Things That Are Always Negotiable When Buying a Home

Whether you’re a homebuyer or a home seller, at some point in the process, you’ll find yourself playing the role of a home negotiator.

Real estate transactions are all about give and take, with both parties wanting and needing to bargain to seal the deal. But hey, even in a seller’s market, you might be wondering if you can still haggle for a better deal as a buyer.

So, what’s on the negotiation table? Well, practically everything in the real estate world can be up for grabs. We even heard this wild story where someone tried to throw in their horse as part of the deal (crazy, right?). But hey, we’re not horsing around here! Let’s dive into four common things you can flex your negotiation skills on when buying a home.

1. The price of the house

Now, it’s pretty obvious, but we can’t talk about real estate negotiation without emphasizing that the price of a home sale is ultimately a matter of personal judgment. The final selling price that both the buyer and seller settle on is influenced by the forces of supply and demand.

The price of a home is totally up for negotiation. Your local agent can be your trusty guide in this. If homes are flying off the market, that’s a sign that there might not be much flexibility. However, if a home lingers on the market for a while, you’ll definitely have more room to work your negotiation magic

2. Earnest money deposit

An earnest money deposit is the real deal when it comes to showcasing a buyer’s sincerity. It’s a good-faith deposit that accompanies the buyer’s offer, and if they decide to back out without a good reason, they kiss that deposit goodbye.

To really amp up their offer, some savvy homebuyers choose to up the ante with their deposit, proving to the seller that they mean serious business. For instance, let’s say the purchase agreement states an offer price of $100,000, and the buyer decides to put down a $1,000 earnest money deposit as a way to show their commitment.

Now, it’s important to note that earnest money is not the same as a down payment. A down payment is strictly designated for the mortgage, while earnest money is a deposit that gets credited to the buyer upon closing. It’s not an extra fee or anything like that.

If you’re feeling bold, negotiating the amount of earnest money you’re willing to throw into the mix is a clever bargaining tactic definitely worth giving a shot.

3. “Money” back at closing

Understanding the concept of getting “money” back at closing can be a bit tricky, but let’s simplify it. It’s a way for buyers to have a little extra cash in hand during the homebuying process by receiving assistance from the sellers to offset closing costs. Now, don’t get me wrong—you won’t actually receive cash directly from the seller. Instead, the seller provides funds that ultimately leave you with more money in your pocket.

To shed some light on this negotiation technique, let’s consider an example:

Imagine you’ve found a home you love priced at $500,000. If you plan to make a 20% down payment ($100,000) and allocate 5% for closing costs ($25,000), you’ll need $125,000 in cash. Let’s say you have $145,000 in your savings account. After closing on the home, you would have $20,000 left over.

Now, let’s explore a scenario where you want even more cash for unexpected expenses and daily living. You could offer to pay $510,000 for the house and request $10,000 back in cash.

In this case, the down payment and closing costs would increase slightly (to $127,500). However, if the seller agrees and the home is appraised at the higher price, you would have an extra $10,000 available for closing costs. Consequently, you’d have $27,500 remaining after the purchase instead of the $20,000 in the original scenario.

In that example, the home seller still receives the same amount—they walk away with $500,000,” explains Hale. “And the additional cash funds provide you, as the buyer, with more upfront money to use immediately, which can be beneficial since purchasing a home requires a significant amount of cash, even with financing involved.

4. Mortgage rate and closing costs

This crucial negotiation usually takes place between you and a mortgage broker, and its outcome can have a significant impact on your ability to buy a home.

When a homebuyer is seeking approval from a lender, it’s essential to ask the right questions. Questions like why a specific interest rate was offered or how much the closing costs amount to.

Different lenders not only offer various program options but also different rates for the same programs. That’s why it’s wise to speak with at least two lenders, seeking a second opinion and the opportunity to negotiate for the best rate.

In certain cases, buyers may be able to have some of the closing costs covered by the seller, known as concessions. However, this type of negotiation is more likely to occur in a buyers’ market.

Experts in Residential Real Estate in Orlando

If you are BUYING or SELLING real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

New Home-Buyer’s Home Essentials Guide

First-time homebuyers are definitely pumped when they finally move in and can’t wait to deck out their new place with all the cool stuff. But here’s the catch: While they’re super stoked about snagging that perfect coffee table and some fancy ottomans—and let’s be real, those things are nice to have—they might not be totally necessary.

When you’re caught up in the excitement of settling into your first house, it’s easy to overlook a few things that would actually be really useful.

Ever wondered what you might be forgetting? We asked new homeowners and real estate pros to spill the beans on the essential items you’ll want to have ready to go on move-in day. Get ready for these eight surprising must-haves that you should definitely add to your shopping list, plus some tips on picking out the best one.

