Buying a home: What you can negotiate (and what not to ask for)

There’s a saying in real estate that “anything is negotiable.” But while you can technically ask for whatever you want when making an offer, there are a set of unspoken rules that tend to dictate what buyers can negotiate – and what they shouldn’t ask for – when buying a home.

The negotiables

First, these are some of the things buyers can (and should!) realistically expect to ask for or about when making an offer on a property:

·      Purchase price—the purchase price is the most common thing buyers tend to negotiate when making an offer. Your REALTOR® can help you decide what a property is worth, see how it compares to similar sales in the same neighbourhood, and figure out how much you should offer to get the best deal you can.

·      Sale conditions—most buyers make their offers contingent on at least a few key conditions or clauses. This includes contingencies like carrying out a home inspection or having the property appraised, as well as making the sale conditional on selling your existing property or getting financing to buy the home.

·      Closing dates—it’s also very common for buyers to propose a move-in or closing date that’s sooner or later than the seller might prefer. In some cases, there may be a good reason why a seller needs to conclude their occupancy on a certain date. But if there’s a timeline that works better for you, it can’t hurt to ask and see what happens!

·      Minor fixes and repairs—if there are any glaring issues that need to be taken care of (like a broken ceiling light that needs replacing, an attic that’s filled with old junk, or a room that’s in desperate need of a fresh coat of paint), you can add a note to your offer asking for those items to be cleaned, fixed or cleared out before the sale is final.

·      Features and fixtures—if you want them, you can ask to include almost any non-permanent fixtures or features as part of your offer. This can be anything from the appliances, window coverings and smart home systems to things like patio furniture, pool maintenance equipment, or even a BBQ or hot tub.

·      Credit for potential issues—whether it’s a roof that needs replacing or an HVAC system that’s clearly on its last legs, if the property has any major issues that will need to be fixed or replaced soon, it’s perfectly acceptable to request a financial credit to take care of those issues, or apply the cost directly to the purchase price.

The non-starters

If you want the sale to go smoothly, however, here are a few things you probably shouldn’t spend your time or mental effort asking for:

·      Personal possessions—the quickest way to put a bad taste in the seller’s mouth is to ask them to include something that’s clearly personal or meaningful to them, like the contents of their fully-stocked wine cellar or that one-of-a-kind dining room set they had custom-made on their honeymoon trip to Italy.

·      Major repairs—the same goes for big repairs or renovations. If you want to gut the bathroom, redo the kitchen or switch out that old furnace for a new high-efficiency heat pump, it’s probably wiser to reflect the cost of those changes in your pricing rather than ask the sellers to carry out a big or time-consuming renovation for you.

·      Above-and-beyond cleaning—while we all want our homes to be spotless before we move in, everyone has a different idea of what “clean” looks like. So rather than making your offer contingent on a thorough cleaning, you’re probably better off booking your own cleaning service. As an added bonus, since you’ll be the one paying the bill, you can make sure the job is done exactly to your standards and specifications.

·      Extreme lowball offers—especially in a buyer’s market, it can be tempting to see how low a price you can get away with. But while being competitive is good, truly lowball offers run the risk that the seller will simply stop taking you seriously as a buyer.

If you need help finding where the line is between getting a good deal and going too far, check out what comparable properties in the same area have sold for in the past few months, or ask your REALTOR® for advice.

Questions?

Is there something you want to include in your offer, but you aren’t sure which side of “do or don’t” it falls into? Email us your questions or contact us to schedule a free consultation.