Helpful Negotiation Tactics for Todays Housing Market

If you havent already heard, homebuyers are regaining some negotiating power in todays market. And while that doesnt make this a buyers market, it does mean buyers may be able to ask for a little more. So, sellers need to be ready for that possibility and know what theyre willing to negotiate.

Whether youre looking to buy or sell a house, heres a quick rundown of potential negotiations that may pop up during your transaction. That way, youre prepared no matter which side of the deal youre on.

What Can You Negotiate?

Most things in a home purchase are on the negotiation table. Heres a list of just a few of those options, according to Kiplinger and LendingTree:

• Sale Price: The most obvious is the price of the home. And that lever is being pulled more often today. Buyers dont want to overpay when affordability is already so tight. And sellers who arent 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 doesnt 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 homes 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 isnt 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 youre a buyer or a seller, and thats how much your agent can help you throughout the process. Your agent is your go-to for any back-and-forth. Theyll handle the conversations and advocate for your best interests along the way. 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. And that insight can be really valuable at the negotiation table.

Bottom Line

Buyers are regaining a bit of negotiation power in todays market. Buyers, knowing what levers you can pull will help you feel confident and empowered going into your purchase. Sellers, having a heads up of what they may ask for gives you the chance to think through what youll be willing to offer.

Want to chat more about what to expect and the options you have? Connect with a local real estate agent.