What Is Commonly Negotiated When Buying A Home?

With homebuying, everything is negotiable, from repairs and closing costs to furniture and appliances. Offers and counteroffers can negotiate on a mix of these factors. These are some of the most commonly negotiated aspects in homebuying.

Purchase Price

Your pre-qualification letter from your lender will tell you the maximum you can pay for a property, but you may not need to increase the price up to your limit. Your mortgage lender should be able to advise you on what makes the most sense for your budget and the local market or take a look at our home affordability calculator.

Closing Costs

Closing costs, which include insurance, title fees, taxes and appraisals, are often the most negotiated line item between buyers and sellers. Closing costs can add up to as much as 5% of your total loan amount.

Closing Date

This is the date that you get the keys to the home. If the sellers need time to pack and move out, they may ask for more time, for example.


A seller can reject or modify the contingencies, or conditions for purchase, that you included in your offer. Home inspection, appraisal and home sale are examples of contingencies. Before you consider dropping contingencies, be sure to speak with your real estate agent about the possible risks.

Earnest Money Deposit

Also referred to as good faith money, earnest money is the sum you put down with your offer to show the seller you’re a serious buyer. Typically 1% to 2% of the purchase price, the earnest money deposit applies toward your down payment or closing costs.

Personal Property

You can ask the seller to leave appliances, furniture or window treatments, for example.

The best-case scenario when you submit an offer on a home is that the seller accepts it with no conditions. However, if the home doesn’t truly check off any of your wish list, and negotiations aren’t going your way, maybe it’s time to see what other homes are available.

Source: My Home by Freddie Mac – Homebuying Negotiations: Responding to a Counteroffer – August 06, 2021
This article is for informational purposes only.

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