September 3, 2020
What to Negotiate When Buying a Home
Buying a home is a major financial decision, and, for many, is the biggest financial decision they will make.
Prior to starting the buying process, it’s important to know what you can negotiate as it can save you money, headache and even time on potential repairs. After all, you are the buyer. The worst that can happen is the seller or Realtor rejects the negotiation.
Before you consider potential negotiations to use during your purchasing process, speak with your Realtor on whether you are house searching in a buyer’s or seller’s market. If you’re in a buyer’s market, your negotiation offers will likely stand stronger.
Here are four negotiation points to consider when buying a home:
- House pricing
One of the most common negotiation starting points is the price of a home. If you are considering a home, but it lacks certain key aspects you were searching for, or maybe there are potential repairs needing to be done, it is always worth discussing a lower price. Consult with your Realtor about the average pricing and appraisal of nearby homes.
- Flexibility on closing dates
The move-in process is not completely on the buyer. If you’re waiting on a lease to end, in need of extra time for movers or unexpected delays, do not hesitate to ask for flexibility in the closing dates. In some cases, sellers could even be willing to buy out the remaining balances due on a lease if it means their home is moved into quicker. This negotiation tactic should be discussed with your realtor as it may not be needed.
- Closing cost coverage
Many first-time buyers will forget the closing costs during the signing process. Before you can move in, there are additional costs needed to complete the sale. If you are a first-time buyer, especially in a buyer’s market, it could save you hundreds of dollars to ask if the seller would cover even just a small percentage of the closing fees.
- Repairs and cosmetic updates
Fresh coat of paint needed? Is the porch a little too old for your comfort? Do any wires need to be grounded? These types of repairs and cosmetic finishes can eat into your budget after the moving process is complete. Not everyone wants a fixer-upper, and that’s ok! Move-in ready homes have a huge appeal, and it can be worth it to negotiate for finishing touches to be completed by the seller in order for you to buy the house. And most important, you need a home inspector to assess the home to see what repairs might be needed.