5 Tips for Negotiating a Better Home Deal

Before you attend your first open house, make sure you understand the landscape. Are homes in your desired area selling above or below asking price? What's the average cost per square foot? This data, available online or through your real estate agent, can help set realistic expectations for how much bargaining room you may have.

Consider how long a particular property has been on the market; if it's been more than a few weeks, you may be able to negotiate a better price. "Our most recent Profile of Home Buyers and Sellers report shows that many sellers are willing to lower the price after five or more weeks,"¹ says Brandi Snowden, director of member and consumer survey research at the National Association of Realtors^®.

Also, pay attention to a property's price history. If the status has changed from pending to active one or more times, it may indicate that the home is in need of repairs—which could give you additional leverage. If an inspection report is available, have your agent ask to see it. An inspection can reveal issues that may justify a lower price, seller-paid improvements, or credits to cover future costs. "Home repairs are one of the most common seller-offered incentives we see," Brandi says.

When evaluating offers, a seller might entertain a lower all-cash offer since there's no waiting on appraisals or fear of financing falling through. "According to our data,² all-cash home sales remain near historic highs, comprising 26% of home transactions in 2024," Brandi says.

Sellers often resist lowering their sale price but may be willing to negotiate in other ways. Consider asking them to cover:

• Closing costs: These fees, which typically include title insurance, transfer taxes, and other administrative costs, are generally rolled into your mortgage. By getting the seller to cover all or even part of these expenses, you can reduce your loan amount, along with the interest owed over the life of the loan.
• An interest rate buydown: In some market environments, a seller might be willing to pay "points"—a percentage of the mortgage amount—to secure you a lower rate. Again, the savings over the life of the loan can be meaningful.

"That said, if you come out of the gate with a lowball offer, the seller may be unwilling even to entertain negotiations," says Sanel Duranovic, CFP^®, a Certified Private Wealth Advisor^® at Schwab. "An experienced agent can advise you on how to submit a palatable offer."

Don't let your fear of missing out cloud your judgment. "If a deal doesn't meet your needs, it's probably better to move on," Sanel says. "In fact, your willingness to walk might make the seller more open to negotiations."