Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. In the end, you want to get the best possible deal for your money. So, what kind of things can you negotiate when buying a home?
Your closing costs are determined by a variety of factors, but you can expect them to be between 2% to 5% of the purchase price. (Once you have decided to make an offer, we have some great tools that can give you a better idea of actual closing costs.)
You have the option to 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.
Do you love how the seller has furnished and decorated the home? Buyers often negotiate keeping couches, fixtures, landscaping items, patio furniture, appliances and more. And many sellers agree, wanting to make the home more appealing.
In Arizona, we see this quite often as many of the homes and condos purchased and sold are second homes. By going this route, the seller does not have to move anything out and the buyer has a furnished home to move into. It is a win-win for both the buyer and the seller!
Inspection and Close Date
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.
On the other hand, some sellers want to stay put for a while and would prefer a later sale date. If this works for you, your flexibility could make your offer stand out.
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.
In Arizona, the home warranty option is included in the contract and we strongly suggest getting one to cover your home, regardless of who ends up paying for it. (Having a home warranty has personally saved us thousands of dollars!)
Your inspections 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.
In Arizona, we use a form called the BINSR (Buyers Inspection Notice and Sellers Response Form) for this exact purpose. This document gives buyers the opportunity to ask sellers to repair items that surfaced during the inspection period.
Want more negotiation tips? We are happy to help. Simply contact us!