Helpful Negotiation Tactics for Today’s Housing Market

Helpful Negotiation Tactics for Today’s Housing Market

If you haven’t already heard, homebuyers are regaining some negotiating power in today’s market. While it doesn't make this a buyer’s market, it does mean buyers may be able to ask for a bit more. Sellers need to be prepared for this possibility and know what they're willing to negotiate.

Whether you’re looking to buy or sell a house, here’s a quick rundown of potential negotiations that may arise during your transaction. This way, you’ll be prepared no matter which side of the deal you’re on.

What Can You Negotiate?

In a home purchase, most aspects are open to negotiation. According to Kiplinger and LendingTree, here are a few key options:

• 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 is within their rights to 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 take them on 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 expenses the buyer would have when moving in. 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: Closing costs typically run about 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 the maintenance costs that may pop up after taking possession of the home. And 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 own 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: your agent can be a tremendous help throughout the process. Your agent is your go-to for any negotiations, handling the conversations and advocating 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. That insight can be incredibly valuable at the negotiation table.

Bottom Line

Buyers are regaining some negotiation power in today’s market. Buyers, knowing what levers you can pull will help you feel confident and empowered going into your purchase. Sellers, being aware of what buyers may ask for gives you the opportunity to consider what you’re willing to offer.

Want to chat more about what to expect and the options you have? Let’s connect.