You are buying a home in Los Angeles and are looking for that ever elusive deal. I hear it all the time. No matter the market everyone likes to think they are getting one. And in any market remember that the seller’s goal is the opposite. They want to net as much money as they can.
The buyer is obviously at a bigger disadvantage in a sellers’ market. Maybe the goal should not be to get a deal but to get something that has worth to you. The home is only worth what a buyer is willing to pay for it. The old adage, “one man’s trash is another man’s treasure” applies here.
In a strong sellers’ market that we are experiencing now there are no “deals.” The average sold price vs list price is almost 100% in Los Angeles County, so offering an unreasonable amount is probably not even going to get you a counter offer. There is a dance that you can do, but you need to encourage the seller to be your partner.
The strategy for buying a home is simple. If you really love the property, and it compares well with similar properties that have sold recently, make as close to asking offer as possible. Or, put yourself in the seller’s shoes and make an offer that you would at least consider if you were in their place. Certainly if there are other buyers in the mix anything less than asking is probably going to put you out of the running. Don’t be surprised if your “deal” ends up being more than the list price
If you are not madly enough with the place you can afford to try and get a “deal”. But don’t go crazy. You still need to encourage a counter offer that will get you closer to the top price you are willing to pay. Remember, the seller is going to have a bottom price.
In this competitive market if you love a property and are the successful buyer you have gotten yourself a deal. If you don’t love the property walk away. This will end up being someone else’s deal.
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