On Sept. 17, the Federal Reserve cut interest rates by a quarter of a percentage point. Not only that, the Fed signaled a willingness to cut rates even further, potentially twice more by the end of 2025. The next one could come soon.

This rate cut; however, isn’t as straightforward for the housing market as it may seem. Here are 12 tips for attracting sellers who were waiting for lower interest rates.

Why do sellers wait for lower rates?

If sellers bought when mortgage rates bottomed out at 2.65% in January 2021, they may be reluctant to give up their own low rate for a higher one.

Inventory is also scarce in many areas. Although markets vary across the country, it may be difficult to find a new house, whether that’s across town or in a different state. Many sellers who don’t want to rent are reluctant to give up their home without first finding another.

Another reason sellers wait for lower rates is to increase their chance of getting an offer above asking price. In late 2024 and early 2025, approximately 43% of sellers had to lower their asking prices, according to a study by Clever Offers. That’s higher than the percentage of sellers who actually received an offer above asking price during that same time period.

What’s different now that the Fed cut rates?

Mortgage rates are not actually tied to the Fed Funds Rate, which got cut by a quarter percent. Instead, they follow the bond market. That means mortgage rates fluctuate daily, and the rate today may be higher or lower than the rate tomorrow or last week.

The other challenging factor is that the mortgage rate is just one part of the economy. With inflation hovering near 3%, sluggish job growth, and political uncertainty, sellers may still be reluctant to list, even after the Fed’s rate cut.

How to attract sellers

When sellers are reluctant to enter the market, there are steps you can take to help them understand the advantages of listing when interest rates are uncertain. Here are 13 tips for spurring sellers to action.

1. Paint a bigger picture

It’s a delicate balance, but sellers must understand how fewer listings can mean bigger profits. Sellers have more negotiating power when there are fewer homes to choose from, but this advantage diminishes when rates drop and other sellers list. Even if rates are still somewhat in flux, buyers are out there looking for a house. If your seller has a property ready to go, it’s in their best interest to show it off when stock is low.

The shift toward a buyer’s market means fewer homes are selling above asking, and some are even dropping below. Just 28% of homes sold above asking price in June 2025, compared to 32% at the same time last year, according to data collected by Redfin.

There will always be buyers who need to relocate immediately, and if a seller’s house is one of just a few available, chances are good they will find a buyer quickly.

2. Explain rental options

Many sellers struggle with the idea of renting after selling their house. After all, owning a home means building equity, while renting puts money in someone else’s pocket.

But there are several advantages to renting and using a “move-up-later” strategy. Sellers will have more options as buyers when rates drop. Renting is also a great way to explore other areas without commitment and may lead to a wider search for the perfect home.

3. Focus on the buyer

When there are few houses for sale, buyers circle them like sharks, snapping them up quickly. Use local statistics and comps to highlight the demand that exists in your area, even with uncertainty about rate cuts and the economy’s health.

4. Explain the possibilities of home equity

Sellers may be unaware of the home equity they have locked in their home. Offer personalized home equity updates to demonstrate how much profit they could walk away with at different sale prices. Include all fees, including yours, so they can see how much cash they could have on hand.

5. Work with lifestyle goals

Selling a home is one way to reach a milestone. Sellers might be downsizing as the nest empties, or they might need a larger home as their family expands. Focus on helping clients achieve their lifestyle goals instead of tying the decision solely to interest rates.

6. Educate yourself and your clients

Predicting the actions of the Federal Reserve is a bit like predicting the weather. Although you can’t guarantee the Fed will cut rates further or inflation will drop enough to make buyers more confident, you can educate yourself and your clients about what might happen and when rates might drop. It helps to pay attention to historical data and to keep up with current events.

7. Target your social media

If you are using social media properly, now is the time to craft your posts for sellers who are on the fence about listing their home. Use headlines like, “Why Now Could Still Be the Right Time to Sell.”

8. Explain listing options

First-time sellers may not understand all of their options. Explain rent-back agreements, which sellers could use to rent back their home from the buyer until interest rates improve.

9. Check in with lenders

Lenders are also deeply invested in attracting sellers. Partner with a mortgage broker to develop creative financing solutions, such as assumable loans or buy-downs. These can increase seller confidence and convince them to list.

10. Focus on cash buyers

Depending on your area, there are still plenty of investors and cash buyers who are purchasing homes. Highlight these potential buyers and develop networks of qualified buyers who do not depend on fluctuating mortgage rates.

11. Practice patience

It’s still a seller’s market, but sellers should know the white-hot market of 2021 is cooling down. Depending on the market, a house may not sell in 24 hours above the asking price anymore. Rather, houses are selling in 58 days on average, compared to 51 days at the same time in 2024, according to Realtor.com.

It helps to think more historically. In 2015, homes went under contract in 51 days on average, according to the National Association of Realtors. This was due to similar conditions, such as low inventory and high demand. The following year, days on market dropped to 43 days, even though interest rates had actually increased. Sales spiked instead of slowing down.

If your sellers wait too long to list, they may miss the current window of favorable conditions altogether.

12. Act as a trusted advisor

Ultimately, real estate is about relationships. Acting in your clients’ best interest is how you develop relationships that last over many home sales. Share honest, no-pressure advice that respects a seller’s reluctance but offers clarity on the market as it stands today.

Luke Babich is CEO of Clever Real Estate.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: tracey@hwmedia.com

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