Let’s Make a Deal! 7 Things You Can Negotiate When Buying a Home—Beyond the Asking Price

When it comes time to negotiate the purchase of a home, there is one thing that everyone, regardless of whether they are purchasing their first home or their 11th, has in common: the desire to bring the purchase price down as much as they possibly can.

When it comes to purchasing a property, pricing is, of course, a significant factor. However, this is not the only aspect of the purchase that is up for discussion, and there are tactics for finding deals that could end up costing you more. The listed price is just one of several points of negotiation; there are many others.

According to Danielle Samalin, CEO of Framework Homeownership, “Sellers in the majority of the country are currently receiving numerous bids for their properties.” In today’s market, making an effort to negotiate a lower purchase price would probably not get you very far.

However, even in a market that favours sellers, there are a wide variety of opportunities to negotiate, such as demanding that the seller make repairs to the home or proposing a quick closing.

According to Ryan Dibble, chief executive officer of real estate company Flyhomes, “Tailoring your offer to fit the holistic needs of the seller is usually the greatest method getting your offer accepted.” “The price isn’t always the deciding factor, but it often is,” the speaker said.

So, what exactly is it that you are able to negotiate? When it comes to buying a new home, we consulted with industry professionals to find out which aspects of the purchase are open to negotiation.

1. Adjustments

When there is a lot of competition in the market, prospective buyers may feel pressured to forego getting a home inspection in order to move the transaction forward more quickly and win over the sellers. However, this is a precarious plan to undertake, since you do not want to be surprised by unforeseen maintenance issues once you have moved in.

It is in your best interest to proceed with the home inspection so that you can later utilise the results as a potential negotiating tool.

The national sales director of TD Bank, Scott Lindner, recommends that potential homebuyers “Make sure you attend and understand the findings of the home inspection.” “It’s always a good idea to comprehend any significant investments that would need to be made in the home,” the author advises. “… If there are things that need to be repaired or replaced in the near future, this is also a valuable tool for negotiating, especially if there are things that need to be done soon.

In the event that your inspection discovers any problems, you have the option of making it a condition of the sale that the sellers make any necessary repairs. Keep in mind, however, that it is not a guarantee that the sellers would agree to pay for all of the necessary repairs.

According to Christopher Arienti, the broker and owner of Re/Max Executive Realty in Franklin, Massachusetts, “First-time home purchasers sometimes feel that they can make an offer that is higher than the asking price and then recoup on the home inspection, asking for further credit or money off.” “This is not always the case,” is not an accurate statement.

2. It is time to finish up.

If you know that the seller’s timetable is not flexible and you have a flexible schedule yourself, you can make your offer more appealing to sellers by being honest about the fact that you have flexibility in your schedule.

Arienti advises, “Pay strict attention to the needs of the seller in regard to timetables,” and she continues, “Pay attention to the details.” “The majority of homeowners have a general concept of when they want or need to close on their homes. You can gain a lot in return for giving just a small bit of effort here.

Keep in mind that the majority of the time, you and the sellers are both dealing with the stress of moving and maybe purchasing another property, which is a difficult circumstance for everyone involved in the transaction. Your offer may be strengthened if you make the procedure easier and more convenient for the seller.

3. Costs associated with the closing

Closing expenses, sometimes known as those hidden fees that typically cost between 2 and 7 percent of the home’s purchase price, can be a significant hardship for buyers, particularly after they have forked over a sizeable sum of money as a down payment.

Consider asking the seller for assistance in covering closing costs rather than engaging in hardball negotiations on the list price of the home.

Not only the purchase price is important to sellers, according to Dibble; they also care about the net proceeds. “reduces cash needed to finish the transaction, which helps the seller by raising the likelihood that you will close the sale,” is the phrase commonly used to describe the effect of asking the seller for a credit toward closing expenses.

You can also make an offer that is greater than the seller’s asking price in order to compensate for the credit that the seller will provide you toward the closing costs.

4. Decoration If you are buying the property of your dreams and it has already been decorated to your taste, it is perfectly acceptable to inquire about the decoration, furniture, light fixtures, appliances, and any other components that you adore.

According to Samalin, “You can ask the seller to leave appliances or furnishings that you would otherwise have to buy,” and if the seller agrees, you won’t have to make those purchases.

The one and only catch is that, as Dibble points out, “this can sometimes complicate your credit, and occasionally it is staged furniture, which is not the seller’s to sell.”

5. Cleaning the house

There is no guarantee that a home that is brand new to you will be spotless. One strategy for overcoming the ick problem is to request that the sellers pay for a thorough cleaning before you move in.

According to Dibble, “there are always nooks and crannies that get neglected because of the furniture and appliances in the home,” and this is true regardless of how neatly a home is kept.

6. Warranty for the home

Homebuyers often find that purchasing a home warranty gives them a sense of relief. It pays for the cost of repairing or replacing main appliances in your new house if they become damaged, and it may also pay for repairs to the heating, ventilation, and air conditioning (HVAC), plumbing, and electrical systems.

According to Dibble, “it makes sense to negotiate for the seller to cover a house warranty as part of the buying process in some situations,” and this is something that buyers should consider doing.

It is possible for there to be a win-win situation for both parties involved when the seller pays for the warranty. This is because the warranty will cover the seller while the home is on the market for sale. If something has come up during the house inspection and the buyers are leaving it up to you to deal with it, this “ask” can be an effective way to get what you want.

7. Your own costs and obligations in this regard

When there are more buyers than sellers, buying can be difficult. According to Samalin, bidders are in a less advantageous position to negotiate when the sellers are receiving many bids.

You still have the ability to advocate for yourself by looking for the most favorable terms on your mortgage and any other bills you have. To begin, make contact with a number of different mortgage lenders so that you may evaluate your choices and determine which one offers the most favorable interest rate. Then you should inquire about any other fees that might be open to negotiation.

Samalin adds that there is no risk in attempting to negotiate the fees and expenses associated with the loan. “For example, title insurance can be quite pricey; therefore, you should inquire with your lender about the possibility of receiving multiple quotations.”