Negotiation processes
There is no doubt that the negotiation part of the home buying process can be extremely stressful and intimidating for anyone, whether it is a first-time homebuyer or a seasoned veteran. As a result, it is important that you take the time to make sure that you are getting the greatest possible value for your money.
Here are 5 things to consider when negotiating a price while buying a home.
Closing costs
Normally, the closing costs of a home purchase will vary from 3% to 6% of the purchase price, depending on the factors involved. Consider asking the seller to cover some or all of the closing costs upfront, or consider asking the seller to grant you a closing credit that you can use for any updates and/or repairs that you wish to make to the house.
Furnishings
If you've found a home that you absolutely love and are impressed by the way the seller has furnished and decorated it, you may be wondering if there's a way to keep some of those items as part of the purchase agreement. This is where negotiation comes into play. Buyers often negotiate with sellers to keep items like sofas, fixtures, appliances, patio furniture, and landscaping items, among others. It's not uncommon for sellers to agree to these requests, particularly if they believe it will make the home more attractive to potential buyers.
Inspection and closing timing
When a buyer makes an offer that includes a quick inspection and close timeline, it signals to the seller that the buyer is motivated and serious about purchasing the property. This can be appealing to a seller who may have been through a lengthy selling process and is eager to close the deal as soon as possible. However, it is important to note that rushing the inspection process or closing the deal too quickly can be risky, as it can result in the buyer missing important details or issues with the property that may become costly in the long run. Therefore, it is recommended to give ample time to get financing in place and conduct thorough inspections before closing the deal.
Home warranty
Purchasing a home warranty can provide peace of mind to new homeowners, but the cost of the warranty can be a concern for some. When buyers negotiate with the seller to pay for the home warranty as part of the closing terms for their new home, they are able to reduce some of the financial burdens that come with buying a new home. The homeowner, however, will still be responsible for the deductible on any future claims that may occur and it is important to understand this before you make any decisions. A skilled real estate agent will be able to guide buyers through the negotiation process and help them find the best deal for their needs.
Repairs
The inspection process is a critical step when purchasing a new home. If repairs are needed, buyers have several options available to them, including negotiating with the seller to have repairs completed before closing or asking for a price reduction. It's important to work with an experienced agent and be aware of relevant laws to ensure that the negotiation process is fair and equitable. By taking the time to address repairs before closing, buyers can ensure that they are making a sound investment in their new home.
