Sellers prepare yourself: The ‘rat-a-tat-tat’ sound you just heard may not be from neighborhood carolers or Santa’s reindeer on your roof, but from a qualified buyer ready to make a deal on your property. Buyers prepare yourself to negotiate a great price for your Carlsbad Dream Home. Welcome to the best buying month of the year, December.
If you have not been following real estate lately; welcome back. Although inventory has been at record high levels, the average sales price in Carlsbad has remained stable throughout the year. During the summer, sellers began offering more incentives to buyers and their agents in order to help sell their property, but have been unwilling to offer discounts in order to sell their property. This month will bring change.
Why Buy In December?
With the school term in full-swing and the hustle of the holiday season, buyers are less likely to purchase a home. November and December have seen as much as a 30% decrease in the number of sales compared to the months prior. Inventory has also built up due to the number of unsold homes during the summer months. With more homes currently on the market and fewer buyers to compete with, non-contingent buyers have a great opportunity to purchase their home at a great price.
Making A Lower-Than-Expected Offer
Negotiating a home successfully should leave everyone feeling like winners, which is the goal. There is no correct method for presenting a lower-than asking price offer, except that it must be handled skillfully. Similar to a lawyer building a strong case, make your offer with the idea that it will be accepted. Wishful thinking plus an unreasonable offer equals less-than ideal results.
However, remember to proceed with caution when making lower-than-asking price offers. This is a family’s home. If you offend the seller, whether by making an offer too low or with disagreeable terms, there will be repercussions. Also, take into account external motivating factors i.e. divorce, probate, corporate relocation or force sales. These will affect the seller's motivation to sell their property.
A Strong, Low Offer
Although your price may be lower than what the seller is expecting, create a stronger offer by removing contingencies from your contract. Present your offer with a pre-approval letter from a lender to show that you have strong financial capability. Write your time-frames with the seller's situation in mind. Closing in 30 days as opposed to 60 may hold intrinsic value to the seller.
Crucial Timing
Utilize the knowledge of a successful, seasoned professional to determine what leverage, if any, you have in making an offer. In your offer, amend the standard 72-hour timeframe that the seller has to respond to 24 hours. Consider that a majority of buyers will conduct their housing searches on the weekend, so plan on finalizing your negotiations before the weekend. The offer you have submitted can and will be used to move another interested party to submit an offer. This will compromise your bargaining power.
Should I always offer lower than list price?
No. You must consider what a property is worth to you before you begin negotiations. Real Estate is not strictly an investment or business commodity. If this is the home that you have been looking for, do not blow your chances by attempting to save a few thousand dollars.
Why Not Wait For The New Year?
Sellers must keep in mind that inventory increases during the first months of the new year, which could make selling a property more difficult. It may be ideal to finish negations at a fair price rather than delay until the new year. Here is the good news that you do not know: The recently record-high inventory has actually started its seasonal decrease. Although the number of sales decreases in the winter months, so does the number of homes for sale. As of November 23, there are 458 detached homes for sale in Carlsbad, down from a high of 515 in late October. This creates quite an opportunity for sellers who have their home on the market during the bustle of the holiday season. The decrease in homes for sale means less competition. Less competition means a better chance to sell homes.
If you have not been following real estate lately; welcome back. Although inventory has been at record high levels, the average sales price in Carlsbad has remained stable throughout the year. During the summer, sellers began offering more incentives to buyers and their agents in order to help sell their property, but have been unwilling to offer discounts in order to sell their property. This month will bring change.
Why Buy In December?
With the school term in full-swing and the hustle of the holiday season, buyers are less likely to purchase a home. November and December have seen as much as a 30% decrease in the number of sales compared to the months prior. Inventory has also built up due to the number of unsold homes during the summer months. With more homes currently on the market and fewer buyers to compete with, non-contingent buyers have a great opportunity to purchase their home at a great price.
Making A Lower-Than-Expected Offer
Negotiating a home successfully should leave everyone feeling like winners, which is the goal. There is no correct method for presenting a lower-than asking price offer, except that it must be handled skillfully. Similar to a lawyer building a strong case, make your offer with the idea that it will be accepted. Wishful thinking plus an unreasonable offer equals less-than ideal results.
However, remember to proceed with caution when making lower-than-asking price offers. This is a family’s home. If you offend the seller, whether by making an offer too low or with disagreeable terms, there will be repercussions. Also, take into account external motivating factors i.e. divorce, probate, corporate relocation or force sales. These will affect the seller's motivation to sell their property.
A Strong, Low Offer
Although your price may be lower than what the seller is expecting, create a stronger offer by removing contingencies from your contract. Present your offer with a pre-approval letter from a lender to show that you have strong financial capability. Write your time-frames with the seller's situation in mind. Closing in 30 days as opposed to 60 may hold intrinsic value to the seller.
Crucial Timing
Utilize the knowledge of a successful, seasoned professional to determine what leverage, if any, you have in making an offer. In your offer, amend the standard 72-hour timeframe that the seller has to respond to 24 hours. Consider that a majority of buyers will conduct their housing searches on the weekend, so plan on finalizing your negotiations before the weekend. The offer you have submitted can and will be used to move another interested party to submit an offer. This will compromise your bargaining power.
Should I always offer lower than list price?
No. You must consider what a property is worth to you before you begin negotiations. Real Estate is not strictly an investment or business commodity. If this is the home that you have been looking for, do not blow your chances by attempting to save a few thousand dollars.
Why Not Wait For The New Year?
Sellers must keep in mind that inventory increases during the first months of the new year, which could make selling a property more difficult. It may be ideal to finish negations at a fair price rather than delay until the new year. Here is the good news that you do not know: The recently record-high inventory has actually started its seasonal decrease. Although the number of sales decreases in the winter months, so does the number of homes for sale. As of November 23, there are 458 detached homes for sale in Carlsbad, down from a high of 515 in late October. This creates quite an opportunity for sellers who have their home on the market during the bustle of the holiday season. The decrease in homes for sale means less competition. Less competition means a better chance to sell homes.