What To Negotiate When Buying a House

Even in this crazy seller’s market, you can still negotiate. Whether you are a first-time home buyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it is necessary to ensure you are getting the best possible deal for your money.

You can ask and the seller can always say no but they might say yes. Be strategic and only ask for things that are a must. The key is PATIENCE. In a seller’s market, if you want to submit an offer below asking price and have several requests that lower the seller’s net profit, you may have to look at more homes than normal to find the home you want with a seller that will negotiate.

1. Closing costs. Your closing costs are determined by a variety of factors, but you can expect it to be between about 3% – 5% of the purchase price. In a seller’s market, you may need to raise the price of your offer to cover this additional cost so that the seller’s net profit is the same or greater.
2. Furnishings. Love how the seller has furnished and decorated the home? Buyers often negotiate keeping couches, fixtures, landscaping items, patio furniture, appliances, and more. And many sellers agree, wanting to make the home more appealing. If you are financing the home, this should be handled separately as a personal property sale between the seller and buyer but your agent can note it in the offer to document the agreement.
3. Inspection and closing timing. Buyer offers that include a quick inspection and close timeline are often more attractive to sellers who have been going through the process for far too long. Just ensure you allow yourself ample time to get your financing in place, title research to take place, and always complete proper, thorough inspections.
4. Home warranty. Sellers will often agree to pay the premium on the home warranty at closing and then hand it off to the new homeowner, who is responsible for the deductible on any future claims. Typically this covers mechanical systems, plumbing, and appliances, not structural or cosmetic problems. It also does not replace Home Insurance coverage.
5. Repairs. Your inspection may uncover small or large repairs needed to bring the home up to standard. You can negotiate to have these items fixed before closing by the seller.

As always, I am here to walk you through the process and negotiate on your behalf.