Buying a home is as exciting a journey as it is nerve-wracking. Buying a home in Los Gatos, one of California’s most competitive real estate markets, is all the more complicated. In addition to understanding the local market conditions, you must also create a competitive offer and negotiate yourself to a great deal. The following guide will help you negotiate your home purchase like a pro and get the Los Gatos home of your dreams.
Conduct Market Research
The first step to a successful negotiation is familiarizing yourself with the Loa Gatos real estate market. You should enlist the help of a professional like Los Gatos CA real estate agent Kelly Dippel for this. With a knowledgeable agent by your side, you can find out the current market conditions and pricing trends. The median listing home price in Los Gatos, for instance, was $2 million in August this year. This figure is 12.5 percent lower than the median sale price in August 2022. Your agent can help you factor such data into your offer so you go into the negotiations informed.
Understand the Seller
The next step is to understand the seller’s motivations. In August 2023, Los Gatos was a seller’s market. This means there were more buyers than homes in the area that month. Your agent can help you understand how the market is leaning at a particular time, which can inform your negotiating strategy. The selling trend tells you whether the seller is in a hurry to close, is fielding multiple offers, and more.
Set a Budget and Get Pre-approved
Before you start negotiating for Los Gatos homes for sale, you need to know what you can afford. This is best done by assessing your financial situation and getting pre-approved for a mortgage. Doing this tells you the type of home you can afford. It also helps you narrow down your non-negotiables and priorities, including the property condition, amenities, and location. Furthermore, a mortgage pre-approval letter strengthens your negotiating power because it tells the seller you are a serious buyer.
Inspect the Property
Never begin negotiations until you have inspected a property. You must know whether the home is ready to move into or requires renovations or repairs. If it needs fixing up, you can leverage this during negotiations to ask for seller concessions like credits or repairs or negotiate a lower price.
Prepare an Offer
At this point, you know the local market condition and the seller’s motivation. You know what you can afford and the condition of the home. It is time to work with your agent to prepare an offer. The offer must reflect your understanding of the market and remain within your budget while being competitive enough to help you close the deal. Make sure to include all contingencies in your offer, including home inspections.
Negotiate Professionally, Without Emotion
Finally, keep a level head during negotiations. It is important to let your agent steer the conversation because they are less likely to lead with emotion. Try to remain open to compromise as long as you do not relent on your non-negotiables or significantly overshoot your budget.
Talk to Kelly About Buying a Home in Los Gatos
Negotiating a purchase deal in Los Gatos can seem daunting, especially without the help of a professional. Kelly is a skilled Los Gatos real estate agent and part of the exclusive 1 percent of agents in the world who are Coldwell Banker® International Society of Excellence members. She has years of experience in Los Gatos real estate and can help you negotiate the home of your dreams. Call her office today to learn more.