If you’re thinking about buying or selling a home in 2025, there’s an important trend to watch: buyers and sellers have different expectations when it comes to price.
A recent survey from Clever Real Estate highlights a notable disconnect — buyers are budgeting around $386,507 on average, while sellers are hoping for $413,976. That’s a $27,000 difference in price expectations.
So, what’s causing this pricing gap, and how might it affect your plans? Let’s take a closer look at the key factors shaping this divide and how you can navigate it.
What’s Fueling the Pricing Gap?
This $27,000 divide is rooted in the different ways buyers and sellers see the market. Here’s what’s causing the disconnect.
1. Sellers Are Riding High on Confidence
After years of rapidly rising home prices, sellers are entering 2025 with high expectations. Nearly 74% of sellers believe their home will sell at or above the asking price. However, as the market stabilizes, this confidence doesn’t always match reality. This mindset can result in higher listing prices that may not align with buyer expectations.
2. Buyers Are Feeling the Squeeze
On the other hand, buyers are grappling with tighter budgets due to higher mortgage rates and affordability challenges. Roughly 68% of buyers worry that rising home prices will delay their home purchase.
With limited room to stretch their budgets, buyers may struggle to meet seller demands, leading to longer negotiations or missed deals altogether.
3. The Market’s Changing Landscape
Both buyers and sellers expect strong demand in 2025 — 87% agree on this. However, housing economists predict smaller price increases compared to previous years. This shift benefits buyers looking for stability but may force sellers to adjust their pricing strategies to stay competitive.
Strategies for Buyers to Bridge the Gap
If you’re a buyer facing this $27,000 divide, it may seem daunting, but there are ways to work around it.
1. Do Your Research
Familiarize yourself with local market trends and recent sales in your area. Knowing what homes are actually selling for can prepare you to make competitive offers.
2. Be Ready to Negotiate
While you may not want to meet a seller’s full asking price, flexibility on other terms — like move-in dates — can make your offer more appealing.
3. Seize Market Opportunities
As price growth slows, more sellers may be willing to negotiate. If you’re ready to act quickly, you might secure a better deal with less competition from other buyers.
How Sellers Can Close the Gap With Buyers
If you’re selling a home in 2025, you’ll want to be strategic about pricing and presentation. Here’s how to attract serious buyers and avoid long delays.
1. Price it Smart from the Start
Set a price that reflects market conditions. Work with a local agent to make sure you’re not overpricing your home, as 49% of real estate agents believe that proper pricing is the top factor in selling quickly.
2. Make Your Home Stand Out
Professional photography and home staging can make a big difference. The more “move-in ready” your home appears, the more likely you’ll get offers close to your asking price.
3. Be Open to Compromise
The “perfect offer” might not come along. Flexibility — whether on price, closing dates, or minor repairs — can make it easier to close the deal faster.
What This Divide Means for the 2025 Housing Market
This pricing gap reveals key dynamics about 2025’s housing market. Sellers remain confident, but buyers are cautious due to tighter budgets. The result? Buyers and sellers need to find a middle ground.
For Buyers: Do your homework, act fast on good deals, and be ready to compromise on terms.
For Sellers: Price your home to reflect market realities, make it stand out, and be open to negotiating key terms to avoid long waits on the market.
With a little flexibility on both sides, buyers and sellers can close this $27,000 gap and strike a deal that works for everyone.
TL;DR
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Buyers plan to spend $386,507, while sellers are aiming for $413,976 — that’s a $27,000 gap in expectations.
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Sellers are confident their homes will sell at or above asking, but buyers face tighter budgets due to rising mortgage rates.
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Buyers should do their research, be ready to compromise, and watch for opportunities. Sellers should price smart, showcase their home, and stay open to negotiations.
So, are you ready to bridge that gap? Let’s work together to make your 2025 home buying or selling goals a reality!