Negotiations are at the forefront of the home buying process. This is the crucial period where you work with the sellers in order to possibly close on a home. This can get complicated, especially when there are competing offers on the table.
In the last year, demand has dipped some for new homes in Southern California. However, the median price of homes in the last year rose 7.6 percent in this area. This dip in demand is advantageous to Southern California home buyers because it raises their power in negotiations.
This is because the less competitive the market becomes and the less people are buying, the more likely the seller will want to make a deal that is in their interests. To help yourself prior to negotiations, it is critical that you do your research.
Find a Real Estate Agent Who Can Negotiate
Finding a good real estate agent will help you during the negotiation process. A real estate agent in Southern California who has a track record of closing can use this experience to help you during the negotiation process. They’ll know the market, understand the area’s pricing and help you to close on a home.
How will you know the difference? Prior to working with a real estate agent, you can ask for their listings. This is information based on previous homes they have sold. By contacting previous customers, you can learn how the real estate agent was during the process.
Get Your Money in Order
Before negotiations, you’ll want to make sure your money is in order. This will help assure the seller that you are serious about closing. This could give you an upper hand over other prospective buyers.
If you are using a loan, be sure to obtain a pre-approval letter from your banking institution. Sellers want to know that you have funds secured, along with the good faith deposit and closing fees. This will help them make a decision based on your offer, as well as offer from competing buyers.
Be Prepared for a Counter Offer
Most home sellers will only work with the few top submitted offers. This is usually based on the offer price, while some features in the contract can also influence their decision. They may come back at you with a counter offer. This is the time where you’ll have to make some tough choices.
Depending on the market, this may be a time for you to pull out the pocket book and up your offer, or choose to walk away from the table. Be sure to have an exit strategy, no matter how desirable a home is, you’ll want to stay within a price range you can afford.
If you are looking to purchase a home in Encinitas California, I’d be happy to help you through the home buying process. I can talk you through what to expect, how to put together a plan of action and find the home you are looking for. I look forward to talking with you.