If you haven’t heard, homebuyers are regaining some negotiating power in today’s market. And while that doesn’t make this a buyer’s market, buyers may be able to ask for a little more. So, sellers must be ready for that possibility and know what they want to negotiate.
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.
- Home Repairs: Based on the inspection, a buyer can 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 make the repairs themselves.
- Fixtures: Buyers can also ask for appliances or furniture to convey when the house changes hands. Having the seller throw in the washer and dryer cuts down on the buyer’s moving expenses. As the seller, you could leave your existing ones behind to sweeten the deal for your buyer and get yourself new ones for your next place.
- Closing costs typically exceed 2-5% of the home’s purchase price. Buyers 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: Buyers can also ask the seller to pay for a home warranty. This is great for buyers worried about maintenance costs that may pop up after they take possession of the home. Since this concession usually isn’t terribly expensive for the seller, it can be a good option for both parties.
- Closing Date: Buyers can ask for a faster or extended closing window based on their timetable. The seller can also advocate for what they need based on their move to find the right compromise.
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. As Bankrate says:
“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”
They may also be able to uncover what the buyer or seller is looking for in their discussions with the other agent. And that insight can be precious at the negotiation table.
Bottom Line
Buyers are regaining some negotiation power in today’s market. Knowing what levers you can pull will help you feel confident and empowered in your purchase. Having a heads-up of what they may ask for allows you to think through what you’ll be willing to offer.
Want to discuss what to expect and your options? Contact the real estate professionals at KM Realty Group LLC in Chicago, Illinois.
