There are a number of ways that buyers can get a good price for a property, even in this heated market. Three things a buyer can look for are 1. an out of town listing agent; 2. an overpriced property; or 3. an unusual issue with a property.
The first two things – an out of town agent and an overpriced property – often go hand in hand. My clients wanted to make a low ball offer on a home in Clarendon Heights at the top of the market. One thing that helped me was that the home was listed by an out-of-town agent who didn’t know the SF market, which provided an opportunity to aggressively negotiate. His lack of knowledge of SF real estate resulted in him listing the property for $2.5M and after 28 days, reducing it to $1.7M. It then sat on the market for another 50 days. By this time the sellers were anxious. My clients’ low ball offer, which was accepted, was almost $150,000 under the asking price. (After further negotiation of inspection items, the final sales price was almost $200,000 under the asking price).
The third thing to look for is an unusual issue with a property that may scare buyers away. At a Pacific Heights condo where my buyer was making an offer, it turned out that the second bathroom in the condo was formerly a janitor’s closet, common property of the HOA. It had been annexed with permission by an earlier HOA to turn the space into the owner’s second bathroom. However, under the law, this is not allowed. This situation created a great buying opportunity for my buyer. As all the other buyers dropped out due to their concern about this issue, I was able to negotiate a great price for my client and recommend an easy resolution of the situation so he could keep the bathroom as part of his unit.
If buyers look for one of these three things, they are more likely to be able to negotiate a good deal! If you would like to have me help you find some, don’t hesitate to call.