If you are a first-time home buyer then probably you will contact a real estate agent for doing all negotiation on your behalf. But you can do the approach by yourself and make sure that you are not missing out any opportunities. It is absolutely wrong to think that your agent will proactively negotiate on your behalf. This is a guide which will provide an idea about things that you can negotiate on before you buy the first house.
Things to negotiate about:
- Costs: Closing costs is the first thing about which you can bargain with the seller. Sometimes seller is ready to bear all the closing costs especially when they are anxious to move from that property to another. You can even request for a closing credit for specific changes made after you buy the property. This is not going to decrease the total purchasing price but you will definitely get some money back. You may even increase the price slightly and then ask for a credit. Further, you have to ensure that all the repairs are done before closing the sale so the seller remains responsible for the final cost.
- Home warranty: The second thing that you should always negotiate is for the home warranty. It is common for the sellers to pay for all the repairs made in the next year. It covers the repair of key items like heating and air systems, plumbing and appliances. You must always take the home inspection as that can save your money in the future. There are usually two types of inspections one is standard inspection which is concerned about insignificant issues and specific inspections which target household areas like your roof or bathrooms. A seller may deny the latter type of inspections but you have to negotiate about it before you buy the first house.
- Possession dates: Most buyers assume that deciding the possession dates is their problem but negotiating about closing or possession dates is standard. Sometimes you are already in a lease or agreement so you can’t buy the property at that point in time. In that situation, you can negotiate with the seller about the possession time. There are times when the seller wants to sell early and has no problem in adjusting with a price to get out of the lease. Similarly, if the seller needs extra time to vacate then the buyer can grant them the time in exchange of lower price.
- Furnishings: You can negotiate about anything as a buyer. Furniture is a very important aspect. You should consider that the house has furniture that fits the room layout, it has proper sinks, showers, appliances, and light fixtures. Sometimes if the house doesn’t have all such furnishings the seller is ready to make the home more appealing to the buyer. Usually, furnishings come as a gift from the homeowner. Negotiating about furnishings becomes more important for you when you are going to buy the first house as you need to furnish an entire home after spending a huge amount on purchasing the house.
Therefore, these are some of the vital points that you must negotiate before you buy first house. Apart from these things you can negotiate on the price of the house on the basis of comparable properties, the status of a neighborhood, condition of the house and overall market. You can even ask the seller to pay points on your mortgage as a tax-deductible expense. Each point will lessen the rate of interest you pay on the loan. There are many more factors involved in this process but negotiating can save you a lot of money in the purchase price of your new house.