If you haven’t already heard, homebuyers are now regaining some negotiating power in today’s Santa Fe market. And while that doesn’t make this a buyer’s market, it does mean buyers may be able to ask for a little more. Especially, since there is now more inventory for buyers to consider. So, sellers need to be ready for that possibility and know what they’re willing to negotiate.
Whether you’re looking to sell or buy a house, here’s a quick rundown of potential negotiations that may pop up during your transaction. That way, you’re prepared no matter which side of the deal you’re on.
What Can You Negotiate?
Most things in a home purchase are on the negotiation table. Here’s a list of just a few of those options, according to Kiplinger and LendingTree:
- Sale Price: The most obvious is the price of the home. And that lever is being pulled more often today. Buyers don’t want to overpay when affordability is already so tight. And home selllers who aren’t realistic about their asking price may have to consider adjusting their price.
- Home Repairs: Based on the inspection, a buyer is within their rights to ask the seller to make reasonable repairs. If the seller doesn’t want to do that, they could offer to reduce the home price or cover some closing costs, so the buyer has the money to take them on themselves.
- Fixtures: Buyers can also ask for appliances or furniture to convey when the house changes hands. Having the seller throw in the washer and dryer cuts down on expenses the buyer would have when moving in. As the seller, you could leave your existing ones behind to sweeten the deal for your buyer, and get yourself new ones for your next place.
- Closing Costs: Settlement costs typically run about 2 to 6% of the home’s purchase price. Buyers can ask the seller to pay for some or all of these expenses to offset the cash the buyer has to bring to the table.
- Home Warranties: Buyers can also ask the seller to pay for a home warranty. This is great for buyers worried about the maintenance costs that may pop up after taking possession of the home. And since this concession usually isn’t terribly expensive for the seller, it can be a good option for both parties.
- Closing Date: Buyers can ask for a faster or extended closing window based on their own timetable. The seller can also advocate for what they need based on their move out time to find the right compromise.
One thing is true whether you’re a buyer or a seller, and that’s how much your representative can help you throughout the process. Your agent is your go-to for any back-and-forth. They’ll handle the conversations and advocate for your best interests along the way. As Bankrate says:
“Agents have expert negotiating skills. Without one, you must negotiate the terms of the contract on your own.”
They may also be able to uncover what the buyer or seller is looking for in their discussions with the other agent. And that insight can be really valuable at the negotiation table.
Bottom Line:
Buyers are regaining a bit of negotiation power in today’s market. Buyers, knowing what levers you can pull will help you feel confident and empowered going into your purchase. Sellers, having a heads up of what they may ask for gives you the chance to think through what you’ll be willing to offer. Better yet, the more the home has been maintained, the more leverage they have in negotiation, especially if you are wondering about selling.
Sellers, now is the time to know the value of your property for a benchmark value so you can track plan for the future. Buyers it is equally important to evaluate your housing budget along with your needs vs wants along with what you can realistically afford in a shifting market. Learning more from a current market report may be a good start. Further, in my opinion, the seismic changes in the real estate process have added confusion to market with the changes in buyer broker representation following the National Association of Realtors (NAR) settlement. Lastly, this is a presidential election year which typically adds more uncertainity.
Given the headlines, I am hopeful you will take me up on my offer of a consultation. There is no obligation or fee and you may be surprised to learn you actually have options. Either call or text my cell at 505.660.4541 for an appointment. Thank you for reading. Emily Medvec