Gone are the days, at least for the immediate present, when the listing price was the point where the buyer started from and worked downward in the negotiating process. Today, in the Peninsula and Northern Bay Areas, with the record-low supply of homes for sale coupled with very strong buyer demand, the list price is the beginning of a bidding war on many homes.
According to the Home Buyers and Sellers Generational Trends report just released by the National Association of Realtors, 45% of buyers paid full price or more.
With this market you just can’t shop for a home with the old-school mentality of refusing to pay full price or more for a house. When navigating the housing markets in areas of San Francisco, San Mateo, Contra Costa and the others, think of the list price as the minimum the seller will accept in many cases. The list price has become the floor of the negotiation, not the ceiling. Know that if you really love a home in the Bay Area, be prepared to offer above asking, while still staying within your budget. That’s a tall order in today’s real estate market!
As in all tricky financial situations, consult a professional and listen to their advice. And, if you are looking to make a stronger offer with shorter closing time or virtually all-cash offer, consider Private Money loans for your mortgage! Call Sun Pacific Mortgage at 707-523-2099 to discuss your situation and get experienced advice and support from a reputable family-owned and operated lending company, not just for Solano, Santa Clara and other Northern CA areas but for all California real estate.
