It’s a great market for home buyers in many areas of the country, so if you’re planning to sell your home in San Jose and move to a new location, you may be in an excellent position to take advantage of both markets and do very well. Many of our clients are relocating to beautiful areas such as Idaho, Washington, Texas, Florida, North Carolina, and more!
Here are my tips for negotiating your next home purchase:
1. Determine the seller’s pricing strategy. The list price is a marketing tool, so remember that it might be low, fair, or high. Look at recent sales data with your agent to determine fair market value.
2. What is the competition level for the house? The listing agent will let your agent know. You’ll have a better chance of getting a good price if you are the only one bidding. That being said, don’t let a little competition scare you away! Just do your research on neighborhood values.
3. Learn as much as you can about the home’s condition and make your offer “as is.” I always recommend factoring the condition into your offer price. This makes escrow go much more smoothly than if you try to renegotiate repairs after you get an offer accepted.
4. Make an offer that is lower than list price but still reasonable. The trick is to get a discount but not offend the seller and sour the negotiation. Everyone wants to feel like they did their best. Allow the seller to counteroffer you and meet somewhere in the middle. If you feel that the home is overpriced, have your agent share the data points you used to determine fair value so that the seller knows you were thoughtful in your approach.
5. Ask for a credit or discount, not repairs. The seller will never do repairs the way you want them to. Just ask for money! Then, you can hire who you want, spend what you want, and keep an eye on the repairs that are done on your new home.
6. Waiving or shortening your contingency periods can help you get a better price. The seller may be willing to take a lower offer if your terms are strong!
7. If you’re worried about monthly payments, consider asking for a “rate buydown.” This is a credit that the seller can pay to help you permanently or temporarily lower your interest rate! Talk to your agent and lender about this strategy.
8. If the home is new construction, ask for builder upgrades. Developers are more likely to agree to this than to a price reduction. You can also often save money on closing costs by using their preferred lender!
9. Finally, offer a quick close of escrow if possible. This is a way to save the seller some money without offering them a higher price. Talk to your lender and see if you can shorten your escrow from 30 to 21 days, for example!
Remember, we have connections to top agents across the country! Let me know if you need a referral. I would love to help you find a great negotiator for your next home! Happy house hunting!
Your Cambrian Realtor,
Kirsten Reilly
