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.

Contingencies

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.

Related Articles

2024 Conforming Loan Limits

FHFA Announces Conforming Loan Limits for 2024

Baseline Conforming Limit Will Increase to $766,550 FHFA Announces Conforming Loan Limits for 2024 | Federal Housing Finance Agency Washington, D.C. – The Federal Housing Finance ...
Read More →

Mortgage Soft Pull for Stress-Free Home Shopping

Welcome to George Mason Mortgage – Your Key to Stress-Free Home Buying! Are you ready to embark on your home-buying journey? We believe that knowledge ...
Read More →

Federal Home Loan Bank (FHLB) of Atlanta provides Grants for Community Partners and First-Time Homebuyers

Opening Doors for More Homebuyers George Mason Mortgage understands that saving money for a down payment and closing costs is one of the most challenging ...
Read More →
Out of This World Rent

Rent prices out of this world?

At George Mason Mortgage, we understand the challenges you may be facing in today’s housing market, and we are here to empower you with viable ...
Read More →
Maryland Smartbuy Program 3.0

Achieve Your Dream Home and Tackle Student Debt with Maryland SmartBuy Program 3.0

Are you a Maryland resident dreaming of homeownership but burdened by student debt? The Maryland SmartBuy Program 3.0 is here to help you turn that ...
Read More →
Gifts Grants and Affordable Seconds - Horizontal

Unlocking Opportunities with Gifts, Grants, and Affordable Seconds

GIFTS Take advantage of the generosity of your loved ones or community organizations! This allows you to receive financial assistance from eligible donors to use ...
Read More →
Scroll to Top