The price you see on a home listing is only the beginning of the conversation. Once you decide you're ready to make an offer, there may be more flexibility within the transaction than you realize. What you can negotiate will depend on the property, the seller's priorities and what's happening in the local market, but knowing where those opportunities may exist can help you approach the purchase more strategically. Before you assume something is nonnegotiable, it helps to know what may actually be on the table.
Purchase Price
Of course, the price of the home is one of the biggest pieces of the negotiation.
Whether there's room to offer below the asking price depends on several factors, including recent comparable sales, how the home is priced, its condition, how long it has been on the market and whether other buyers are interested.
A home that has been listed for several weeks with little activity may leave more room for negotiation than a newly listed property receiving multiple offers.
Rather than automatically deciding to offer a certain amount above or below the list price, it's important to evaluate the individual property first.
Seller-Paid Closing Costs
The purchase price isn't the only place buyers may be able to save money.
In some transactions, a buyer can ask the seller to contribute toward certain allowable closing costs. This can reduce the amount of cash the buyer needs to bring to closing, which may be especially helpful when balancing a down payment, moving expenses and other costs associated with purchasing a home.
How much a seller can contribute may depend on the buyer's loan program and other requirements, so it's important to work with your lender when deciding what to request.
Repairs and Credits
A home inspection may uncover items that weren't obvious when you first toured the property.
Depending on the contract, inspection findings and circumstances of the sale, buyers may have an opportunity to request certain repairs or negotiate another solution.
Instead of completing a repair before closing, for example, a seller may agree to provide a credit or other concession when permitted by the buyer's loan and the terms of the transaction.
Not every inspection item needs to become a negotiation. It can be helpful to focus on the issues that matter most and understand the difference between routine maintenance and larger concerns.
Interest Rate Buydowns
In certain situations, buyers may negotiate a seller contribution that can be used toward an interest rate buydown.
A buydown can reduce the buyer's mortgage rate temporarily or, depending on the structure, for the life of the loan. That can make a meaningful difference in the monthly payment.
There are specific lending rules surrounding seller contributions and buydowns, so your lender should help determine which options are available and whether one makes financial sense for you.
The Closing Date
Sometimes the terms that matter most to a seller have very little to do with money.
A seller may need extra time to purchase another home, coordinate a relocation or line up closing with another transaction. Another seller may prefer to close as quickly as possible.
If you have flexibility with your timeline, offering a closing date that works well for the seller could make your offer more attractive without increasing your purchase price.
Possession
Closing day and move-in day aren't always the same.
In some transactions, a seller may ask to remain in the property for an agreed period after closing. In others, the buyer may receive possession immediately.
The timing, responsibilities and any associated costs should be clearly addressed in the appropriate agreements. If possession timing is important to either party, it can become another point of negotiation.
Personal Property
See a refrigerator, patio furniture or another item you'd love to have stay with the house?
Certain personal property may sometimes be included as part of the negotiations, but these items need to be handled carefully and documented correctly. They can also affect financing or appraisal considerations in some circumstances.
If there's something you'd like to remain with the property, talk with your agent about the appropriate way to address it rather than assuming it's included with the sale.
Home Warranties
A home warranty may also be part of the conversation.
Depending on the transaction, a buyer may request that the seller pay for a residential service contract that provides coverage for certain systems or appliances after closing, subject to the terms and limitations of the selected plan.
For some buyers, this can provide an added layer of protection during the first year of homeownership.
Negotiation Is About More Than Getting the Lowest Price
Successful negotiation doesn't necessarily mean getting the seller to agree to every request. It's about identifying what matters most to you and finding terms that help you accomplish those priorities.
One buyer may care most about keeping cash available after closing. Another may prioritize a lower purchase price, while someone else may need a very specific closing timeline. The strongest strategy can look completely different from one transaction to the next.
At the Lonestar Living Team, we help our buyers understand where there may be room to negotiate and which terms could have the greatest impact on their purchase. When you know what options are available, you can approach negotiations with a strategy built around more than just the price on the listing.
