When you find yourself ready to buy a Santa Clarita home, you’ll want to negotiate the best deal possible. It’s been a sellers’ market in the Santa Clarita real estate market, and as such buyers have been pressed to deal with multiple offers and even making offers above the asking price just in order to be selected as the buyer.
While the inventory in Santa Clarita is growing, creating more of a selection of homes to choose from, you might ask yourself, “if it’s a sellers’ market, what kind of negotiating tips could I possibly give you?” Take note of my answers to that question below, I’ll give you a lengthy list of items you could negotiate to your benefit. Keep in mind that all home sales are unique and there are many influencing factors to consider before determining the best course of action. As always, ensure you’re working with a professional real estate agent who will guide you through best course of action in your offer on any given home.
Possible Sources For Saving Money When Buying A Santa Clarita Home:
1) Ask for seller to pay for your one year home warranty; if there’s a swimming pool/spa ask about that being included, too.
2) Ask for seller to pay for your closing costs. An average rule of thumb credit is about 3% of the closing costs. Are you offering full price on a home that’s been listed for 30+ days, 60-90+ days maybe? In a sellers’ market you can still find sellers that will pay for your closing costs via a credit.
3) Identify properties that are either (or all of these) over priced, listed for a long time, in a bad location, need work some buyers aren’t willing to do, and make a lower offer. Perhaps your agent can find out if there’s other interest or none at all… and you can formulate a % under the asking price to offer the seller. It’s a sellers’ market with under 600 homes for sale in the entire Santa Clarita Valley… that’s under a 2 month supply of homes. You can still find sellers that will negotiate their price though.
4) Short sales are a great source for savings at times. Some are listed for sale below market value. While I have a few rants about that… you may want to consider these properties. Often times the seller is detached from the final outcome of what the home sells for. If you identify certain short sales that fit your criteria, you may want to offer even less and see if the seller accepts. Just remember though that on short sales, the lien holder(s) need to approve the final sales price.
5) Show your seriousness and possibly save money. Use your initial deposit (earnest money deposit) as a way to show the seller you’re serious and ready to buy their home. Perhaps negotiate a few items to your benefit when leveraging the higher deposit…such as price, home warranty, closing cost credit, etc.
6) Time frames. Use the home inspection and loan contingencies to your advantage, whichever that way is. If there is stiff competition from other home buyers, you may want to offer shorter time frames in your home purchase. If there’s a lack of competition, you may want to extend your time frames out a bit, for instance a longer loan contingency period, especially if you have some issues in the loan qualifying department to workout with your lender. Time frames are a great way to negotiate your home purchase.
There are countless other ways to potentially save money on a home purchase in the Santa Clarita Valley, such as lender credits, rate buy downs, HOA fees paid by seller, and the list goes on and on. Saving money requires an expert to help you, and a set of facts that each home presents. As you identify homes to pursue, your Santa Clarita Realtor will be able to guide you through the money-saving steps to put you in the best position possible. It’s not always possible to walk-away saving money when buying a home, especially if it’s a sellers’ market and you had to increase your offering price due to multiple offers from other home buyers.
