There are many things to factor in when buying a home than simply agreeing to its price tag. You as a first-time home buyer can actually get a better deal if you know how to bargain and what exactly to bargain for.
To give you a head start in the art of real estate negotiation, take note of these 6 bargaining points:
Closing costs to be paid
Yes, even first-time buyers can negotiate on part or all of the closing costs. This is something worth knowing beforehand to avoid being caught off-guard by extra charges needed to close the deal.
Depending on the value of the property, you are expected to pay 2% to 5% of the home’s purchase price. However, since the closing costs can be paid by either the buyer or seller, try to detect how anxious the seller is to move onto the nextproperty. Based on that, you can negotiate with them to pay at least half of this particular fee or to pay in full.
Home warranty and inspection
Our agents at California Lifestyle Realty will advise you to always inquire if the house is covered by a home warranty and if it has undergone home inspection. A home warranty can give you discounts on repairs for things like faulty plumbing and malfunctioning appliances. Meanwhile, if the house has been inspected, the expert handling this should have a detailed assessment of the home’s current issues, as well as issues to watch out for. Things like damaged HVAC systems or leaking roofs could be stated in this assessment.
The home warranty and the results of the home inspection can be used as leverage for you to negotiate on the price or to strike a deal for the seller to fix any safety-related issues.
Length of time to close
Many sellers will want negotiations over and done with at once. Thus, offering a quicker closing time can be a great bargaining chip in your favor. However, consider your own standing before presenting this at the negotiation table. Offer a closing date that allows you to sort out your finances and gives enough time for an inspection to be done.
Flexible closing and possession dates
It is pretty standard to negotiate for flexibility in closing or possession dates. You may need extra time to move into the new house and the seller may also want extra time to vacate. Negotiating for this is a win for all because both you and the seller can agree to a specific closing date and gain enough time to deal with unfinished business.
Contingencies are usually related to the following aspects: general inspection, appraisal, and financing. Some of these contingencies will make sense but others may not be to your liking. If you can live with contingencies set by the seller, then the home sale can proceed. But if you are not comfortable with some or all of the contingencies then you can either bargain harder or walk away from the negotiation table.
Thinking of buying your first home in La Quinta, Palm Desert, or Indian Wells? Our experienced real estate agents at California Lifestyle Realty can help you negotiate for the best deal possible. Get in touch with us by calling 760.564.1200 or by sending an email to info(at)calilifestylerealty(dotted)com.