Navigating the real estate market today can be challenging, especially when it comes to negotiating a successful home contract. With Covid-19 still impacting the market, we’re currently in what real estate professionals call a “seller’s market”—meaning there are more buyers than sellers.
This imbalance naturally creates a negotiation advantage for sellers, who are more likely to achieve their desired terms. However, buyers can still negotiate smartly and secure a good deal—it just requires strategy and preparation.
Knowledge is Power: Price and Terms
When negotiating, there are two key areas to focus on:
1. Price
Price is the most obvious aspect of negotiation. But it’s not the only factor that can influence a seller’s decision.
2. Terms
Terms often include:
- Inspection timelines
- Repair requests
- Appraisal contingencies
- Types of financing
- Closing timelines
While price grabs the headlines, terms can be just as powerful in shaping a deal.
Leveraging Terms in a Seller’s Market
In today’s competitive market, many sellers will accept a lower price that is not contingent on repairs or appraisals over a higher offer with contingencies. Here’s how you can use this to your advantage:
- Assess repairs carefully. Decide if certain repairs are a deal-breaker.
- Complete an inspection. Ensure there are no major hidden issues.
- Consider waiving contingencies strategically. If you can forego additional repairs or appraisal contingencies, this can turn a standard offer into a deal-changer for the seller.
By combining a competitive price with strong, flexible terms, buyers can stand out—even in a market that favors sellers.
Let’s Chat – Grace
