Realtor.com / Getty Images
You found your dream home and are looking forward to closing. Before getting there, there are several key factors that can save homeowners money.
Kevin Esquilin, home loan officer, shared on his Instagram his six items that homebuyers can negotiate. He explains that it’s always worth asking because a buyer and a seller have a goal: to close the deal.
First, repairs can be negotiated. If a home inspection reveals there are things to be fixed, the homebuyer can negotiate with the seller to fix it.
“Most things in buying a home are negotiable,” Esquilin told Realtor.com®. “Repairs are negotiable, which is why I always recommend a home inspection for every purchase. Doing a home inspection that costs generally about $300, can find repairs that can be used for the seller to fix that can cost thousands of dollars, which saves the buyer.”
Closing costs are another negotiating factor. Homebuyers are responsible for the down payment and other fees necessary to complete the terms of the loan agreement, but when it comes to closing costs, it’s negotiable who will pay.
As for the closing date, there is some flexibility. Esquilin explains that 30 days is the average, 45 days is extended, and 21 days is a rush deal. Whatever way, the closing date is negotiable and it’s best to come up with a date that works for both sides.
“Negotiating the length of closing can help people give themselves more time to appropriately move out of their current place (pack, clean, etc.) and make the process a lot less stressful,” says Esquilin.
What’s inside the home can also be negotiated. In the home listing, it may state appliances come with the house, but read the fine print. If there’s something that you’re unsure of, your real estate agent can ask the seller if there are certain appliances or even furniture you may be allowed to keep. This may come at a cost to the homebuyer, though.
Home warranties typically last 1 to 2 years, according to Esquilin, but buyers can negotiate if the seller is willing to pay for it. This may work in a homebuyer’s favor if the seller refuses to make repairs.
Next, sellers can give the buyer additional funds to pay the interest rate down to get a lower rate.
“If the buyer is wanting to get a lower rate, the seller can provide credits to lower the buyers interest rate either permanently or temporarily,” explains Esquilin. He said some of his clients have looked into a 2/1 temporary buydown.
This is a type of financing that lowers the interest rate on a mortgage the first two years of a loan before it rises to the regular permanent rate.
Mortgage rates
Any concessions by the seller to help with a deal should come as welcome news, as homebuyers are saddled with mortgage interest rates that have continued to hover near 7%.
The average rate on a 30-year fixed home loan is 6.75% for the week ending July 17, according to Freddie Mac—that’s up from 6.72% the week prior. This time last year, rates averaged 6.77%.
Inflation also accelerated in June at the fastest pace since February. Consumer prices rose 2.7% in June compared with a year ago after rising 2.4% in May, according to the U.S. Labor Department’s consumer price index.
“June’s numbers mark a slight shift from May’s cooler-than-expected inflation data, but it remains unclear if and when the U.S. economy will feel the true brunt of a slew of new tariffs,” says Realtor.com senior economist Jake Krimmel.