Do buyers or sellers have the upper hand here?

Who has the upper hand?

Whether buyers or sellers have more leverage shapes everything from how much you offer to whether you can ask for repairs. This tool combines several signals into one reading for any ZIP code: local competition, supply, and, for larger metro areas, the balance of buyers and sellers and how often sellers are cutting prices.

How it’s calculated

It starts from the ZIP code’s competition score, flipped so that higher means more leverage for buyers. It then adjusts using Redfin’s estimate of active buyers and sellers in the metro area, and the share of listings with a price cut. More sellers than buyers and more price cuts push the reading toward buyers; more buyers than sellers pushes it toward sellers.

Reading the result

• 60 and above: buyers have the edge. Negotiate on price, ask for repairs or credits and keep your contingencies.
• 40 to 59: fairly balanced. Price well-presented homes near market value and negotiate on the rest.
• Under 40: sellers have the edge. Expect competition, and strengthen your offer’s terms.

An example

A ZIP code with a competition score of 30, in a metro area with 15% more sellers than buyers and many price cuts, would read around 75: a good time to negotiate.

Leverage changes with the seasons and interest rates, so check again before you make an offer.

Putting leverage to work

When buyers have the edge, you can ask for more than a lower price: seller credits toward closing costs, repairs after the inspection, a longer closing or a home warranty. When sellers have the edge, focus on what makes your offer easier to accept, such as a strong pre-approval, a flexible closing date and fewer contingencies you’re comfortable giving up. Either way, check the numbers for the specific home with the negotiation room or Can I win this house? tools.

Questions buyers ask