Helpful Negotiation Tactics for Today’s Housing Market

If you haven't heard, homebuyers are starting to regain some negotiating power in today’s market. While this doesn’t mean it’s a buyer’s market, it does indicate that buyers might be able to ask for a bit more. As a result, sellers should be prepared for this possibility and understand their negotiation boundaries.

Whether you're buying or selling a house, here’s a quick overview of potential negotiations that might arise during your transaction, ensuring you're prepared no matter which side of the deal you're on.

What Are Your Negotiation Options?

Almost everything in a home purchase is negotiable. According to Kiplinger and LendingTree, here are a few of those options:

• Sale Price: The most obvious negotiation point is the price of the home, and this lever is being pulled more often today. Buyers don’t want to overpay, especially with tight affordability. Sellers who aren’t realistic about their asking price may need to consider adjusting it.
• Home Repairs: After the inspection, a buyer can reasonably ask the seller to make necessary repairs. If the seller refuses, they might offer to reduce the home price or cover some closing costs to allow the buyer to handle the repairs themselves.
• Fixtures: Buyers can request that appliances or furniture convey with the house. Including items like a washer and dryer can reduce the buyer’s expenses when moving in. Sellers can offer to leave these behind to sweeten the deal and buy new ones for their next home.
• Closing Costs: These typically run about 2-5% of the home’s purchase price. Buyers can ask the seller to cover some or all of these expenses to reduce the cash they need to bring to the table.
• Home Warranties: Buyers can request the seller to pay for a home warranty. This is beneficial for buyers concerned about maintenance costs after taking possession of the home. Since this concession is usually not too costly 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 schedule. Sellers can also negotiate for what they need to find a suitable compromise.

One thing remains true whether you’re a buyer or a seller: your agent is invaluable throughout the process. Your agent is your go-to for any negotiations, handling conversations and advocating for your best interests. As Bankrate states:

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

They can also uncover what the other party is looking for in their discussions with the other agent, providing valuable insight at the negotiation table.

Bottom Line

Buyers are regaining a bit of negotiation power in today’s market. For buyers, understanding the various negotiation points available to you can help you feel confident and empowered as you navigate your purchase. For sellers, being aware of what buyers might request allows you to consider in advance what you’re willing to offer.

Want to discuss more about what to expect and the options available to you? Connect with a local real estate agent to get expert guidance tailored to your situation. They can help you navigate these negotiations effectively, ensuring you make informed decisions whether you’re buying or selling.