The Return of Negotiation: What Buyers Can Ask for in Today’s Market
For the past several years, many buyers became accustomed to hearing the same advice: move quickly, make your strongest offer, and don't ask for too much.
But the real estate market is changing.
As more homes become available and some properties take longer to sell, buyers may have something they haven't had much of in recent years: negotiating power.
That doesn't mean every seller is willing to negotiate or that every home can be purchased below asking price. Desirable homes that are priced correctly can still attract plenty of attention. However, buyers shouldn't automatically assume that the price and terms they see on a listing are the only options available.
So, what can buyers potentially negotiate?
Purchase Price
The most obvious place to negotiate is the price of the home.
When a property has been on the market for a while, recently had a price reduction, or isn't receiving much activity, a seller may be more open to considering an offer below the current asking price.
This is where understanding the local market becomes especially important. Looking at comparable sales and recent activity can help determine whether there's room to negotiate or whether the home is already priced competitively.
Closing Costs
Price isn't the only number that matters.
Depending on the situation and loan program, buyers may be able to ask the seller to contribute toward certain closing costs.
For buyers trying to preserve some of their savings after making a down payment, negotiating closing-cost assistance can sometimes be more valuable than negotiating a slightly lower purchase price.
Repairs
The home inspection can also create an opportunity for negotiation.
If an inspection uncovers an issue, buyers may have several options. They might request that the seller make a repair, ask for a credit when appropriate, renegotiate other terms, or decide whether they are comfortable accepting the property in its current condition.
The important thing is to focus on significant concerns rather than expecting an older home to be perfect.
Closing Date
Not every negotiation has to involve money.
Sometimes flexibility can make an offer more attractive to both sides. A seller may need additional time to move, while another may prefer to close as quickly as possible.
Understanding what's important to the seller can help buyers structure an offer that works for everyone.
Personal Property
See something in the home that you'd love to keep?
Certain appliances, furniture, outdoor equipment, or other personal property may sometimes be negotiable depending on the seller and the situation.
These items shouldn't distract from the bigger details of the transaction, but they're another reminder that there can be more to negotiate than just the purchase price.
Interest Rate Strategies
With mortgage rates continuing to impact affordability, financing has become an increasingly important part of the conversation.
Depending on the transaction, buyers may want to speak with their lender about whether available seller concessions could be used toward eligible closing expenses or an interest-rate buydown.
Every loan program has different requirements, so it's important to involve your lender before structuring an offer around one of these strategies.
The Key Is Knowing When to Negotiate
Having more negotiating power doesn't mean every buyer should automatically submit a low offer or request every possible concession.
A home that has been listed for two days with multiple interested buyers is very different from a property that has been sitting on the market for several weeks.
The strongest strategy considers the home's price, condition, time on market, recent comparable sales, competing interest, and the seller's situation.
Real estate negotiations aren't about one side "winning." The goal is to create an agreement that allows both the buyer and seller to move forward.
As the market continues to shift, buyers may have opportunities that weren't as common a few years ago. Knowing what to ask for—and when to ask for it—can make a meaningful difference.
If you're considering buying a home, don't just focus on the asking price. Understanding the entire offer and where there may be room to negotiate can help you make a smarter move.