When you make an offer on a home that is for sale, know that the list price isn't necessarily the final price that you'll pay for a home. In addition to asking for a lower sales price in a slow real estate market, there are also things that you can ask the seller for. Here are two concessions you may be able to get from a seller that wants to close on the deal.
Pay For The Closing Costs
As a buyer, you are already using a lot of cash to cover the down payment on your home. This can leave you with very little money left to cover the closing costs. This is becoming more true as lenders are requiring bigger down payments for loans to be approved, leaving very little in your savings account at the end of the transaction.
Many types of loans do not allow you to roll in those closing parts into the mortgage, which can only be done with an FHA or VA loan. That is why you will want to ask the seller to cover the closing costs. It is not an all or nothing offer either, since you can ask for a percentage of the closing costs as well.
Credit For Home Improvements
Chances are that your home inspection will find something that is wrong with the home. It could be an old HVAC system on its last legs, a broken washing machine, or even an issue with the roof that needs to be repaired. While you can request that the seller makes these repairs before you close on the home, you can ask for a credit at closing to help cover the repair costs. This allows you to make the repair and ensure it is done to your standards, rather than leave it to a previous homeowner that is on their way out.
Many buyers use this concession to help make personal changes to a home. For example, instead of requesting a seller to put in new carpeting, they may ask for the cash value of what new carpeting would be. This allows the buyer to put that money towards refinishing the hardwood flooring underneath, which will cost more than new carpeting.
These are just a couple concessions that can be made during the negotiation process for a new home. For more advice on what you can ask for, work with your real estate agent.
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