Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be daunting and stressful. Above and beyond the purchase price, what should you be prepared to negotiate when buying a home?
- Closing costs. Your closing costs are determined by a variety of factors, but you can expect it to be between 2% to 4% of the purchase price. Ask the seller to cover some or all of the closing costs upfront or request a closing credit that can be used to make specific updates and fixes to the home.
- Inspection and closing timing. Buyer offers that include a quick inspection and close timeline are often more attractive to sellers who have been going through the process for far too long. Just ensure you allow yourself ample time to get your financing in place and complete proper, thorough inspections.
- Home warranty. Sellers will often agree to pay the premium on the home warranty at closing and then hand it off to the new homeowner, who is responsible for the deductible on any future claims.
- Inspection items. Your inspection may uncover small or large repairs needed to bring the home up to standard. You can negotiate to have these items fixed before closing or ask for a price reduction to cover the costs.
- Furnishings. Though this is often best negotiated after a contract is in place, buyers often negotiate keeping couches, fixtures, landscaping items, patio furniture, appliances, and more. Sellers often agree, making a win-win for both parties.