The Real Estate Standoff: Buyers vs. Sellers

We’re in a strange moment right now.

Sellers still think it’s 2021. Buyers know it’s 2025. And neither side wants to blink.

What we’re seeing is a frozen market—not just cooling, but stalling. Especially in places like Spokane, Washington. Normally, you'd see 15 to 20 multifamily properties sell every quarter. This past quarter? Just four. Next quarter might be even fewer.

And it’s not because there aren’t listings. There are plenty. In fact, there are more multifamily listings than we’ve seen in years. But here’s the catch: almost all of them are overpriced.

What Happened?

Most of these owners bought between 2020 and 2022—when everything was peaking. Prices were high, rents were rising, and everyone thought the good times would keep rolling. So they took on big loans, often with adjustable rates, assuming they could refinance later.

But then the Fed raised rates—fast. Mortgage payments doubled for some of these investors. Meanwhile, property values dropped 10–20%, and rent growth slowed way down. The numbers stopped working.

Now those same owners are stuck. They’re holding out—hoping someone will pay yesterday’s price in today’s market.

The Invisible Loss

Even if a seller lists a property for what they paid, they’re still losing money:

• 2–3% to the buyer’s agent

• 2–3% to the seller’s agent

• 2–3.5% in excise taxes (in Washington)

That’s up to 10% gone—before factoring in any drop in value.

And that’s not counting the cost of repairs—roofs, plumbing, appliances—that stacked up along the way. Most sellers are underwater, whether they admit it or not.

The Buyer’s Side

I’m on both sides right now—selling some properties and trying to buy others. And I can tell you: buyers have options. They’re patient. They know sellers are squeezed. And they’re not in a rush.

I’m seeing listings where the “real” price is $500K less than the list price. Why? Because sellers are afraid to drop the asking price publicly. They’re worried that if they lower it to $2.5M, buyers will start coming in at $2.0M. And they’re right—we will.

It’s like everyone’s waiting for someone else to blink.

What Happens Next?

Eventually, something’s going to give.

Sellers are stacking up. Listings are increasing. And the longer properties sit, the more pressure builds. At some point, someone’s going to need to sell—because of bad debt, life changes, or just fatigue.

And once enough properties start closing at lower prices, that becomes the new market.

I’m not calling for a crash. But another 5–10% drop? Wouldn’t surprise me. Especially in mid-sized multifamily. When the dam breaks, a lot of deals are going to flow through.

Final Thought

Markets don’t stay frozen forever. But right now? We’re in a standoff. Buyers are disciplined. Sellers are in denial. And until one side blinks, expect more of the same: overpriced listings, patient buyers, and deals that take forever to close.

If you’re a buyer—stay patient.If you’re a seller—be realistic.

Because at some point, the clock runs out.