For this townhome I sold in Santa Clara for $1,075,000, I was the agent for the buyers who were referred to me by another couple that also bought a home with me. Although the market has softened, inventory is quite low, so even though there is less to no competition and prices are down, there aren’t a lot of homes to choose from in this market.
It didn’t take them too long to find the right match, but there were a couple of places they liked, even places that got multiple offers due to the shortage of inventory, that came on the market at aggressive pricing. And, then there was a home that was overpriced for this market, but the seller just didn’t recognize that the market has changed, and was not being reasonable. That home is still on the market today, 116 days later. I wonder if they regret not taking our offer. Although, personally, I like this home better. 🙂
And, then this townhome came on the market in the same community as the overpriced townhome. We were the only offer, and were able to negotiate the price UNDER the list price. The transaction itself was smooth and seamless.
The key to this market is just finding the right balance between price and the interest rate to come up with a reasonable mortgage payment. It’s always a good time to buy, as opposed to throwing money away on renting, at the right price coupled with the interest rate.
In fact, when the market softens and there is no competition, the end game is that buyers get a better deal overall, as opposed to buying high with fierce competition. Buyers lock in the lower price, which also locks in a lower property tax, and can concentrate on paying down/off the mortgage and/or refinance when rates go down. And, if you are a cash buyer, it’s a great time to buy and get a good deal.
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