You may have heard that more houses are up for sale at the moment. And although that will change based on the market, it indicates that, on the whole, things are beginning to tilt more toward equilibrium. As a result, some sellers are somewhat more willing to make concessions. What that means for you is as follows.
You might have some negotiating leverage again. If you know what levers to pull during the negotiation process, that could result in savings, benefits, or even better terms on your purchase.
The Significance of an Agent in the Negotiation Process
Knowing what is and isn’t on the table is the difficult part. Here’s where your agent can help. The National Association of Realtors (NAR) states that in addition to helping them find the ideal house, buyers most want their agent to assist them in negotiating the terms of the sale, which is followed by negotiating the price.
Here’s why. Agents are trained for situations like this and are adept negotiators. Being knowledgeable about the local market, your agent will also be able to tell you what is and is not working for other buyers, which can help you determine what is reasonable to request.
What’s on the Negotiation Table?
The following are a few of the most typical compromises that an agent can assist you in negotiating:
- Sale Price: The home’s price is the most evident concession. And more people are pulling that lever now. Since affordability is already so limited, buyers don’t want to overpay. Additionally, sellers who have unrealistic expectations for their asking price might need to think about lowering it.
- Costs of Closing: Closing costs, which include fees for the appraisal, title insurance, and loan underwriting, are typically between two and five percent of the purchase price of a home. You can request that the seller cover some or all of these costs in order to reduce the amount of money you must bring to the table. According to NAR, this was the most popular concession that vendors made in 2024.
- Home Warranties: You can ask the seller to cover the cost of a home warranty if you’re concerned about potential maintenance expenses after you receive the keys. This concession can be a useful negotiating tactic for a buyer because it is typically not very costly for the seller. For them, it doesn’t cost much, but for you, it can be a huge benefit.
- Home Repairs: You have the right to request repairs from the seller based on the results of the inspection. The seller may offer to lower the home’s price or pay for some closing expenses if they choose not to, giving you more money to handle the repairs yourself.
- Fixtures: Do you want to keep your washer and dryer? Perhaps the stainless-steel refrigerator as well? When you move in, you can save money by asking for appliances or even furniture to be included in the deal.
- Closing Date: There is also room for negotiation on this date. A quicker or longer closing window may also be requested, depending on your schedule. This might also be ideal for the seller’s circumstances, depending on their requirements.
Negotiation is a complicated process, of course. Furthermore, not all vendors will be open to making compromises. Once more, ask your agent for professional guidance on what is reasonable to request and what might turn off sellers.
Because you don’t want to risk losing the house you’ve found that you love. However, you also want to get the best terms on your purchase, and an agent can help you achieve this.
Bottom Line
Buyers are discovering they have a little more clout as inventory increases. Additionally, it is crucial to have the right agent by your side who can assist you in taking a strategic approach to negotiations.