Every time our market changes, the way we negotiate for a buyer or seller can change a bit.
This year we have had a very active year and while it should be an all-out seller’s market, we are still seeing a few trends worth noting (I’ll do a separate blog post for buyers tomorrow):
-When a home is staged well, priced within range its market value, is in good condition and has average/above average upgrades, the home can expect to get 99% of the list price.
-If the home has a pool and above average upgrades, the home is in higher demand with buyers. There is also more demand for homes listed under $180k. Thus, negotiations can be pushed to be closer to the list price and the overall “Net to Seller”*.
-*”Net to Seller”: As a sign of the times, some buyers have come up with their down payment, but require the seller to contribute to their closing costs to close the deal. In September, 42% of our closed sales had the seller contributing to the buyer’s closing costs. The average contribution to a buyer’s closing costs range from 2-3% of the sales price.
-Lastly, get good help! Your agent should be able to discuss with you the pros and cons of each offer, provide an estimated net proceeds worksheet, and review what each loan type means in terms of risk/odds of closing escrow successfully. We go a step further and call the buyer’s lender. It can prove to be very informative for our sellers.