Negotiations on a home purchase are not always just about price. Depending on the Real Estate market, it may be difficult to negotiate the asking price.
However, there are other items involved during a home sale that can benefit you in other ways.
Here, we go over those items in detail and how to work them to your advantage.
After your home inspection is completed, you should be handed a report with any issues that need to be addressed with the home.
Smaller items like missing lightbulbs and chipped paint are seemingly menial things to ask to be fixed.
Any issues with the home’s major systems such as electrical, plumbing, or A/C is where your bargaining power lies.
This can go one of two ways:
- You can ask for a reduction in sales price due to the cost it would take for you to fix the repair in question.
- You can ask that the sellers fix the issue themselves as a condition of the sale.
In a seller’s market, option one will be your best choice. This is because the reduction in sales price can be negotiated to be only a portion of the repair cost- versus the seller paying more upfront to fix the issue.
If you are trying to make your offer more attractive to the sellers, get an idea of their needs.
If they are looking for a quick closing, you can offer a sooner closing date. This will be dependent on how far into the loan process you are to guarantee the deal will close on the proposed date.
If the sellers are closing on their own home and need time to finalize that deal, you can work with them on a later closing date, so they have more time.
It is not uncommon for the buyer to ask for a portion, if not all, closing costs to be covered by the seller.
Work with your Realtor and research the current market to see if this bargaining chip would benefit you.
In a seller’s market, it likely would not as they will have other offers on the table.
Read more about closing costs here and how to lower them.
Other things that can be thrown into the mix are:
- Asking the seller to cover a home warranty. This covers items that homeowner’s insurance will not such as appliances and pools.
- Home amenities or décor items you would like to stay such as a wine refrigerator or a couch that fits the space perfectly.
- Request that the sellers have the home professionally cleaned before moving in. This has been increasingly common due to the rise in concern of viruses.
Once again, the power that these bargaining tools hold is unique to every situation and market. Speak with your title rep, Real Estate agent, and lender to ensure you are making the best possible offer for all parties involved.