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 this doesn’t necessarily make it a buyer’s market, it does mean buyers might have more leverage to request certain concessions. As a seller, it’s important to be prepared for these possibilities and know what you're willing to negotiate.

Whether you're planning to buy or sell a home, here's a quick rundown of potential negotiation points that may arise during your transaction. This way, you'll be well-prepared, no matter which side of the deal you're on.

What Can You Negotiate?

In a home purchase, many aspects can be negotiated. Here are a few of the options, as highlighted by Kiplinger and LendingTree:

• Sale Price: The most straightforward negotiation point is the *price* of the home, which is being discussed more frequently these days. With affordability concerns, buyers are cautious about overpaying, and sellers who set unrealistic asking prices might need to consider *adjusting* them.
• Home Repairs: After an inspection, buyers can reasonably request that the seller make repairs. If the seller is unwilling to make those repairs, they may offer to lower the home's price or cover some of the closing costs, allowing the buyer to handle the repairs themselves.
• Fixtures: Buyers might request that certain appliances or furniture be included with the house. For instance, a washer and dryer left by the seller can reduce moving expenses for the buyer. As a seller, you could offer to leave these items behind as an incentive and then purchase new ones for your next home.
• Closing Costs: Closing costs usually amount to about 2-5% of the home's purchase price. Buyers can request that the seller cover some or all of these expenses, helping to reduce the amount of cash the buyer needs to provide at closing.
• Home Warranties: Buyers may request that the seller pay for a home warranty, which can help cover maintenance costs that might arise after the buyer takes possession of the home. This can be an attractive option for buyers concerned about potential repairs, and since it typically isn't a significant expense for the seller, it can be a mutually beneficial arrangement.
• Closing Date: Buyers may request a quicker or extended closing period depending on their schedule. Similarly, sellers can express their preferences based on their moving plans, working together with the buyer to find a suitable compromise.

One thing is certain for both buyers and sellers: your agent is invaluable throughout the process. They manage negotiations, handle communications, and advocate for your best interests every step of the way. As Bankrate highlights:

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

They can also gain insights into what the buyer or seller is looking for through discussions with the other agent, which can be highly valuable during negotiations.

Bottom Line

Buyers are gaining some negotiation power in today’s market. Knowing your options can boost your confidence during your purchase. Sellers, understanding potential buyer requests helps you prepare and decide what you’re willing to offer.

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