Know What Is Open to Negotiation
Buying or selling a home means making decisions about more than the asking price. Repairs, closing costs, appliances, and timing can all become part of the conversation. Knowing those options helps you prepare before an offer turns into a back-and-forth discussion.
When buyers regain some negotiating power, that does not automatically make it a buyer’s market. It can simply mean buyers have more room to ask. Sellers should be prepared for those requests and think through what they are willing to negotiate.
The practical approach is the same on either side: know what matters most to you, decide where you can be flexible, and work with your agent to communicate those priorities.
Six Things Buyers and Sellers Can Negotiate
Most things in a home purchase are open to negotiation. Kiplinger and LendingTree identify several possible negotiating points, including the sale price, repairs, items left with the home, closing costs, a home warranty, and the closing date.
You do not have to approach every item as a demand. Start by deciding which requests matter to your budget or move, then discuss them with your agent.
1. The Sale Price
The price of the home is the most obvious place to negotiate. Buyers do not want to overpay, especially when affordability is a concern. Sellers who are not realistic about their asking price may need to consider an adjustment.
For buyers: Think through what you are comfortable paying before the conversation starts. Discuss your proposed offer with your agent, and keep your own budget in view during the back-and-forth.
For sellers: Decide how willing you are to adjust the price. If a buyer asks for a reduction, consider that request alongside any other terms being discussed rather than looking at the price alone.
2. Home Repairs
After the inspection, a buyer can ask the seller to make reasonable repairs. The inspection gives both sides a starting point for discussing what needs attention and how they want to address it.
If the seller does not want to make the repairs, another option is to reduce the sale price or cover some closing costs. Those alternatives can help leave the buyer with money to take on the work themselves.
For buyers: Review the inspection with your agent and identify the repairs you want to discuss. Consider whether you would prefer the seller to complete the work or whether you want to discuss a price reduction or closing-cost contribution.
For sellers: Think about which approach you are willing to offer. You may prefer to handle reasonable repairs, or you may want to negotiate one of the alternatives.
3. Appliances, Furniture, and Other Items
Buyers can ask for appliances or furniture to remain with the home when it changes hands. A washer and dryer, for example, can reduce the expenses a buyer faces when moving in.
For a seller, leaving existing appliances behind can sweeten the deal while providing an opportunity to choose new ones for the next home.
For buyers: Be specific about what you would like included. Instead of making a general request about appliances, tell your agent which items you want to discuss.
For sellers: Look at what you planned to take with you and what you would be comfortable leaving. If you are open to including certain items, discuss that flexibility with your agent.
4. Closing Costs
Closing costs typically run about 2% to 5% of a home’s purchase price. Buyers can ask the seller to pay some or all of those expenses to offset the cash they need to bring to closing.
This is a separate negotiating point from the sale price. Before deciding what to request, consider whether your priority is a lower purchase price or help with the cash needed at closing.
For buyers: Talk through your closing-cost questions with your agent and mortgage professional. Be clear that you want to understand the options, rather than assume a seller contribution will be part of the agreement.
For sellers: Decide whether you are willing to contribute toward the buyer’s closing costs. Consider the request together with the proposed price and other concessions.
5. A Home Warranty
A buyer can also ask the seller to pay for a home warranty. This may appeal to buyers who are concerned about maintenance costs after they take possession.
A home warranty usually is not a terribly expensive concession for the seller, so it can be an option worth discussing for both parties.
For buyers: If a home warranty matters to you, bring it up with your agent while you are setting your priorities. Treat it as a specific request to discuss, not an assumed part of the purchase.
For sellers: Consider whether you would be comfortable offering a home warranty as part of the negotiation.
6. The Closing Date
Buyers can request a faster closing or an extended closing window based on their timetable. Sellers can also advocate for the timing they need for their move.
The goal is to find a compromise that works for both sides.
For buyers and sellers: Write down your preferred closing timing and discuss how much flexibility you have. If timing is one of your biggest priorities, make sure your agent knows that before negotiations begin.
Let Your Agent Handle the Back-and-Forth
Your agent is your go-to person for negotiating the transaction. They handle conversations with the other side and advocate for your best interests throughout the process.
As Bankrate puts it:
“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”
Your agent may also uncover what the other buyer or seller wants through conversations with the other agent. That insight can be valuable when deciding what to request, offer, or reconsider.
Prepare Your Priorities Before You Negotiate
Buyers, knowing which terms you can discuss can help you approach a purchase with more confidence. Sellers, anticipating those requests gives you time to decide what you are willing to offer.
Start with a short list: what matters most, where you can compromise, and what you want to ask your agent. Include price, repairs, closing expenses, and moving dates rather than focusing on just one number.
Then review that list with your real estate agent. If you want to talk through the mortgage side of your purchase and the questions to ask about your financing, reach out to Ed Parcaut.
