If you feel like now is the worst possible time to buy real estate, we understand. We talk with buyers and investors every day who are feeling squeezed by the cost of living, discouraged by home prices and watching mortgage rates hover near 7%. At the same time, many people are not seeing their income rise enough to make a purchase feel comfortable.
So, why would we tell you to start looking now?
Because difficult markets often create opportunities that are easy to miss when everyone is focused on the headlines.
This does not mean everyone should buy a property today. It does not mean stretching your budget or forcing a deal that does not work. It means getting clear on what you can afford, learning which strategies are available and finding out whether the current market may offer more negotiating power than you realize.
A Challenging Market for Buyers Can Also Be a Negotiable Market
When rates are low and buyer confidence is high, good properties can attract multiple offers. Buyers may have to compete on price, shorten deadlines, limit contingencies and accept a property largely on the seller’s terms.
When buyers pull back, the dynamic changes.
Homes sit on the market longer. Some sellers reduce their prices. Others become more open to concessions, repairs, flexible closing dates or financing solutions that help a buyer make the numbers work. Sellers still need to sell because of job changes, divorce, inherited property, financial pressure, portfolio decisions or a move that cannot wait for the “perfect” market.
Recent Denver-area data reflects that slower environment, with active and pending homes averaging roughly 80 days on market and inventory exceeding four months at the time of writing. Those numbers will change, and conditions vary by neighborhood and property type, but the larger point remains: buyers generally have more room to negotiate than they did in the highly competitive pandemic-era market.
Mortgage rates are still a legitimate affordability challenge. The national average for a 30-year fixed mortgage was 6.95% as of September 17, 2026, according to Freddie Mac. But the interest rate advertised in a headline is only one part of a deal. The purchase price, seller concessions, loan structure, rental income and property strategy can all affect whether a purchase works.
Start With the Payment, Not the Asking Price
Many buyers look at a listing price and immediately decide whether a home is affordable. We prefer to work backward.
First, determine a monthly housing payment that fits comfortably within your budget. That calculation should include principal, interest, property taxes, homeowners insurance, HOA dues and mortgage insurance when applicable. The Consumer Financial Protection Bureau also recommends accounting for these costs when estimating an affordable payment.
Then we can evaluate what combination of price, financing and negotiated terms could bring a property into that range.
If a home has been sitting on the market and the seller is motivated, the list price does not have to dictate the offer. A buyer may offer the amount that makes sense for their finances and support it with comparable sales, the property’s condition and current market activity. The seller can accept, reject or counter, but a thoughtful offer creates a real conversation.
Creative Ways Buyers May Be Able to Make a Deal Work
There is no single strategy that fits every buyer, seller or property. Each option depends on the loan program, lender approval, seller motivation and the buyer’s qualifications. Here are several tools we consider when putting a deal together.
1. Negotiate a lower purchase price
Sometimes the most effective solution is also the simplest. A property that has accumulated significant days on market may be overpriced, need work or have a seller whose priorities have changed. A lower price can reduce the loan balance, required down payment and long-term cost of ownership.
2. Ask for a permanent interest-rate buydown
Instead of applying all available negotiating power to the price, a buyer may ask the seller to provide a concession that is used to pay discount points and permanently reduce the mortgage rate. Depending on the numbers, lowering the rate can have a larger effect on the monthly payment than a modest price reduction.
The concession must comply with the loan program’s limits, and the value of the buydown should be compared with other uses for the same money. This isn’t our favorite option, but it might be what you’re most comfortable with.
3. Use a temporary buydown
A temporary buydown, such as a 3-2-1 or 2-1 structure, uses funds paid at closing to reduce the buyer’s effective payment during the first few years. With a 3-2-1 buydown, the payment is generally calculated as if the interest rate were three percentage points lower in year one, two points lower in year two and one point lower in year three before returning to the full note rate.
This can provide breathing room for a buyer who expects their income to increase or wants time to stabilize after moving. However, the buyer typically must qualify using the full note rate and should be comfortable with the eventual full payment. A temporary buydown is a transition tool, not a substitute for affordability. To learn more about this structure, reach out to a preferred lender and see how it could work for you.
4. Look for an assumable mortgage
Some government-backed mortgages, including many FHA, VA and USDA loans, may be assumable with approval from the loan servicer. This can allow a qualified buyer to take over the seller’s existing loan, potentially at a rate from the 2.5% to 3.5% etc.
The challenge is the equity gap. If the seller owes $350,000 on a home selling for $500,000, the buyer still needs a way to cover the remaining $150,000 through cash, permitted secondary financing or another negotiated structure. Assumptions can also take longer than a standard transaction. For VA loans, the parties should get specific advice about the seller’s VA entitlement and release of liability.
