If you haven’t already heard, homebuyers are regaining some negotiating power in today’s market. And while that doesn’t make this a buyer’s market, it does mean buyers may be able to ask for a little more. If you’re buying or selling, it’s helpful to know what’s up for negotiation so you are prepared. From prices and repairs to closing costs and appliances, there are various levers you can pull during the deal.
Whether you’re looking to buy or sell a house, here’s a quick rundown of potential negotiations that may pop up during your transaction. That way, you’re prepared no matter which side of the deal you’re on.
What Can You Negotiate?
Most things in a home purchase are on the negotiation table. Here’s a list of just a few of those options, according to Kiplinger and LendingTree:
Sale Price
The most obvious is the price of the home. And that lever is being pulled more often today. Buyers don’t want to overpay when affordability is already so tight. And sellers who aren’t realistic about their asking price may have to consider adjusting their price. When negotiating the sale price, your agent takes all aspects of the home into account, including the condition of the home, the surrounding neighborhood, and comps in the area.
Home Repairs
Based on the inspection, a buyer is within their rights to ask the seller to make reasonable repairs. If the seller doesn’t want to do that, they could offer to reduce the home price or cover some closing costs, so the buyer has the money to take them on themselves. In an article for Realtor.com, Cathie Ericson writes that some of the most common repairs buyers request are electrical wiring, water pipes, roof repairs, and updating heating and cooling systems. While a seller might not agree to these repairs, your agent can always negotiate repair credits:
“Rather than having the seller coordinate and pay for the work, ask for a “repair credit” instead, which means the buyer will knock the amount of the repair off the home price.”
Fixtures
Buyers can also ask for appliances or furniture when the house changes hands. Having the seller throw in the washer and dryer cuts down on expenses the buyer would have when moving in, especially if these are higher-end or newer appliances. And if you are selling, leaving your existing appliances or unwanted furniture behind often sweetens the deal for your buyer. In addition, offering up your current furniture or appliances to buyers can be a cost saver, as you don’t have to stress about added moving costs for heavy items.
Closing Costs
Closing costs typically run about 2-5% of the home’s purchase price. A buyer’s agent can ask the seller to pay for some or all of these expenses to offset the cash the buyer has to bring to the table.
Home Warranties
Buyer’s agents can also request the seller to pay for a home warranty. This is great for buyers worried about the maintenance costs that may pop up after taking possession of the home. And since this concession usually isn’t too expensive for the seller, it can be a good option for both parties.
Closing Date
Almost everything in a home sale can be negotiable–including the closing date. If you are a buyer, your agent can negotiate a faster or extended closing window based on your timetable. The seller can also advocate for what they need based on their move to find the right compromise.
Letting Your Agent Handle Negotiations
One thing is true whether you’re a buyer or a seller, and that’s how much your agent can help you throughout the process. Your agent is your go-to for any back-and-forth. They’ll handle the conversations and advocate for your best interests along the way.
As a buyer, knowing what elements your agent can negotiate for you can help you feel confident and empowered going into your purchase. And for sellers, having a heads up of what they may ask for gives you a chance to think through what you’ll be willing to offer and work it through with your agent.
