I am a hopeful property buyer who took a break from my home search early this year because the process was so competitive and frustrating. I am hearing the market has shifted in the last few months. Is it true that I may be able to write an offer on a home or townhome that I like and encounter less competition? And might there be an opportunity to negotiate on price and terms?
Thank you, Jessie
Thanks for your great question. Each real estate transaction is composed of a variety of factors that impact the buyer’s and seller’s willingness to negotiate. Nationwide, the real estate market has seen a shift in the last few months. In the metro San Diego area our inventory remains low, and this is an advantage to sellers. However, we are seeing fewer offers being made on some homes and this could create an opportunity for buyers to have more ability to negotiate price and terms.
For example, in the past few years, to be competitive, some buyers chose to remove inspection or appraisal contingencies in the offer process. Now buyers are typically writing offers with inspection, appraisal and other contingencies in place, and some sellers are agreeing to that. These contingencies give buyers time to conduct due diligence on the condition of the property and get their loan in place. In some cases, motivated sellers are offering to buy down the buyer’s interest rate. This means that the seller will give a credit at closing to allow the buyer to lower the interest rate of their loan by .25% or .50%, thus saving them money on their mortgage payment each month. If offers have not been received on a new listing in the first week or so we are seeing some price reductions, and if there are multiple offers on a home, there are fewer bidders and their offers are not as far above the list price as they were earlier this year.
We see this market shift an opportunity to get creative and come up with the best strategy for each of our buyer clients. Our years of negotiating experience and market knowledge allow us to place you in the most paramount position for this important purchase. Let us demonstrate how we can work to find the best property at the best terms for you. It is an excellent time to be a buyer!
Maureen and Antoinette