5. Explore seller financing
In a seller-financed transaction, the seller agrees to receive some or all of the purchase price over time rather than being paid entirely through a traditional mortgage at closing. The parties may negotiate the interest rate, down payment, amortization schedule and balloon date.
Seller financing can be useful when a property is owned free and clear or when the seller values ongoing income. It requires properly drafted documents, title work and advice from qualified legal and tax professionals. It is not appropriate for every property or seller.
6. Consider a lease option or rent-to-own structure
A lease option may allow a buyer to rent the home for an agreed period while retaining the option to purchase it later. The agreement may establish a future purchase price and specify whether any option fee or portion of the rent is credited toward the purchase.
This can create time to build credit, save additional funds or improve loan eligibility, but the contract details matter enormously. Buyers should understand exactly which payments are refundable, which are credited and what happens if they do not ultimately qualify for financing.
7. Request closing-cost or repair concessions
Cash to close can be as significant a barrier as the monthly payment. A seller concession may help cover eligible closing costs, prepaid taxes and insurance, discount points or other lender-approved expenses. Alternatively, a buyer may negotiate a credit for repairs instead of asking the seller to complete the work before closing.
Concession limits vary by loan program and occupancy type, so the agent and lender should coordinate before the offer is written.
8. House hack the property
This has always been our investor’s bread and butter. While a classic house hack likely won’t let you live for free right now, adding more bedrooms or being ok with just offsetting your mortgage can make a huge difference.
The strategy must comply with zoning, occupancy rules, leases, HOA restrictions and the loan program. Buyers also need to budget for vacancy, repairs and management. Still, a home that feels expensive as a traditional residence may look very different when it also produces income.
9. Revisit properties that need cosmetic work
Many buyers compete for renovated, move-in-ready homes and overlook properties with dated finishes, poor listing photos or manageable deferred maintenance. A home that needs paint, flooring or landscaping may offer room to negotiate and the chance to add value over time.
Generally, turnkey properties, that are priced right, are still selling quickly, so being open to improving the property over time might open up more opportunities.
10. Structure the offer around what the seller values
Price is only one term in an offer. A seller may care about certainty, timing, possession after closing, fewer logistical headaches or the ability to sell a property in its current condition. When we understand the seller’s priorities, we can look for terms that provide value to both sides without asking the buyer to overpay.
What About Subject-To Deals?
Some investors purchase a property “subject to” the seller’s existing mortgage, meaning title transfers while the original loan remains in the seller’s name. This strategy is discussed frequently because it may preserve a low existing rate, but it carries meaningful legal, financial and ethical risks.
The lender may have the right to enforce a due-on-sale clause. The seller remains connected to the loan, and missed payments can damage the seller’s credit. Insurance, servicing and disclosure issues must also be handled correctly. This is not a casual workaround. If you’re going to go down this path, you need a team who has navigated it before.
Investors Should Negotiate the Business Plan, Not Just the Property
For investors, a discounted price is valuable, but the deal still needs to perform. We look at realistic rents, vacancy, maintenance, capital expenditures, taxes, insurance, financing costs and property management. We also consider whether the property supports more than one viable strategy.
Could it operate as a rent-by-the-room rental today and become a traditional rental later? Does it have a layout suited to house hacking? Is there legitimate potential for an ADU? Can cosmetic improvements raise rents without requiring a major renovation? A creative acquisition only matters if the underlying property and operating plan are sound.
We do not recommend buying based solely on the hope that rates will fall or prices will rise. Refinancing may be possible later, but it is never guaranteed. The deal should be sustainable under the terms available today.
The Best Deals Usually Do Not Look Obvious at First
The stories buyers tell years later often sound impossible: they bought for $80,000 below the original asking price, assumed a 2.5% mortgage, received enough seller concessions to lower their payment or found a property whose rental income covered a meaningful portion of the housing cost.
Those deals are real, but they are not automatic. They come from knowing what to look for, understanding seller motivation, analyzing the full financial picture and writing offers that solve problems for both parties.
In a fast market, buyers often win by moving quickly and paying more. In a slower market, they may win through patience, preparation and creativity.
Do Not Let the Headlines Make the Decision for You
Buying real estate in the current market may not be the right move for you, and a good agent should be willing to say that. But deciding not to look because the market feels intimidating can cause you to miss an opportunity that fits your actual budget and goals.
If owning a home, house hacking or adding an investment property would meaningfully change your life this year, let’s start with the numbers. We can help you define a comfortable payment, evaluate properties, identify motivated sellers and explore the strategies that may be available to you.
You do not need to force a purchase. You simply need enough information to recognize the right opportunity when it appears.
This is where the magic of real estate happens: not when everything is easy, but when the right property, the right terms and a thoughtful strategy come together.
Reach out to get going, lets see what opportunities await!
