The classic battle between buyer and seller has recently tipped in the favor of the buyer. With inventory at a 20 year high, the buyer has more leverage than ever in price negotiations for a home. The media plays into the frenzy by making buyers think they can get property for pennies on the dollar. Unfortunately for them, 99% of the time, that is not the case. Even with bank owned properties, there is only so much of a hit the bank is willing to take. In Big Bear Lake, the difference between the listing and selling price is right around 7%. If a property is priced well , it will still sell for a good price.

When I am working with a buyer, I usually recommend starting out 10% low and working from there. However, in many cases, no matter how many facts you present to a buyer, they still want to start out with a very low offer. In cases like this, it is very important to make every other facet of the offer rock solid if you are to have any chance of getting anything close to the price you are after. For instance, a deposit of at least 3% will go a long way in convincing the seller your buyer is serious about purchasing the home in question. Providing a pre-approval letter up front is also a wise move. Also, the lower they go, the less likely the seller is going to do things like repairs or helping with closing costs. It is a definite trade off which your client needs to be aware of.

It never hurts to try, but hopefully your buyers will realize the odds and work with you and the seller to come to a price that everyone is happy with. With low interest rates and less offers, it is a fantastic time for qualified buyers to get a great deal they that would not have been possible a year ago. Within reason:)

Izzy Barden