Buying or selling a home is one of the biggest financial transactions most people will ever make. Whether you’re the buyer or the seller, negotiation is a crucial part of the process. Many people focus on the price, but there’s a lot more on the table that you can negotiate to make the deal work in your favor. Here are some key things you can negotiate during a home sale.
1. The Sale Price
Let’s start with the most obvious—the sale price. This is usually the biggest point of negotiation. As a buyer, you might offer less than the asking price based on market conditions, the home’s condition, or how long the property has been on the market. As a seller, you want to get the best price possible, but you may need to be flexible if you’re looking for a quick sale or if the market favors buyers.
2. Closing Costs
Closing costs are the fees and expenses associated with finalizing the sale, and they can add up quickly. These include loan origination fees, title insurance, escrow fees, and more. In many cases, the buyer pays the closing costs, but it’s not uncommon to negotiate this. Buyers can ask the seller to cover all these costs, especially in a buyer’s market. Sellers, on the other hand, might offer to pay closing costs to sweeten the deal or if they need to sell quickly.
3. Contingencies
Contingencies are conditions that must be met for the sale to go through. Common contingencies include the buyer securing financing, the home passing an inspection, or selling the buyer’s current home. Both buyers and sellers can negotiate which contingencies are included and the timeframes for each. For example, a seller might push for a shorter contingency period to speed up the process, while a buyer might negotiate for more time to secure a mortgage.
4. Home Repairs
During the home inspection, issues might arise that need to be addressed before the sale can proceed. Home repairs are another major point of negotiation. Buyers can ask the seller to make repairs or reduce the sale price to cover the cost of fixing the issues themselves. Sellers might agree to fix some items but not others, or they might offer a credit at closing instead of making the repairs.
5. Move-In Date
The move-in date is more flexible than you might think. This is the date when the buyer can take possession of the home. It’s negotiable and can depend on both parties’ timelines. A buyer might want to move in as soon as possible, especially if they’re already paying for temporary housing. A seller might need extra time to find a new home or move out. Negotiating a move-in date that works for both parties can make the transaction smoother.
6. Personal Property
Sometimes, the buyer might fall in love with certain items in the home, like appliances, furniture, or window treatments. Personal property can be negotiated as part of the sale. Buyers can request that specific items stay with the home, and sellers can agree, decline, or negotiate a higher price to include them. This can be a way for sellers to add value to the deal or for buyers to save on moving costs or purchase new items.
7. Home Warranty
A home warranty can provide peace of mind to the buyer by covering repairs or replacements of major systems and appliances for a certain period after the sale. Buyers can negotiate to have the seller pay for a home warranty, which is often a good gesture that shows the seller stands behind the quality of their home. Sellers might offer this upfront to make their home more attractive to buyers.
8. Financing Options
Sometimes, sellers can help buyers with financing. This could include offering seller financing, where the seller acts as the lender, or providing incentives like paying points on the buyer’s mortgage to reduce their interest rate. This type of negotiation can be particularly useful if the buyer is having trouble securing traditional financing or if the seller wants to make the deal more appealing in a competitive market.
9. Inspection Period
The inspection period is the time allowed for the buyer to have the home inspected. This period can be negotiated. A buyer might want a longer inspection period to ensure everything is thoroughly checked, while a seller might push for a shorter period to keep the sale moving quickly. The timing of the inspection period can be crucial, especially if the buyer needs to line up contractors or specialists to assess potential issues.
10. Seller Concessions
Seller concessions are when the seller agrees to pay for certain costs normally the buyer’s responsibility, like repairs or closing costs. This can be a way to close the deal if the buyer is short on cash or if the market is competitive. Sellers might offer concessions upfront to make their home stand out, or buyers can request them during negotiations to make the purchase more affordable.
Negotiation is an essential part of the home buying and selling process. Understanding what you can negotiate—and how to negotiate effectively—can help you get the best deal possible. Whether you’re buying or selling, being prepared to discuss these key points will ensure that the transaction works in your favor and meets your needs. Remember, the goal is to find a win-win solution where both parties feel satisfied with the outcome.
