How Much Can You Negotiate on a House? (6 Key Seller Tactics)

2. Asking the seller to cover a portion of closing costs

Both buyers and sellers pay closing costs. A seller’s closing costs alone can amount to 9% to 10% of the home’s value. However, some buyers will request that sellers pay for a portion of their closing costs to give them a bit of financial breathing room.

A buyer’s closing costs can include loan and broker fees, loan origination fees, application fees, credit report fees, title and escrow fees, recording fees, and other third-party charges. Altogether, closing costs typically total between 2.5% and 6% of the full loan amount for a buyer.

In some cases, a buyer may request the seller offer a closing cost credit to reduce the amount of cash they’ll have to bring to the table. These credits can often be applied toward the buyer’s escrow closing costs, including appraisals, inspections, and mortgage and settlement fees.

Seller’s strategy

Bill Samuel, an experienced property investor and house flipper in Chicago, often sees buyers try to negotiate on closing costs. “If the buyer presents an offer with a closing cost credit, it most likely means that they need that money in order to make the deal happen, so we stay firm on our price and allow the credit before any other concessions,” he says.

If a buyer asks you to cover closing costs, you can respond by:

• Agreeing to cover all closing costs
• Agreeing to cover part of the closing costs
• Denying the request to cover any closing costs

Greg Kurzner, a seasoned property investor in Atlanta, generally recommends offering partial closing costs because it is a finite amount, and any costs beyond that will be the buyer’s responsibility.

Keep in mind that depending on what kind of loan the buyer has, and the size of their down payment, there are limits on how much you’re allowed to offer in closing credits.

Sometimes, buyers offer to raise the sale price in exchange for seller-paid closing cost credits. While this may look like a win-win on paper, there are a few important details sellers should consider.

Kurzner often agrees to this kind of arrangement, but he always includes a stipulation: The agent commissions are based on the net sale price — after subtracting the closing cost credits. This ensures that the seller isn’t paying commission fees on money they aren’t actually receiving.

While this tactic can seem appealing, it’s important for sellers to factor in how this affects the final numbers, especially when it comes to agent commissions. On the surface, the seller still gets a higher sale price, but the commissions will reflect only the actual proceeds they take home.

If the buyer includes an appraisal contingency in their offer, and the seller agrees to pay part of their closing costs, there’s an additional consideration. Kurzner typically adds a stipulation: If the home doesn’t appraise at the purchase price, the seller can reduce the closing cost credit to help bring the purchase price in line with the appraised value.

This ensures that the seller isn’t on the hook for an over-inflated sale price, especially if the appraisal comes in lower than expected. It’s a smart way to protect both parties and ensure the deal can still move forward without costing the seller more than anticipated.

3. Requesting that you leave certain items with the home

When a buyer makes an offer on a house, it’s usually for the home itself, not the items inside — unless you’re selling the property fully furnished. But sometimes, buyers may try to negotiate for specific items to be included in the sale, whether it’s appliances, furniture, or even outdoor features.

It’s a common negotiation tactic, and one that can catch sellers off guard if they’re not prepared to decide what stays and what goes.

Stays with the house

“Legally, anything that is permanently attached to the property is considered a fixture and is generally included in a home sale,” says David Reischer, a New York attorney specializing in real estate, mortgages, taxes, and estate planning. “However, state laws can vary as to what is — and what is not — included in the sale, so be sure to be explicit.”

When Samuel sells properties in his area, he generally expects to sell everything attached to the house as part of the deal. Items that are built-in and immovable are considered part of the “real property” and should remain after the seller vacates. Some examples include custom window treatments, built-in hot tubs, cabinets, and curtain rods.

Must-go items

Non-fixed items like movable furniture, curtains, lamps, and wall art are typically considered personal property and are not included in the sale of the home. These items are not permanently attached to the property, so they generally remain with the seller unless specifically negotiated otherwise.

Gray-area items

Semi-attached items, such as swingsets, light fixtures, outdoor fountains, wall-mounted decor, and above-ground pools, aren’t so clear-cut and should be spelled out in the contract.

Appliances like the fridge, oven, dishwasher, and washer and dryer usually stay because they’re a hassle to move, but the buyer may request them in the contract to be sure.

“I always recommend a seller not simply give away an appliance, even if they don’t want to move it when they leave,” Kurzner says. “If a buyer asks for appliances to stay, that means they see value in them and need them. The seller can often get some or reasonable value by countering such a request with a price.”

