POST TAGSFirst-Time Home Buyer
Blog posted On November 30, 2022
Buying your first house is an exciting move, especially in the current market. More and more sellers are offering consessions to buyers like closing costs, points, etc. But there might be more conessions that your real estate agent could negotiate. It's always useful to work with a real estate agent, especially when buying your first house. They have the ability to potentially save you hundreds or thousands. Here are five concessions you might be able to win:
1. All or some of the closing costs – When buyers purchase their first home, they often don’t realize that closing costs are another huge expense on top of down payment. Negotiating closing costs with a seller is a great way to take off some of the extra financial stress of buying a home.
2. A home warranty – A home warranty helps cover major systems in the home like plumbing, heating and air, and appliances. This is usually a small expense of anywhere between $400-$600 for a year of coverage. This is something that most real estate agents recommend adding to an offer and the policy gets paid out at closing.
3. Flexibility on closing day – Many first-time home buyers think they have to wait months before the end of their lease term to make an offer on a home. Closing day can be negotiable to fit the buyer’s timeline and can all be a win-win for the seller if they need more time to move or find a house.
4. Cosmetic updates, and furnishings – In a slow market, sellers may be inclined to make small cosmetic updates around the home to make a deal. Buyers may even be able to have the seller leave some of the furniture.
5. House price or buydown rate – With it currently being a slower time of year for home sales, home buyers are able to get an offer accepted for a lower sales price. Today, sellers are also offering extra concessions to help buy the interest rate down for buyers as an incentive to them to purchase their home.
The market is slowly shifting away from the 2020 and 2021 days. Sellers are no longer in control. As a buyer it may seem nerve-racking to ask for different concessions – especially after the crazy buyer competition and bidding wars in recent years. But now is your time to shine (and potentially save thousands of dollars)! Ask your Realtor about the possibility of concessions.