How Much will the Seller Come Down on Price?

short-sale-sign-great-priceHome sellers want to get as much as possible for their homes. Home buyers want to get their homes for the least amount possible.  “Market value” is when buyers and sellers agree – even if one of them is a little reluctant. This is true universally, whether you’re in the market in San Jose, Saratoga, Los Gatos or anywhere in Silicon Valley (and just as true elsewhere in California or elsewhere in the world).

Real estate agents don’t control the value of the home. However, good agents can maximize the potential of the market. Homes are never worth just one set price. There’s usually a range within which terms (or conditions) can move the value up or down. It’s “price and terms”.

For instance, let’s say you have an upscale home that’s worth about 1.5 million, more or less. If an offer were to come in contingent upon the sale of another home, in a normal or balanced market, the seller would probably want more than the 1.5 because of the uncertainty. Perhaps that home would sell, if contingent, for 1.6 million (only for illustration). On the other hand, if an all-cash buyer showed up, could close in 5 days (I have seen it happen) and allowed a free rentback for a month, the home might sell for closer to 1.4 million – if the seller really needed a fast close to prevent foreclosure or to secure the deal on another home. It’s always about price and terms.

Want a good deal on price? Sweeten the terms.