Downriver Buyers Have More Negotiating Power – 5 Things to Ask For

Downriver buyers have more negotiating power in today’s real estate market than many people realize.

If you’ve been thinking about buying a home but have been sitting on the sidelines because the market felt too competitive, there may be some good news

The market hasn’t crashed. Good homes can still sell quickly, and buyers certainly aren’t holding all the cards.

And that doesn’t necessarily mean making a lowball offer.

A good real estate negotiation is about looking at the entire transaction and figuring out which terms matter most to the buyer — and which ones the seller may be willing to give.

Here are five things Downriver buyers should consider when putting together an offer.

1. Seller-Paid Closing Costs

The purchase price isn’t the only number that matters.

Buyers also have expenses associated with getting to the closing table, and those costs can add up quickly.

Depending on the property, the strength of the offer and the buyer’s financing, it may be possible to negotiate a seller contribution toward allowable closing costs, prepaid expenses or other settlement costs.

For some buyers, keeping several thousand dollars in their bank account after closing can actually be more valuable than getting the same amount knocked off the purchase price.

There are limits based on the type of financing and the individual transaction, so this is something that should be coordinated with your lender before writing the offer.

2. Repairs or Credits After the Inspection

A home inspection can uncover anything from a dripping faucet to an aging furnace or roof.

That doesn’t automatically mean the seller has to fix everything — and buyers shouldn’t necessarily expect them to.

But significant inspection findings can create another opportunity for negotiation.

Depending on the situation, a buyer might request that the seller make a repair before closing, provide an agreed-upon credit when permitted, or adjust other terms of the transaction.

The key is knowing which issues are worth negotiating and which ones aren’t worth losing the house over.

3. Occupancy and Timing

Sometimes the most valuable negotiating tool isn’t money at all.

Maybe the buyer needs to be out of an apartment by a certain date. Maybe the seller needs a little extra time after closing to move into their next home.

Closing dates and occupancy arrangements can sometimes be structured to make an offer more attractive to both sides.

That’s why we always want to know more than simply, “How much do you want to offer?”

Understanding what the seller needs can sometimes give a buyer an advantage without increasing the purchase price.

4. A Home Warranty

Another item buyers can potentially negotiate is a home warranty.

A home warranty may provide some additional protection for certain covered systems and appliances during the first year of ownership.

Instead of automatically asking for a price reduction, requesting a seller-paid home warranty may make sense in certain transactions — particularly when a home has older mechanical systems or appliances.

As with any warranty, buyers should review exactly what is and isn’t covered.

5. The Price

Yes, price is still negotiable too.

But this is where strategy becomes especially important.

A home that was listed yesterday and already has multiple interested buyers is very different from a property that has been sitting on the market without an offer.

Days on market, recent comparable sales, condition, previous price reductions and the seller’s situation can all affect how much negotiating room may exist.

Downriver buyers have more negotiating power on some properties than others, which is why looking at the individual home’s history matters.

The goal isn’t simply to offer less.

The goal is to determine what the home is worth and structure the strongest deal possible around that number.

Negotiating Isn’t About “Winning”

After nearly 30 years in real estate, one thing I’ve learned is that the best negotiations usually aren’t the ones where one side feels like they defeated the other.

They’re the ones where we find a way to put the transaction together so both the buyer and seller can say yes.

Sometimes that’s price.

Sometimes it’s closing costs.

Sometimes it’s repairs, possession or timing.

And sometimes the best advice we can give a buyer is, “This probably isn’t the house where we should push our luck.”

Every property and every seller is different.

That’s why looking at the entire situation before writing the offer matters.

How Downriver Buyers Can Use Their Negotiating Power

If you’ve been waiting because you assumed every home still requires an over-asking-price offer with no room to negotiate, it may be worth taking another look.

There are opportunities out there — but knowing where you have leverage and how to use it can make a big difference.

If you’re thinking about buying a home anywhere in Downriver or Metro Detroit, we’d be happy to sit down with you, look at what’s available and help you build a game plan.

The Holguin Team
ERA Prime Real Estate Group
734-686-5958
www.TheHolguinTeam.com

Helping you move in the right direction.