductions reached a four-year high in September as inventory increased and mortgage rates stayed elevated. Here’s what buyers and sellers in West Michigan should know.

The housing market is giving buyers something they haven’t had much of in recent years: more room to negotiate.

According to Realtor.com’s September 2026 housing report, 20.8% of active listings had a price reduction, the highest share in nearly four years. At the same time, active inventory was up 5.4% compared with a year earlier, giving buyers more choices than they had last fall. Realtor

That doesn’t mean every market has suddenly turned into a buyer’s market. But it does suggest the balance between buyers and sellers is becoming more nuanced.

For West Michigan buyers and sellers, that creates a different set of opportunities—and a different set of decisions.

More Than 1 in 5 Listings Had a Price Cut

The biggest headline from September is the increase in price reductions.

Realtor.com reported that 20.8% of active listings received a price cut during September, up from the previous month and from September 2025. That was the highest monthly share since October 2022. Realtor

Price reductions can happen for several reasons.

Some sellers may have entered the market with an asking price that buyers were unwilling to accept. Others may be competing with a growing number of available homes. And some sellers who originally hoped to move during the summer may be becoming more motivated as fall progresses.

A price reduction does not automatically mean a property is a bargain.

But it can be a signal worth investigating.

Buyers Have More Homes to Choose From

Another important change is inventory.

Nationally, active listings increased 5.4% year over year in September, according to Realtor.com. Realtor

More inventory gives buyers something extremely valuable: options.

When there are only a handful of suitable homes available, buyers may feel pressure to move quickly or compromise on features.

When there are more choices, buyers can compare properties more carefully.

That may mean comparing:

• Location
• Condition
• Updates
• Days on market
• Previous price reductions
• Property taxes
• Association fees
• Waterfront access
• Lot size
• Seller concessions

For someone shopping in West Michigan, this can be especially important because property types vary dramatically from one area to another.

A condo in downtown Holland is not competing with the same buyer pool as a Lake Michigan home in Saugatuck or a home on acreage outside Fennville.

Higher Mortgage Rates Are Part of the Story

There is also a major reason buyers are gaining some leverage: financing has become more expensive.

Freddie Mac reported that the average 30-year fixed mortgage rate reached 7.28% on October 1, up from 7.03% the previous week. It was the largest weekly increase in four years and the highest level in nearly three years. Reuters

Higher rates reduce purchasing power.

When buyers can afford less each month, sellers may have to adjust if their home is not generating enough interest at the original price.

This is one reason the current market can feel contradictory.

Buyers may have more negotiating power on the purchase price, but their monthly mortgage payment may still be higher because of interest rates.

That makes it important to look at the entire financial picture rather than focusing only on the list price.

Does This Mean Buyers Should Automatically Offer Less?

No.

The amount of leverage a buyer has depends heavily on the individual property.

A home that was listed yesterday and already has several interested buyers is very different from one that has been sitting on the market for 90 days and has already had two price reductions.

Before deciding how aggressive to be with an offer, buyers should look at several indicators:

Days on market.
Has the property just been listed, or has it been sitting?

Price history.
Has the seller already reduced the price?

Comparable sales.
What have similar homes actually sold for?

Competition.
Are there other buyers interested?

Condition.
Will the property need significant repairs or updating?

Seller motivation.
Does the seller have a particular timeline or reason for moving?

Those factors are often more useful than simply assuming every seller is willing to negotiate.

Seller Concessions May Matter Just as Much as Price

Negotiation does not always have to mean reducing the purchase price.

Depending on the situation, a buyer might negotiate for:

• Closing-cost assistance
• Mortgage-rate buydowns
• Repairs
• Credits at closing
• Appliances or furnishings
• Flexible possession
• Inspection-related concessions

In some cases, those terms may have more value to the buyer than a relatively small price reduction.

For example, a seller credit that helps lower a buyer’s interest rate could have a meaningful impact on the monthly payment.

What This Means for West Michigan Buyers

The national data is useful, but West Michigan is not one single housing market.

Conditions can vary significantly between Grand Rapids, Holland, Saugatuck, Douglas, Grand Haven, South Haven, Muskegon, and smaller surrounding communities.

The same is true by property type.

Entry-level homes may still attract strong competition.

Luxury properties may take longer to sell.

Waterfront homes can behave very differently depending on frontage, views, bluff conditions, beach access, and location.

Vacant land has its own set of considerations.

That means buyers should look for negotiating opportunities, but they should also avoid assuming every seller is desperate to make a deal.

The goal is to understand where the leverage actually exists.

What This Means for Sellers

The increase in price cuts also sends an important message to sellers.

Pricing correctly at the beginning of a listing may be more important now than it was when inventory was extremely limited.

Buyers have access to more information and more alternatives.

If a property is priced significantly above comparable homes, buyers may simply move on rather than submitting an offer.

A home that sits too long can eventually require a larger price adjustment than it might have needed if it had been positioned correctly from the beginning.

That does not mean sellers should automatically price low.

It means pricing should be based on current comparable sales, competing listings, property condition, location, and buyer activity—not simply on what another property sold for during a hotter market.

Is the Market Becoming a Buyer’s Market?

Not necessarily.

The current data points to more buyer leverage, but that is different from saying buyers control every transaction.

Mortgage rates remain high, affordability is difficult, and market conditions vary widely across the country and across West Michigan. Reuters

Some properties will still sell quickly.

Others may need multiple price reductions.

Some buyers will successfully negotiate major concessions.

Others may still encounter competition.

The market is becoming more property-specific.

That makes local data and individual property analysis increasingly important.

The Bottom Line

The September housing data shows a meaningful shift.

More than 1 in 5 active listings received a price reduction, inventory increased compared with last year, and higher mortgage rates continue to put pressure on affordability. Realtor

For buyers, that may create more opportunities to negotiate than they had during the most competitive years of the market.

For sellers, it means pricing and presentation matter even more.

The best strategy on either side is not to assume the market has completely flipped.

It is to understand the specific property, the local competition, and the leverage available in that particular transaction.