If you haven’t already heard, homebuyers are starting to regain some negotiating power in today’s market. While this doesn’t make it a buyer’s market, it does mean buyers might have the ability to ask for a bit more. As a result, sellers need to be prepared for this possibility and understand what they are willing to negotiate.
Whether you’re looking to buy or sell a house, here’s a quick overview of potential negotiations that may arise during your transaction. This will help you be prepared, regardless of which side of the deal you’re on.
What Can You Negotiate?
Most aspects of a home purchase are open for negotiation. According to Kiplinger and LendingTree, here are a few options to consider:
- Sale Price: The most obvious aspect is the price of the home, and this is being negotiated more frequently today. Buyers are cautious about overpaying, especially with tight affordability. Sellers who are not realistic about their asking price might need to consider adjusting it.
- Home Repairs: Following the inspection, a buyer has the right to request that the seller make reasonable repairs. If the seller is unwilling to do so, they might offer to reduce the home price or cover some closing costs, allowing the buyer to handle the repairs themselves.
- Fixtures: Buyers can also request that appliances or furniture be included in the sale. Having the seller include items like the washer and dryer can reduce the buyer’s moving expenses. As a seller, you could leave your existing appliances to make the deal more attractive for the buyer and get new ones for your next home.
- Closing Costs: Closing costs usually amount to about 2-5% of the home’s purchase price. Buyers can request that the seller cover some or all of these expenses to reduce the amount of cash the buyer needs to bring to the table.
- Home Warranties: Buyers can also request that the seller pay for a home warranty. This is beneficial for buyers concerned about potential maintenance costs after moving in. Since this concession is typically not very expensive for the seller, it can be a favorable option for both parties.
- Closing Date: Buyers can request a faster or extended closing period to fit their schedule. Likewise, the seller can express their needs based on their moving timeline to reach a suitable compromise.
Whether you’re a buyer or a seller, one thing remains true: your agent is invaluable throughout the process. They are your primary contact for any negotiations, handling discussions and advocating for your best interests. As Bankrate notes:
“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”
Agents can also gain insights from their conversations with the other agent, uncovering what the buyer or seller is seeking. This information can be extremely valuable during negotiations.
Bottom Line
Buyers are starting to regain some negotiation power in today’s market. Buyers, understanding the various levers you can pull will help you feel confident and empowered during your purchase. Sellers, knowing in advance what buyers might request allows you to consider what you’re willing to negotiate.
Interested in discussing what to expect and exploring your options? Let’s connect.
