Buying your first home can be a daunting task, filled with lots of paperwork, unfamiliar terms, and surprises. But one thing is for sure, everyone wants to get the best deal possible. Whether it's a bargain price, mortgage rates, or terms of the contract, most buyers want to negotiate some items in the buying process. That's why in this post, we'll discuss the things that buyers can negotiate when purchasing a house. 

1. Price 

Price is by far the most obvious item to negotiate when buying a house. It is beneficial to research property values in the area and gather information on the seller's motives for selling the house. If the seller is on a tight deadline and needs to sell quickly, buyers may be able to negotiate a lower price. Remember that negotiation is a two-way street and what you ask for, the seller can also negotiate, so be prepared to compromise. 

2. Financing

When purchasing a property, buyers need to shop around and find the best financing rates for their needs. This involves understanding the specific requirements of the purchase, such as the down payment amount, and setting clear goals and objectives before negotiating financing options. First-time home buyers in particular may be eligible for incentives, such as reduced property transfer tax, at this stage. It's important to take the time to research and compare options to ensure the best possible outcome.  

3. Repairs

As part of the home-buying process, buyers often request repairs identified by a professional inspection. In some cases, buyers may be able to have more extensive repairs made, such as fixing the roof or updating the electrical wiring. However, buyers should be careful to balance the cost of repairs and the overall value of the house. In some cases, it may be more realistic to ask for seller concessions, such as a credit towards the closing cost, rather than have the sellers to undertake the repairs themselves.

4. Closing Date 

Buyers may also be able to negotiate the closing date when buying a house, such as asking for an extension to give them more time to get their finances in order. Likewise, sellers may want to close quickly to begin the next stage of their life. However, there are things outside of either party's control or schedule such as documentation that can stunt the pace in closing. It is essential to agree on a mutually beneficial date that is workable for both parties.

5. Deposit Structure

A deposit is a crucial aspect of the negotiation process. While 5% is the standard amount, it can be increased or decreased depending on the buyer's situation. Increasing the deposit beyond the standard 5% is an excellent way to submit a stronger offer, as it demonstrates to the seller that you are a serious buyer. 

Negotiating when buying a home is a common practice that can benefit both the buyer and the seller. While some may shy away from negotiating for fear of being seen as aggressive, understanding what, when, and how to negotiate can save buyers a considerable amount of money and stress. Buyers should start by researching property values and balancing their expectations with what the seller may be willing to concede. Though it was once imperative to negotiate in person, it is not always the best practice.  By successfully incorporating these tips, buyers can get the best possible deal on a home while still building a mutually beneficial relationship with the seller.