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When it comes to buying or selling a home, negotiation is the name of the game. But what happens when one party gets too aggressive? Here’s what you need to know about negotiating with a seller during your home purchase. These do’s and don’ts can make or break your deal.
Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it is necessary to ensure you are getting the most effective possible deal for your money. So, what should you negotiate when buying a home?
Ask the seller to agree to cover some of the closing costs. Closing costs can amount to anywhere from 2% to 5% of the sale price of the home. If your available cash is limited getting a credit towards closing costs can increase your purchasing power. Many sellers will be willing to provide a credit especially if the credit is offset by a slightly higher purchase price.
Keep in mind if you’re trying to buy a home with multiple offers, negotiating a seller credit may not be a wise decision. Additionally if you’re purchasing a luxury home at a high price point requesting a seller credit may cause the listing agent and seller to question your ability to qualify for the home.
If you fell in love with the home decor and the home wasn’t furnished by a staging company (meaning the furnishings are rented), it’s worth asking the seller to sweeten the pot by throwing in some furniture. If they are downsizing, or moving out of state or country, they may not need large furniture pieces or appliances and could be more than happy to make them part of the deal.
If you have your financing already preapproved, and a home inspector lined up, agreeing to quicker closing can make a buyer very happy and more inclined to offer flexibility in the purchase price or seller credits. Before you do this make sure you’re communicating a reasonable timeline with your lender.
Another option is to do a pre inspection. By doing the inspection prior to making the offer you can waive your home inspection contingency without risking buying a home without an inspection. Obviously the downside would be the wasted cost of the inspection fee if you don’t end up getting an offer accepted.
At a certain point, being a hard-core negotiator can sour a deal and build resentment. Know what you want going in, and lay out all your requests at once. Be clear about your contingencies, and keep your ego in check. Figure out your non-negotiables ahead of time and list what items you’re flexible on.
A lowball offer to test the waters can be insulting, and damage your reputation as a buyer among both sellers and agents. You don’t have to offer full price but throwing out a really low ball offer on a home that was recently listed won’t get you very far and is a waste of time for all parties.
Raising your offer by a thousand dollars at a time is tacky and unappreciated. Decide where your ceiling is, and divide the difference between your minimal and maximum offer into no more than two additional touchpoints. This allows you some wiggle room without dragging out a process and annoying the seller.
A “take it or leave it” aggressive attitude can lead to a hard “leave it” response that won’t be walked back later, even if the seller relents on the price. They’ll opt to sell to someone else for less than come back to you after such irritating treatment.
Negotiate in good faith, and you could come up a clear winner. Screw up in the negotiation phase, and you could find yourself kissing your dream home goodbye.
We’ve fine-tuned the preapproval process to make it one of the easiest experiences you’ll have in the whole home buying process. Buying a home should be fun and exciting, not stressful. Get preapproved today!
Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon and Washington.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.