Negotiation: Consider more than the price of the home!

Kimberly Bean
Published on October 16, 2019

Negotiation: Consider more than the price of the home!

Home buying negotiation

It’s natural the price is top-of-mind when you’re talking about negotiating a real estate deal for a Southern Maryland home. And, for some homebuyers, these negotiations are critical.

Did you know that there are other ways to bargain with a home seller other than on price? The purchase agreement is full of haggling opportunities. Let’s take a look at five of the ones we deal with most often.

Repairs

We are quite familiar with negotiating home repairs. And after the home inspection, when the homebuyer gets the inspector’s report, the negotiations often begin anew.

Understand, though, that no Southern Maryland home is perfect; even newly-constructed homes can have problems. Don’t sweat the small stuff – save the negotiations for anything major that needs repair or replacement.

This is especially true if the problems are in one or more of the home’s major systems, such as HVAC, electrical, or plumbing or with the roof or foundation.

We can negotiate for a price reduction, closing costs credit, or for the repair work to be performed by the seller before closing. The first two options (price reduction or credit towards closing costs) are preferable, as they won’t typically delay the closing.

Plus, there is no way to guarantee the repair work, if performed by the seller’s contractor, will meet your standards.

Closing costs

Your mortgage will require a down payment and payment of closing costs. The latter includes the costs of obtaining the loan like lender fees, notary fees, and more.

Sellers are under no obligation to do so, but many buyers negotiate with the seller to pay all or part of their closing costs.

This is an easier pill for the seller to swallow if:

  • Your offer for the home is at full asking price
  • You intend to keep your request for repairs to a minimum. If the seller has to pay for a laundry list of requested repairs, he or she may not be amenable (or have the funds) to assist with your closing costs.
  • You put some skin in the game as well by paying for a portion of your closing costs

Personal property

Anything that isn’t permanently attached to the home or land (real property) is considered the personal property of the homeowner. Personal property that we commonly negotiate over for our homebuying clients include:

  • Appliances, such as refrigerator, washer, dryer
  • Window coverings
  • Chandeliers
  • Portable out-buildings

We have heard of buyers, though, who have negotiated for furniture, pool tables, artwork, and even the family pet!

Closing date

The closing date – the day on which the home becomes yours – is negotiable. This is important to know for several reasons:

  • If you are trying to time the closing of your current home to be simultaneous with the new home’s closing
  • You need more time to find another home
  • You are relocating and need to be in your new city by a certain date

If your schedule doesn’t conflict with the seller’s this is often a successful negotiation.

Home warranty

Real estate agents have a love-hate relationship with home warranties. Some consider them useless while others love them for the peace-of-mind they offer homebuyers.

If a home warranty is something that you desire, it’s possible to ask the seller to provide you with one – at least for the first year of home ownership. Basic coverage varies by region and company, but commonly includes coverage for:

  • HVAC systems
  • Kitchen appliances
  • Plumbing
  • Electrical
  • Roof leaks

This only a partial list of commonly negotiated items in a Southern Maryland home purchase, it outlines the ones we see most often.

Feel free to reach out to us if you have questions on this or any aspect of the home purchase process.

Mechanicsville MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309

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