Negotiation Tactics Every Buyer Should Use

• Save thousands of dollars.
• Reduce your upfront costs.
• Ensure you’re getting a home in the best possible condition.
• Avoid costly mistakes that could impact your financial future.

Understanding Your Leverage in the Homebuying Process

Key Negotiation Tactics for First-Time Homebuyers

• A pre-approval letter from a lender shows sellers that your financing is in place.
• Sellers are more likely to negotiate with buyers who have their finances in order.
• Pre-approved buyers may have an advantage over those who are just pre-qualified.

• Don’t lowball in a seller’s market . If you bid too low, you risk losing the home to another buyer.
• In a buyer’s market, start below the asking price. This leaves room for negotiations while showing the seller you’re serious.
• Include an earnest money deposit. This signals your commitment and can make your offer stand out.

• Inspection Contingency: Allows you to renegotiate if major repairs are needed.
• Financing Contingency: Protects you if your mortgage financing falls through.
• Appraisal Contingency: Ensures you don’t overpay for a home if the appraisal comes in lower than the offer price.
• Home Sale Contingency: Useful if you need to sell your current home before buying a new one.

• Closing Cost Assistance: Request the seller to cover part of your closing costs.
• Include Appliances and Fixtures: Negotiate to keep appliances, furniture, or home warranties.
• Repairs and Updates: If a home inspection reveals needed repairs, ask the seller to fix them before closing or provide a credit for future repairs.

• Negotiate for repairs or price reductions. If the inspection reveals problems, you can request the seller to fix them or lower the price.
• Prioritize major issues. Focus on structural, plumbing, electrical, and roofing concerns rather than cosmetic fixes.
• Consider a repair credit. Instead of asking the seller to fix issues, negotiate a credit to handle repairs yourself after closing.

• Having alternatives gives you power. If negotiations don’t go in your favor, knowing you have other options allows you to confidently step away.
• Don’t settle out of fear. Rushing into a bad deal can cost you more in the long run.
• Stay firm on your non-negotiables. If the home doesn’t meet essential criteria, be willing to walk away.

Common Mistakes First-Time Buyers Make in Negotiations

• Homes that have been on the market longer may have more motivated sellers.
• Making an offer at the end of the month could work in your favor if the seller is eager to close.

• If you’re up against multiple offers, consider offering a faster closing or waiving minor contingencies (but never major protections like inspection and financing contingencies).
• Offer a leaseback option if the seller needs time to move out.

• Negotiation is a process, and back-and-forth counteroffers are common.
• Stay firm on your budget and terms but remain open to reasonable compromises.

• Get pre-approved to strengthen your negotiating position.
• Start with a strong but reasonable offer.
• Use contingencies to protect yourself and leverage repairs or price adjustments.
• Ask for seller concessions to save money.
• Be willing to walk away if the deal doesn’t meet your needs.
• Stay patient and persistent throughout the process.
  

• Work with a trusted real estate agent who understands negotiation strategies.
• Research local home prices to ensure you make a competitive offer.
• Prepare a negotiation checklist before making an offer.
• Start your home search with confidence, knowing you’re prepared to negotiate effectively!