Effective Negotiation Tactics for San Francisco's Housing Market
If you haven’t already heard, homebuyers in San Francisco are regaining some negotiating power. While this doesn't make it a buyer’s market, it does mean buyers may be able to ask for a little more. Sellers need to be ready for that possibility and know what they’re willing to negotiate.
Whether you’re looking to buy or sell a house, here’s a quick rundown of potential negotiations that may come up during your transaction. This way, you’re prepared no matter which side of the deal you’re on.
What Can You Negotiate?
Most aspects of a home purchase are on the negotiation table. Here are a few key options, according to Kiplinger and LendingTree:
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Sale Price The most obvious negotiable factor is the price of the home. Buyers don’t want to overpay, especially with tight affordability. Sellers who aren’t realistic about their asking price may need to consider adjusting it.
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Home Repairs Based on the inspection, buyers can ask the seller to make reasonable repairs. If the seller doesn’t agree, they might offer to reduce the home price or cover some closing costs so the buyer can handle the repairs themselves.
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Fixtures Buyers can request appliances or furniture to be included in the sale. Having the seller include items like a washer and dryer can reduce the buyer’s expenses. Sellers can use this as a bargaining chip to sweeten the deal.
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Closing Costs Closing costs typically run about 2-5% of the home’s purchase price. Buyers can ask the seller to cover some or all of these costs to reduce the cash they need to bring to the table.
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Home Warranties Buyers can request the seller to pay for a home warranty. This is beneficial for buyers concerned about maintenance costs after purchasing the home. For sellers, it’s a relatively inexpensive concession that can help close the deal.
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Closing Date Buyers might need a faster or extended closing window based on their schedule. Sellers can also negotiate for a timeline that fits their needs, finding a compromise that works for both parties.
The Role of Your Agent
Whether you’re a buyer or a seller, your real estate agent is crucial in the negotiation process. They handle conversations and advocate for your best interests. As Bankrate notes:
“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”
Agents can also gather valuable insights from discussions with the other party’s agent, which can be incredibly helpful at the negotiation table.
Buyers are regaining some negotiation power in today’s market. Buyers, knowing what levers you can pull will help you feel confident and empowered during your purchase. Sellers, being aware of potential buyer requests gives you the chance to think through your willingness to negotiate.
Want to chat more about what to expect and the options you have? Connect with a local real estate agent. Visit San Francisco Real Estate Agents for more information.
For more details about the current San Francisco housing market, check out SFAR Market Statistics or contact a local expert at the San Francisco Association of Realtors.
Feel free to reach out if you have any questions or need further assistance. Happy house hunting or selling!
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