1. Fire extinguisher

Every single broker and homeowner we asked for this article unanimously agreed that a fire extinguisher should be your top priority. Make sure you have one on every floor of your new crib, and definitely don’t forget to have one in the kitchen since that’s where most fires tend to start.

It’s also a smart move to have a fire extinguisher in the garage or shed, just in case some dry leaves or yard work decides to set things ablaze.

We found this awesome pick at The Home Depot for $60. It comes with a six-year warranty and has clear graphics that show you exactly how to use it. (Pro tip: Once you’ve got it, gather the whole fam and head to the backyard for a practice session. Better safe than sorry!)

And hey, while you’re at it, don’t forget to grab some smoke detectors and carbon monoxide detectors, along with a bunch of batteries. It’ll give you some peace of mind on that first night’s sleep. Safety first, people!

2. Heavy-duty garbage cans

After spending years living in an apartment, you’ve probably gotten used to simply tossing your garbage down a chute or relying on the building staff to take care of it. But once you become a homeowner, it’s a whole different ball game. Trash and recyclables are typically collected right from your curb, which means you’ll need a sturdy can that can handle whatever Mother Nature throws at it.

Having a rugged container not only keeps your waste secure and odor-free, but it’s also a smart move because, you might not have arranged for trash collection service by the time you move in.”

This heavy-duty trash bin from Lowe’s is the real deal. It comes with a solid 10-year warranty, ensuring its durability. With a tight seal, it’s designed to keep critters from rummaging through your discarded treasures. Plus, it’s compatible with various types of municipal truck lifters, making the pickup process a breeze.

3. Flashlights

Why go through the hassle of fumbling around in the basement trying to locate the breaker panel? Having a trusty flashlight at your disposal will save the day, whether you’re dealing with a power outage during a storm or exploring a dark crawl space for the first time.

This awesome four-pack of flashlights from Amazon is the perfect solution. For just $14, you’ll get a set that’s ideal for keeping one in the kitchen, the bedrooms, and the garage. The best part? These flashlights come with batteries included, giving you a whopping 60 hours of uninterrupted light. So, no need to worry about running out of juice when you need it most. Stay prepared and shine on!

4. Sump pump

While a sump pump may be a significant investment, it’s essential for protecting your basement from potential flooding or water damage. Even if you believe your basement is safe, the cost of cleaning up after a burst pipe is worth the investment. Additionally, unpredictable weather in a new location makes it wise to be prepared.

For $449, The Home Depot offers an energy-efficient sump pump that comes pre-assembled and ready to install. It includes a battery backup system and continuous monitoring, ensuring optimal performance and peace of mind. Don’t take chances with water-related mishaps—invest in this reliable sump pump to safeguard your basement.

5. Power strips

When moving into a new house, remember to grab extension cords and power strips. Your new place might be larger or have different layouts for the TV and lamps. Along with longer cords, get power strips with USB ports for added convenience.

Check out these sleek power strips on Amazon. They come in a pack of two for $30 and offer surge protection, six outlets, and USB options. Stay plugged in and seamlessly blend them into your decor with their steel gray tone.

6. Step stool

When you’re starting out in your new place, there’s a lot to hang up, from blackout shades and curtains to framed photos and a pot rack. And let’s not forget about those pesky hard-to-reach lightbulbs that need changing.

To tackle all these tasks, you’ll definitely need a trusty step stool. Look for one with an anti-skid rubber bottom and a sturdy design capable of supporting up to 300 pounds.

We’re big fans of this versatile stool available on Amazon. It comes in four different sizes and offers seven vibrant colors to choose from, including options like pink, ocean blue, and coral. At just $20, it’s a handy and stylish addition to your new home.

7. Stud finder

Becca Stewart, a military spouse based in San Antonio, TX, who knows a thing or two about frequent moves, swears by her trusty tool kit and work gloves to tackle all the handy work on move-in day. However, she insists that her toolbox is incomplete without a stud finder.

This nifty device is essential for locating the studs in your walls, ensuring a secure anchor for your pictures, mirrors, and that massive flat-screen TV. After all, most items can’t hang safely on drywall alone.

Check out this reasonably priced stud finder available on Amazon for just $30. It’s capable of detecting metal, live wires, pipes, and more lurking behind your walls, preventing you from blindly hammering away. And the LCD screen and alarm offer both visual and audio clues, which means you’ll never mis-hang anything in your new home.

8. Outdoor key box

You’ve just moved into your new home, and in the first week, you find yourself in the dreadful situation of not being able to locate your front door key. Talk about a major headache!