Negotiating the best price when buying a home doesn’t need to feel like running through an obstacle course with a blindfold on. Yes, there are a lot of hurdles to jump if you want to get the best return on your real estate investment, but with a little research and the right real estate agent, you should be able to find the home of your dreams at a good price. We even have a Buyer’s Worksheet that can help get you started!
There are many factors that affect the selling price of a home. In a seller’s market like San Francisco’s, negotiating the best price is going to be tough, but it’s entirely doable given the right strategies and flexibility. One of our specialties at Danielle Lazier :: SFhotlist Team and Keller Williams San Francisco is helping both new and experienced San Francisco home buyers get the best price when buying a home.
The following new homebuyer tips can help you find a home that is within your price point. If you’re a homebuyer looking to buy a home in San Francisco and want further advice or have any questions, please don’t hesitate to reach out or do fill out the Buyer’s Worksheet! We’re happy to help.
1. Hire an Experienced San Francisco Real Estate Agent
Foregoing the costs of hiring a real estate agent when buying a home may at first seem like a way to save money. However, the amount of time and the lack of knowledge homebuyers will encounter when negotiating the price of a home will add up to substantial costs. This is especially true in a seller’s market. Understanding real estate and the real estate market is a full-time job that requires years of dedicated experience in order to know all of the ins and outs.
An experienced real estate agent will be adept at the negotiation process. They’ll know which areas will save you money and which will not, and can offer fully vetted advice that will help you get the best price when buying a home. For example, a good real estate agent will know whether your initial offer is going to be too high or too low.
You’ll also want to hire a real estate agent who is the right fit for you. In order to help our clients find the best fit, we at Danielle Lazier :: SFhotlist Team and Keller Williams San Francisco offer a no-obligation consultation in which we explore what you are looking for in a home and how we will go about finding the best home for you. If you love what our agents have to say and want to work with us, our real estate agents will commit to negotiating a price that’s within your budget and help you with financing options if money is tight.
2. Get Your Mortgage Pre-Approved
When you find a San Francisco home you love, you have to act fast before other homebuyers snatch it up. Make sure all of your finances are in order well before you begin the home buying process. If you’ll be selling a home at the same time as buying a new one, do you have the funds available to rent during the interim or do you have the funds to purchase before selling? Do you know how long it will take to get your mortgaged pre-approved? These are just some of the questions to consider — and that we help our clients answer.
Many home sellers will not even consider an offer from a buyer who does not have a preapproved loan. Plus, once you have your loan pre-approval, you will know what your budget is and what you’ll be able to afford. This will keep you from wasting time on listings that are out of your price range.
3. Be Aware of the Extras and Hidden Costs
The true cost of your real estate purchase is not just going to be the listing price of the home you’re buying. There are numerous little (and sometimes not so little) costs that many first time homebuyers don’t account for. Again, these situations are when hiring an experienced San Francisco real estate agent -- one who truly understands our dynamic market and how to get the most for your money -- will provide you with the industry know-how to maximize your budget.
There are also long-term costs to consider. Extra fees, such as Homeowner Association (HOA) dues, will add up over time and as such make the actual listing price of a home possibly more expensive than a home that may have a higher listing price but lower long-term costs. You’ll also want to consider the costs required for repairs, utilities, and potential increases in property taxes.
4. Explore Different Neighborhoods
You may think you know which neighborhood you’d like to live in, but many people make decisions based on emotions instead of practicality. Absolutely research all of the neighborhoods in which you’d think you’d like to live, but also get the opinion from a local real estate expert. A good real estate agent can help keep you level-headed and can also prevent you from getting “shiny new thing’ syndrome when buying a home.
Consider, also, that it is a real estate agent’s job to know local neighborhoods inside and out. Real estate agents understand better than anyone else what each neighborhood can offer. So while you may think your dream home will be found in a certain neighborhood, it may in fact be located in an up and coming area at a much cheaper price.
At Danielle Lazier :: SFhotlist Team and Keller Williams San Francisco we are proud of our team approach and can match you with an agent that is especially knowledgeable about your target neighborhoods.
5. Ask for What You Want
When buying a home, don’t be afraid to ask for what you want. Your Realtor knows how to to ask delicate questions in ways that don’t jeopardize -- and may even enhance -- negotiations with the home seller. Certain requests can save a seller time and money, and will therefore make you a more attractive buyer.
Before you start making your requests, go over them with your real estate agent to make sure that your demands are reasonable and that they won’t affect your position as a buyer. If you are able to get an offer accepted with an inspection contingency, it’s a good idea to wait until the end of the inspection period to make your requests. Again, consult with your real estate agent and they can expertly handle the negotiations for you.
Sasha Lupercio, buyer specialist at Keller Williams San Francisco, advises that when it comes to buying a home, the time is always now. You can never predict the San Francisco market. There are lots of people playing the game; you don’t want to be the one sitting on the sideline. She adds,
“We give clients options, based on experience, market data and our - intuition of where the range of price is going to land. As experienced Realtors, we’re able to base our knowledge off of previous transactions with both buyers and seller.. And while we layout all the options, the decision is ultimately up to buyer. We will advise on the offer, critique what is expected to be seen by the seller, and can be very clear on what it is going to take to create a winning offer. Yet we don’t like to sugarcoat things, as our goal is to find clients their dream home, and the last thing we want is to be misleading. Every situation is completely different from one transaction to another, and that’s where working with a Realtor who knows the local market becomes important.”
We at Danielle Lazier :: SFhotlist Team and Keller Williams San Francisco can help you act fast to secure the home of your dreams at the price you want. If you’re ready to buy a home in San Francisco, reach out for a consultation or complete our Buyer’s Worksheet and we’ll be in touch shortly. Let’s get started!
