The last the months of Carlsbad's selling year are considered to be the best time to buy real estate.
Buyers have secured the lowest prices for property of the year during the winter selling season. Demand is often lower when compared to the summer months and sales can slow by as much as 30 percent.
Sellers reduce their prices to attract buyers and great home buys are made. So to kick-off the home shopping season, the following is a homebuyer's primer.
Get ready
Prequalification is a necessary first step before entering the current real estate market. It is encouraged to talk with a local, experienced lender that can brief you on your options.
A smart homebuyer should know how much they are going to use as a down payment, their credit score, any outstanding debt they have and how much they are willing to pay per month. The mortgage professional will furnish you with a pre-qualification letter and give you a price range for your home shopping.
Without it, many buyers might find themselves looking at homes they cannot afford only to be disappointed when they see the monthly payment estimate.
Slim pickings
The local housing market could be compared to the last hours of a two-day only sale at Macy's, all of the best buys have been taken and what is left is being fought over by three shoppers.
Carlsbad has fewer than three months of sellable inventory, meaning it would take three months to sell every Carlsbad home. Inventory levels have been low since May.
Each October, Carlsbad normally sees a buildup of unsold homes from the summer that increased competition, and then softer prices in the winter. A normal winter market will have six to eight months of inventory.
If current low levels hold at three months through the winter and mortgage rates stay at their current levels, home prices could be expected to rise.
Discounts: How much can I negotiate?
How you structure your offer depends on the price of your home. A buyer making an offer on a home with four bedrooms listed for less than $450,000 in North County can expect to face multiple offers.
Homes in this price range are routinely selling for more than the asking price. The overbidding is a result of too few homes for the number of available buyers.
Competitive bidding from FHA and VA buyers has created an almost fevered home buying market in the lower price ranges. A lower than asking price offer most often leaves a buyer homeless.
Single family detached homes in Carlsbad start around $475,000. Homes priced between $475,000 and $700,000 are routinely selling for full price.
Even the toughest negotiators are securing no more than a 2 percent discount off of the asking price.
Homes priced between $700,000 and $850,000 have less competition. A buyer can expect a modest price negotiation depending on a number of factors. The average discount is 4 percent of the asking price, up to $35,000.
Buyers are negotiating fantastic deals in the luxury home market. Properties priced from $1 million to $1.3 million haven seen discounts from $75,000 to as much as $125,000 off of the asking price.
How to offer low
Negotiating successfully should leave everyone feeling like winners. An experienced real estate professional will help you gather relevant facts and strategize an appropriate approach given the specific type of home.
Arguing high inventory and possible future decline in pricing could be effective for the $1.1 million to $1.5 million luxury, semi-custom home market in La Costa. But to argue the same way for a unique beach house in the same price range, or for most Carlsbad homes that are less than $700,000, might prove futile.
Wishful thinking with an unreasonable offer will result in a less than ideal result.
Buyers can strengthen their offers by removing contingencies from the contract. Present your offer with a pre-approval letter from a lender in order to show that you have strong financial standing.
Structure your closing timeframe around the seller's situation. Closing in 60 days, as opposed to 30, may hold intrinsic value to the seller.
Also, giving the owner several days to consider your offer creates less tension. A 12-hour, “you better answer or I walk” timeframe for a response to your offer is unrealistic and creates distrust.
Create a comfortable environment and an offer that says “this is a fair deal” and you will get the home you want.
For more information, contact Tyson Lund at (760) 438-0800 or [email protected].
Buyers have secured the lowest prices for property of the year during the winter selling season. Demand is often lower when compared to the summer months and sales can slow by as much as 30 percent.
Sellers reduce their prices to attract buyers and great home buys are made. So to kick-off the home shopping season, the following is a homebuyer's primer.
Get ready
Prequalification is a necessary first step before entering the current real estate market. It is encouraged to talk with a local, experienced lender that can brief you on your options.
A smart homebuyer should know how much they are going to use as a down payment, their credit score, any outstanding debt they have and how much they are willing to pay per month. The mortgage professional will furnish you with a pre-qualification letter and give you a price range for your home shopping.
Without it, many buyers might find themselves looking at homes they cannot afford only to be disappointed when they see the monthly payment estimate.
Slim pickings
The local housing market could be compared to the last hours of a two-day only sale at Macy's, all of the best buys have been taken and what is left is being fought over by three shoppers.
Carlsbad has fewer than three months of sellable inventory, meaning it would take three months to sell every Carlsbad home. Inventory levels have been low since May.
Each October, Carlsbad normally sees a buildup of unsold homes from the summer that increased competition, and then softer prices in the winter. A normal winter market will have six to eight months of inventory.
If current low levels hold at three months through the winter and mortgage rates stay at their current levels, home prices could be expected to rise.
Discounts: How much can I negotiate?
How you structure your offer depends on the price of your home. A buyer making an offer on a home with four bedrooms listed for less than $450,000 in North County can expect to face multiple offers.
Homes in this price range are routinely selling for more than the asking price. The overbidding is a result of too few homes for the number of available buyers.
Competitive bidding from FHA and VA buyers has created an almost fevered home buying market in the lower price ranges. A lower than asking price offer most often leaves a buyer homeless.
Single family detached homes in Carlsbad start around $475,000. Homes priced between $475,000 and $700,000 are routinely selling for full price.
Even the toughest negotiators are securing no more than a 2 percent discount off of the asking price.
Homes priced between $700,000 and $850,000 have less competition. A buyer can expect a modest price negotiation depending on a number of factors. The average discount is 4 percent of the asking price, up to $35,000.
Buyers are negotiating fantastic deals in the luxury home market. Properties priced from $1 million to $1.3 million haven seen discounts from $75,000 to as much as $125,000 off of the asking price.
How to offer low
Negotiating successfully should leave everyone feeling like winners. An experienced real estate professional will help you gather relevant facts and strategize an appropriate approach given the specific type of home.
Arguing high inventory and possible future decline in pricing could be effective for the $1.1 million to $1.5 million luxury, semi-custom home market in La Costa. But to argue the same way for a unique beach house in the same price range, or for most Carlsbad homes that are less than $700,000, might prove futile.
Wishful thinking with an unreasonable offer will result in a less than ideal result.
Buyers can strengthen their offers by removing contingencies from the contract. Present your offer with a pre-approval letter from a lender in order to show that you have strong financial standing.
Structure your closing timeframe around the seller's situation. Closing in 60 days, as opposed to 30, may hold intrinsic value to the seller.
Also, giving the owner several days to consider your offer creates less tension. A 12-hour, “you better answer or I walk” timeframe for a response to your offer is unrealistic and creates distrust.
Create a comfortable environment and an offer that says “this is a fair deal” and you will get the home you want.
For more information, contact Tyson Lund at (760) 438-0800 or [email protected].