Richmond Sellers Are Cutting Prices. Is That the Right Move?
360 price reductions in just seven days. That’s what caught my attention when reviewing the latest MLS activity across the greater Richmond area. During that same period, 318 new homes were listed, 258 went under contract, and 222 sales closed. Buyers are clearly still active, but sellers are making adjustments. The question is whether they’re making the right adjustments.
What’s Behind All These Price Reductions?
My suspicion is that many homes simply started at prices higher than buyers were willing to pay. After several years of strong appreciation and limited inventory, some sellers may still have expectations that don’t reflect today’s market. Higher mortgage rates are also affecting affordability, and some sellers may be reacting to slower activity by lowering their asking prices.
But here’s something worth considering: Is the asking price really the problem, or is it the buyer’s monthly payment?
Sometimes There’s a Better Alternative
I recently discussed this with Realtor Kim during one of our Tailgate Talk conversations. Consider a home listed for $400,000. A $10,000 price reduction might save a buyer approximately $65 per month in principal and interest, assuming 95% financing and a 30-year mortgage at 7.375%.
If the seller offered that same $10,000 toward an allowable permanent mortgage-rate buydown? Depending on the loan program and available pricing, the buyer could potentially save considerably more each month.
That’s not always the right solution. If a home is overpriced compared with competing properties, reducing the price may be necessary. But when affordability is the obstacle, helping with financing costs may be more effective. The important thing is identifying the problem before choosing the solution.
What Does This Mean for Buyers and Sellers?
For sellers: Before reducing your price, consider what’s preventing buyers from making an offer. Is it the price, the monthly payment, the home’s condition, or competing properties?
For buyers: Don’t focus exclusively on negotiating the lowest purchase price. Sometimes negotiating assistance with closing costs or mortgage rates can provide greater financial benefits.
Thinking About Investment Properties?
We’re hosting our Evaluating Investment Properties workshop this Thursday, October 22, from 5:30–6:45 PM at 5300 Hickory Park Drive in Glen Allen. We’ll examine a potential rental property, discuss financing and expenses, and answer one important question together: Would you buy it?
The Bottom Line
Richmond’s housing market is still active, but buyers have more choices, and sellers need to be thoughtful about how they respond. Sometimes a price reduction is necessary. Other times, there’s a better way to make the numbers work.
The goal isn’t simply to get a home sold or negotiate a lower price. It’s to structure a transaction that makes financial sense for everyone involved.
Paul Cantor
Cantor Team Home LoansTrustMor Mortgage Company
NMLS #49523
Equal Housing Lender
Source: CVR MLS Market Watch, seven-day residential activity snapshot, October 18, 2026, for nine greater Richmond localities. Counts reflect MLS activity and may not represent unique properties.
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