The Real Estate Buyer’s Collective Conscience

The real estate market is more than numbers and contracts — it’s shaped by memory, experience, and perception. Today’s buyers are carrying with them a “collective conscience” formed during the COVID housing boom, and it’s still influencing how they approach negotiations in 2025.

The COVID Market: When Sellers Held All the Cards

During the height of the pandemic, buyers faced one of the most competitive markets in history. Homes sold in days — sometimes hours — often with multiple offers well above asking price. To win, buyers had to give up almost everything:

• Paying full price or above with little room for negotiation
  
  

• Waiving appraisals and covering any gaps out of pocket
  
  

• Forgoing closing cost assistance
  
  

• Accepting homes “as-is” with sellers refusing to make repairs
  
  

Sellers, fueled by unprecedented demand, enjoyed unmatched leverage. Many were receiving premium prices without making concessions.

The Lingering Effect on Buyers

Fast forward to today, and the market has shifted. Interest rates have cooled buyer demand, inventory is building in some areas, and sellers are no longer guaranteed multiple over-asking offers. Yet, buyers’ memories of the COVID market remain strong.

That collective memory shows up in conversations at the negotiation table:

• Buyers remember when they “had no power” — and are determined not to repeat it.
  
  

• They are more cautious, analytical, and sometimes even hesitant, waiting for the “right” deal.

•  Many expect that the pendulum has swung, and it's now their turn to regain leverage.

A Balancing Act in Today’s Market

The reality is more nuanced. While buyers now have more negotiation power than in 2020–2021, sellers are still protecting their equity. Markets are local, and conditions vary dramatically between neighborhoods and price points.

The challenge for real estate professionals is helping both sides move beyond the psychological shadow of the COVID market. Sellers need to recognize that yesterday’s premiums are gone, while buyers need to understand that every home can’t be treated as a distressed sale.

Moving Forward

The “collective conscience” of buyers will likely remain a factor for years to come.  The housing market may have shifted, but memory is powerful. Today’s buyers aren’t just looking for a home — they’re also seeking redemption from a time when the cards were stacked against them.

Working with a real estate professional who understanding this mindset allows them to better frame expectations, guide negotiations, and bridge the emotional gap between what buyers lived through and what today’s market truly offers.