Recent asking and closing gaps show why negotiation starts before the offer is written.
The question I hear most is how aggressive an offer really needs to be in San Francisco, CA. My answer is that you should let recent closing pressure set the tone, then protect yourself with clear limits.
Recent closings in San Francisco, CA reached about 111.4% of asking, and a typical closed price was $1,400,000 last month. The typical asking price among active homes was $1,195,000, and homes that recently went under contract carried a typical asking price of $1,288,000.
I would not approach negotiation as if the list price alone tells the full story. In San Francisco, CA, the spread between active asking, contract pricing, and final closing results says the stronger homes are pulling buyers upward before the deal is done. Sellers can use that same pattern to judge how serious early interest really is.
Write offers from likely closing value, not from sticker shock. Decide in advance which terms you can strengthen and which protections you will keep. If you are selling, measure each offer against the recent closing pressure and respond with a strategy, not just a counter number.
