Listing Prices Have Become a New Starting Point

[Ken and Ari Walker]

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.

Click here to learn more about our company!

Best, Ken – The Guys in the White Hats

Hard Money Lead Loan Originator at Family owned and operated Sun Pacific Mortgage & Real Estate, serving all of California since 1988!  707-523-2099   www.Sunpacificmortgage.com

CA DRE License #01858042 and NMLS #1221130

 

Note:  Get our financing despite bad credit, difficult to prove income, property a fixer, etc.!  We finance Jumbo loans, Bridge and short-term loans, Owner Occupied purchases and refinances, investment purchases and commercial.

The content of this blog contains general advice only and does not consider individual financial circumstances, desired loan amounts or existing real estate or lending transactions. This information is intended for licensed Real Estate Agents and licensed Lenders/Mortgage Brokers and is posted on our company website and specific blog sites with the express purpose of reaching such licensed individuals.

[Admin]

Very true. I live in Meridian, Idaho which is 5 min. from Boise. I got preapproved to finance another investment property here in Idaho (currently own my home and one rental) and I made 4 offers. The first was at full price. Obviously not dice). The second house my offer was $1500 over and there were literally 14 higher offers the same day. On the third house the offer I made was $5k over. The fourth home the offer I made was $15k over list price and I found out from my Realtor that I was $40k below the offer they accepted. Absolutely insane!