Homebuyers are beginning to reclaim some negotiating power in the current market. While it’s not quite a buyer’s market, this shift means buyers might have more room to make requests. Sellers should be prepared for this possibility and know their boundaries when it comes to negotiations.

Whether you're buying or selling, understanding potential negotiation points is crucial. Here’s a quick overview of what might come up during your transaction so you can be prepared.

What Can Be Negotiated?

Almost everything in a home purchase is open for negotiation. Here are some key areas, according to Kiplinger and LendingTree:

Sale Price

The most obvious point of negotiation is the sale price. With affordability being a concern, buyers don’t want to overpay. Sellers need to be realistic about their asking prices and may need to adjust if they’re not seeing offers.

Home Repairs

After an inspection, buyers can request that sellers make necessary repairs. If the seller isn’t willing to make the repairs, they might offer to lower the price or cover some closing costs to give the buyer funds for the repairs.

Fixtures

Buyers can ask for certain fixtures or appliances to be included in the sale. This could mean leaving behind a washer and dryer, which can save the buyer money and add appeal to your listing.

Closing Costs

Closing costs usually amount to 2-5% of the home’s purchase price. Buyers can request that sellers cover some or all of these costs to reduce the buyer’s out-of-pocket expenses.

Home Warranties

Buyers may also ask sellers to provide a home warranty, which covers potential maintenance costs. This is a relatively inexpensive concession for sellers and can offer peace of mind to buyers.

Closing Date

The closing date is another negotiable item. Buyers might need a quicker or delayed closing, depending on their circumstances. Sellers can also request adjustments based on their moving plans.

The Role of Your Agent

Whether buying or selling, having a skilled real estate agent is invaluable. Your agent will manage negotiations and advocate for your best interests. According to Bankrate:

“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”

Agents can also gather insights from discussions with the other party’s agent, providing valuable information for negotiations.

Bottom Line

In today’s market, buyers are starting to regain some negotiating power. Buyers should understand their options and feel confident in making requests. Sellers should be aware of potential buyer requests and consider what concessions they’re willing to make.

If you want to discuss your options and what to expect, let’s connect.