Late September May Be the Best Time to Buy in San Francisco; More Listings Are Sitting; Why Buyers Should Negotiate the Financing Too
There is a window in real estate that buyers routinely underestimate.
It is not January.
It is not the spring frenzy.
And it is definitely not the weekend when every other buyer suddenly decides they are
ready.
For several markets — including San Francisco — late September has historically
been one of the better periods for buyers to find negotiating opportunities.
That does not mean every house is suddenly cheap.
It means the balance between seller motivation and buyer competition can get more
interesting.
And this year, that matters even more.
I. THE BUYER WHO STAYED IN THE MARKET MAY
HAVE MORE LEVERAGE
A lot of would-be buyers have stepped back.
Housing costs remain high, affordability is still difficult, and many buyers are simply
tired.
That is frustrating if you are trying to sell.
But if you are still shopping?
Less competition can be an opportunity.
A house that would have attracted ten buyers in another environment may attract three.
A listing that did not sell in the first weekend may suddenly have a seller willing to
discuss terms.
A property sitting for 30 or 45 days can create a very different conversation than a
brand-new listing.
That is why I would not automatically interpret slower sales as:
“Nobody wants real estate.”
I would interpret it as:
“The buyer who is still prepared may have more room to negotiate.”
II. SAN FRANCISCO IS ESPECIALLY INTERESTING
RIGHT NOW
Late September can create an interesting window for San Francisco buyers.
That does not mean every San Francisco property becomes negotiable.
We have already seen this year that desirable single-family homes can still attract
aggressive competition.
But San Francisco is never one market.
A beautiful single-family home in a highly sought-after neighborhood can behave
completely differently from:
a condo with a high HOA,
a TIC,
a property with insurance issues,
an unusual building,
or something that simply missed the market on price.
That is where a good buyer can get strategic.
The question becomes less:
“How much under asking can I offer?”
And more:
“What does this seller actually care about?”
III. PRICE IS ONLY ONE THING YOU CAN
NEGOTIATE
This is one of the biggest missed opportunities I see.
Buyers focus almost entirely on the purchase price.
But a real estate transaction has multiple economic levers.
A seller may be willing to help with:
Closing costs.
A rate buydown.
Repairs.
Credits.
Timing.
Or simply a lower purchase price.
Those things are not financially identical.
For example, suppose the seller is willing to give up $15,000 to make the deal happen.
You could ask for a $15,000 price reduction.
Or, depending on the loan program and contribution limits, some or all of that money
might potentially go toward allowable closing costs or reducing the buyer’s interest rate.
Which is better?
Run the numbers.
Do not guess.
Sometimes reducing the purchase price creates the best long-term outcome.
Sometimes preserving $15,000 of the buyer’s cash is much more valuable.
And sometimes lowering the monthly payment is what turns a borderline purchase into
a comfortable one.
IV. THE BEST NEGOTIATION STARTS BEFORE THE
OFFER
This is why I want buyers prepared before they find the property.
Know your maximum payment.
Know your comfortable payment.
Know how much cash you actually want to use.
Know whether seller credits would help.
Know whether the property itself creates financing issues.
And get the financing as far through underwriting as possible.
Because once you find a motivated seller, you want to be able to move.
You do not want to spend four days figuring out whether your loan works while
someone else submits a cleaner offer.
Opportunity favors the buyer who already did the homework.
THE BOTTOM LINE
Late September can create some interesting opportunities for buyers, particularly in
markets where listings have been sitting and sellers are becoming more motivated.
But the opportunity is not simply:
“Offer less.”
The better question is:
“How can we structure this transaction so the buyer gets the most value?”
That may mean price.
It may mean credits.
It may mean financing.
It may mean timing.
Or it may be a combination of all four.
Because in a slower market, the buyer who negotiates intelligently can sometimes
accomplish much more than the buyer who simply throws out a low offer and hopes it sticks.
About Michael Belfor
Michael Belfor is a Branch Manager and Loan Originator with approximately 24 years of mortgage experience.
He has been recognized in American Pacific Mortgage’s President’s Club and among the company’s Top 1% producers since 2017.
Michael works with homebuyers, homeowners, investors and real estate professionals on conventional, jumbo, FHA, VA, down-payment assistance, self-employed and Non-QM financing, DSCR/investment loans, TICs, condos, renovation financing and other complex mortgage scenarios.
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