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    Key takeaways

    Listings with phrases like "priced to sell" or similar descriptions come with an average national discount of 8.5%, or around $38,000 off the median-priced home.

    The discount varies widely across markets, ranging from 23.1% in Little Rock, AR, to just 3.2% in Orlando, FL. The share of listings with "priced to sell" phrases also differs significantly, from 1.9% on Long Island, NY, to 6.7% in Sarasota, FL.

    Metros with a higher share of "priced to sell" homes tend to have smaller discounts, likely because sellers need to offer a discount when other such listings are rare. Nationally, value phrases like "under valued," "under priced," and "bargain" are associated with listing prices 8.5% lower than similar homes.

    Discounts are largest in the South and East, smallest in Florida and the Southwest

    Homebuyers in Southern and Midwestern markets can expect significant discounts on properties with "priced to sell" listings. Little Rock, AR, St. Louis, MO, and Charleston, SC, lead the pack, with average discounts of 23%, 18.7%, and 15.9%, respectively.

    Markets with the smallest discounts are mostly in Florida and the U.S. West. Orlando, FL, Seattle, WA, and Salt Lake City, UT, have the lowest discounts at 3.2%, 3.7%, and 3.8%, respectively.

    Fewer 'priced to sell' properties in your market? Expect larger discounts

    There's a strong correlation between the share of listings in a market and the size of the discount offered by sellers of "priced to sell" properties. This suggests that buyers in markets with few such listings might be more sensitive to characteristics like home condition.

    For example, Long Island, NY, has just 1.9% of listings with "priced to sell" terms, but discounts are relatively large at 12.5%. In contrast, Sarasota, FL, has a higher share (6.7%) and smaller discounts (4.4%).

    Methodology

    We analyzed single-family homes listed on Realtor.com in the U.S. on Aug. 10, 2024, to determine if "priced to sell" listings are actually discounted. We used a hedonic pricing model to estimate the effect of bargain terms on listing prices while controlling for various property characteristics.

    Only 38 out of the 100 largest U.S. metros met our criteria for significant discounts associated with "priced to sell" listings. We calculated the average listing price discount for each of these metros, using the median listing price from Aug. 10, 2024, as a reference point.