How to Sell Homes in a Down Market

The 2025 housing market is anything but predictable. With housing prices exacerbating affordability concerns among buyers, recent tariffs threatening to raise the cost of building materials, and rising recession fears, the industry remains sluggish. Amid the myriad of fluctuating market conditions, many new home builders may be left wondering whether it’s even possible to boost home sales at this time. The answer is yes. 

Using five proven strategies, home builders and their sales teams can build trust with buyers, address their affordability concerns, and drive sales even in challenging conditions. You’ll learn how to craft a message of reassurance, cultivate meaningful relationships with buyers, and adapt your sales tactics to meet the unique demands of a down market. 

Our free e-book, “Maximizing Sales in a Sluggish Market: A Guide for Home Builders,” can help you navigate current market hurdles and successfully sell homes in a down market. 

The Biggest Challenges for Home Builders in a Down Market

Before we dive into how it’s essential to understand what a down market is and how the current economic landscape affects home sales as we move into 2025. This understanding will shape your approach to selling homes even when the market is struggling. 

A down market is generally characterized by a significant drop in home sales, driven by rising mortgage rates, declining demand, and decreasing home prices. For home builders, this typically results in fewer prospective buyers visiting model homes and a noticeable slowdown in sales. 

So, if a down market means home sales are down, how can builders avoid this downturn? The challenges for new home builders usually fall into two categories: attracting traffic and converting leads. 

Not every builder faces the same obstacles — some may struggle to draw visitors, while others find it challenging to convert interested buyers into homeowners. Underlying it all is a persistent sense of economic instability that can make potential buyers hesitant to commit to such a significant purchase. 

In this climate, new home sales agents must convey a reassuring message: It’s okay to invest in a home. Building trust and easing uncertainty will likely take more than one conversation; it requires cultivating a relationship.

If you’re wondering how to sell homes in a down market, the following five tips will help you overcome these challenges and achieve strong home sales.

5 Tips for Selling Homes in a Down Market

These expert insights will help you keep your pipeline strong and maximize new home sales amid market headwinds. 

1. Say Goodbye to Blanket Discounts

Simply lowering prices isn’t the most effective way to attract more buyers in a down market. Broad, blanket discounts, like “$20k off” for everyone, may have worked in the past, but they no longer capture the attention of today’s discerning buyers. Customers have become accustomed to generic offers, and without a targeted approach, these promotions can lose their appeal. Instead, strategic, personalized incentives are far more compelling, providing a tailored experience that speaks directly to each buyer’s needs and motivations. 

When creating incentives, it’s essential to consider whether they’re designed to bring in new traffic or convert leads already in your pipeline. A one-size-fits-all offer may generate some interest, but aligning incentives with your target consumer profile (TCP) will be a game-changer. Rather than a “shotgun” approach, which applies broadly without precision, think of your strategy as using a “sniper” approach — targeted, impactful, and relevant to the unique characteristics of your ideal buyers. For example, young buyers interested in energy savings might respond better to incentives for green appliances, while families concerned about financing might find rate buydowns more attractive. 

By tailoring incentives specifically to the needs and desires of your TCP, you create a more compelling offer that not only attracts interest but also effectively moves buyers toward conversion. This targeted approach is key to standing out and achieving sales success in a down market. 

2. Don’t Forget the Small Stuff

In a down market, the small details are crucial to creating a memorable impression that can win over potential buyers. While staging significantly enhances a home’s appeal, no single solution guarantees success — the combination of multiple small touches makes the difference. Ensuring the cleanliness of the home site, refreshing model home staging to stay current with design trends, and paying attention to sensory elements like pleasant scents can all contribute to a welcoming, inviting experience. 

Professional photography and videography are also essential, as they present the home in its best light and capture attention online, often forming a buyer’s first impression. 

Regularly taking a step back and being objective about the presentation allows you to see areas that could use improvement, ensuring nothing is overlooked. While small individually, these details work together to create a polished and appealing atmosphere that resonates with buyers, setting your homes apart in a competitive market.

3. Smooth Out Those Sharp Angle Negotiation Tactics

In a hot market, “take it or leave it” and “move now or lose out” approaches can be effective. These sharp-angle negotiation tactics give the impression of high demand and create urgency. However, in a down market, a different approach is necessary. 

Successful negotiation becomes relational rather than transactional, focusing on building rapport, understanding the buyer’s needs, and crafting creative solutions that make the deal work for both parties. This shift in strategy allows sales agents to meet buyers where they are, understand their unique circumstances, and find ways to reach mutually beneficial terms. 

New home sales agents must approach negotiations flexibly to sell homes in a down market, working at the edges of established procedures to meet buyer needs. Agents should intentionally find reasons to say yes instead of looking for reasons to turn down offers. Each buyer represents a valuable opportunity, and with fewer prospects coming through, nurturing each relationship is crucial. 

Tailored negotiations that align with the TCP show potential buyers that their specific needs are listened to and valued, creating a more personalized and satisfying experience. In this way, relational negotiation tactics close more deals and build stronger buyer relationships that can lead to referrals and future opportunities.

4. Get Commitment to the Community First

Getting potential buyers to commit to the community rather than a specific home or lot can be a powerful strategy in a down market. When buyers are enthusiastic about the area, builder, and community, you’re well on your way to securing a sale, as they’ve already bought into the lifestyle and environment surrounding the home. Shifting focus from the individual house to the community allows buyers to see the broader value of living there, from amenities to the builder’s quality and reputation. 

The pressure to close on a specific home is reduced in a slower market, allowing the sales agent to emphasize the unique benefits of the community. They should showcase everything the area offers: parks, schools, nearby attractions, community spaces, and local businesses that make the neighborhood feel like home. By creating a strong foundation of trust in the builder and highlighting the community’s appeal, buyers feel confident in their decision to live in that location — choosing a specific home or lot is much easier and more likely to result in a close.

5. Build Partnerships with Local Employers to Drive Relocation Sales

Becoming a preferred housing partner for large corporations or local organizations is an excellent way to tap into a steady flow of potential buyers relocating for work. Many companies regularly bring in talent from other areas, and these new employees will need to settle into the community, often looking to buy a home nearby. By partnering with these employers, you can position your homes as the top choice for incoming residents, offering a seamless transition to their new home and community. 

To make these partnerships even more appealing, consider highlighting local amenities, schools, and community features that resonate with relocating families and professionals. Tailoring programs to meet the needs of specific groups, such as teachers, first responders, and healthcare workers, can further enhance your reach. For instance, a “local heroes” program offering incentives for firefighters, police officers, and EMTs can make a powerful impact, showing appreciation and directly appealing to these valued community members. 

When targeting areas with significant job creation, partnering as the official housing representative can help drive the right traffic to your communities. Collaborating with these organizations to promote housing options gives you access to a targeted audience of potential buyers committed to relocating, increasing the likelihood of conversions. By aligning with employers and providing tailored incentives and community connections, you increase foot traffic and build meaningful relationships that enhance your reputation as a trusted and community-focused home builder.

Maximize New Home Sales in a Sluggish Market 

These five tips for selling homes in a down market are only the beginning. Download our free e-book “Maximizing Sales in a Sluggish Market: A Guide for Home Builders” for more expert insights, including: 

• Effective ways to approach home buyers who are set on waiting for the housing market to improve
• How Sales Associate Marketing Initiatives (SAMIs) can help drive traffic and convert leads
• How to determine who your primary audience is during a down market 
• The importance of maintaining quarterly analytics and reporting