Published October 28, 2025

Negotiation Strategies in Today’s Market When Sellers Expect 2021 Prices

Written by Vinay Chinni

Aerial view of Los Angeles residential neighborhood with downtown skyline in the background, showcasing urban housing market and real estate opportunities in Southern California.

Many sellers still anchor their expectations to peak prices seen in 2021. As a buyer or investor, you can actually turn that into leverage. When sellers expect “2021 pricing,” you have negotiation room—if you come prepared with data, strategy, and patience. This post explores how to negotiate effectively in today’s environment, capitalizing on seller pricing gaps and market shifts.

Why 2021 Price Expectations Happen

During 2021 many markets saw rapid price growth, aggressive bidding, and low inventory. That creates a reference point for sellers who believe those levels are still achievable.
Today’s market often has higher mortgage rates, slower appreciation, and increased inventory—which means pricing power has shifted toward buyers in many cases.
Sellers anchored to 2021 may resist price reductions, but you as a buyer can use market data and timing to negotiate more favorable terms.
Recognizing the gap between seller expectations and current market reality is the first step to structuring a successful negotiation.

Core Negotiation Strategies

Use recent local comparables to show that pricing needs to align with today’s reality: dates, adjustments, and market conditions matter.
Highlight cost of capital: higher interest rates mean buyers carry more risk, which can justify lower purchase prices or more seller credits.
Leverage inspection results and repair estimates: when buyers uncover deferred maintenance or needed updates, they can ask for concessions or price reduction.
Build in time flexibility: sellers expecting 2021 may take longer to make decisions—your patience can become negotiating power.
Consider creative terms: extended closing, seller carry-back, financing assistance, or repairs paid post-closing can be effective.
Walk away power: being willing to step back if the deal doesn’t align keeps you from overpaying while sellers anchored to older pricing lose urgency.

When You’re Buying in an Investment Strategy Context

If you’re an investor buying with upside (value-add, ADU potential, rent growth), demonstrate your underwriting: show how current income projections support your price.
Emphasize stabilized income and risk mitigation: sellers who know you can perform may be more open to working with you.
Use rate environment arguments: with higher rates today, your required yield is higher—this supports negotiation on price or terms.
Align expectations: make clear the deal works for you only at today’s metrics, not 2021’s benchmarks.

How This Applies in Los Angeles (Studio City & Nearby Areas)

In these competitive Los Angeles neighborhoods, sellers often remain rooted in 2021 levels—but local data shows the market dynamics have shifted.

For Los Angeles County as of April 2025, median home sale price reached $875,908, a modest rise from earlier yet far from the rapid growth seen in 2021. (latimes.com)
As of May 2025, low- and mid-tier home prices were 7% above a year earlier and high-tier prices 5% higher in Los Angeles, showing moderate growth rather than 2021-style leaps. (journal.firsttuesday.us)
In neighborhoods like Studio City or Burbank, you may see sellers quoting “what we negotiated in 2021” as an anchor; you can counter with localized comps showing slower current growth and increased inventory.
Because mortgage rates are higher and buyer affordability is stretched, you as a buyer should bring underwriting that shows current income, financing cost, and risk assumptions—not 2021 assumptions.
Sellers who expect 2021 pricing may be more open to non-price terms (seller carry-back, faster closing, flexibility) if you present a solid offer aligned with today’s reality.

Key Takeaways for Buyer Negotiation Success

Know the gap: understand how the 2021 peak looks compared to today’s market data.
Undercut based on today's cost of capital and buyer risk.
Be prepared with conservative underwriting, inspection findings, and flexible terms.
Leverage local data to counter seller anchors.
Maintain the willingness to walk away—strong negotiation power often comes from being patient.

Want to Learn More or Get Personalized Guidance?

If you’re serious about learning more about funding or real estate opportunities in Los Angeles, email us at vinay@chinnirealty.com or call/text (323) 996-3746 to schedule a conversation.

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