Seller’s strategy

If a buyer asks to include an item in the contract, you generally have four choices:

• Grant the request
• Refuse the request
• Grant the request, but raise the house price
• Refuse the request, but offer some sort of credit or price concession to make up for it

The decision to include an item in the sale should be driven by its value to you, whether financially or sentimentally. If an item is large or difficult to move, like a swing set or trampoline, Nelson’s clients often agree to leave it behind. It allows the buyer to feel like they’ve gained something extra while sparing the seller the trouble and cost of moving it. This approach can help close the deal with minimal hassle, offering a small “win” for the buyer without much inconvenience for the seller.

And in some cases, the law will dictate how you respond: “A seller should find out whether the law views something as a fixture or not to determine whether the item needs to be included or possibly negotiated into the larger transaction for a higher price,” Reischer says. Check with your real estate agent or a local real estate attorney to clarify the rules in your area.

4. Asking for a price reduction or credit for repairs

The inspection period is another big opportunity for buyers to negotiate with you. Even in a hot seller’s market, this stage of the game often sparks negotiations — and if the buyer was generous with the offer price, this is an opportunity for them to recoup some money. If the inspection brings to light water damage in the basement or a faulty HVAC system, for example, they may ask for some concessions to cover those costs.

“In the market right now, there is such high demand that buyers are writing offers purely based on emotion, sometimes even before going through the property,” Nelson says.

“Maybe they’ve paid list price, or even higher than list price, and they feel like they want to get a win during the inspection process, whether that’s by asking for a price reduction, several repairs, or a closing credit to cover those repairs.”

Kurzner is seeing this happen a lot in his area, too — particularly because it’s a seller’s market, where buyers can’t negotiate as much on price. “Because many markets are very tight on inventory and homes are having multiple offers presented within hours of listing, buyers are offering top dollar to get under contract, and then trying to negotiate some more after they complete an inspection,” he says.

Seller’s strategy

If the buyer is requesting concessions on costly, major items — such as the roof, HVAC, furnace, or other mechanicals — and it’s clear that those items are nearing the end of their life, it would be difficult to refuse those. “If the seller refuses a concession and the deal falls through, it’s very likely the next buyer will ask for the same thing,” says Eric Hughes, founder and CEO of Rental Income Advisors.

On the other hand, he notes, some buyers may try to “nickel and dime” the seller by requesting concessions for smaller cosmetic repairs, such as paint, small carpentry fixes, gutter-cleaning, patching nail holes, and other items that don’t affect the value of the home. For those types of requests, you can usually stand firm.

“Buyers will sometimes request that a seller patch holes and marks caused by pictures, paintings and wall art,” Kurzner says. “This is — on the surface — no big deal, but rarely ever can you effectively patch and paint these holes without having to repaint the whole wall. I recommend never agreeing to touch up holes in walls.”

Samuel agrees. “When negotiating repairs or upgrades, we will agree to make any legitimate defect found that is a safety issue, but will not perform additional cosmetic upgrades or improvements without re-negotiating the price.”

If you don’t want to spend upfront money on making home repairs, another option would be to offer a home warranty to give some measure of protection to the buyer after closing, or offer to reduce the price instead of waiting for a lengthy repair to be completed.

5. Negotiating a sooner possession date

In some cases, the buyer will want to gain occupancy of their new house as soon as possible, particularly if they need to vacate their current home by a certain date or they’re transferring into a new area for a job. The closing date is one area where you may be able to give a little without making any financial concessions.

Quick closings have historically been a good thing for both the buyer and seller, Nelson notes, but lately he’s been seeing the opposite. In today’s tight market, sellers often don’t have anywhere to go when their house sells because inventory is so low.

“We’ve been negotiating on not just longer escrow periods, but also delayed vacancies, where we close on the property and then the seller rents back from the buyer for a month or two until we can find suitable housing for them,” Nelson says.

Seller’s strategy

Ultimately, your individual situation and needs will drive your decision of whether to concede on negotiations for a certain closing and occupancy date. If the buyer wants to move in by a certain date and you are able to accommodate that request without too much expense or hassle, it might be an opportunity to score some points by accommodating the request. On the other hand, if the buyer can’t take occupancy for an extended period, you’ll have to determine whether it makes financial sense to hold onto the property until they’re ready to close, or if you should move onto a buyer without those delays.

In some cases, Kurzner has seen the buyer ask for partial possession prior to closing, such as asking to store some furnishings in the seller’s garage. He strongly advises against making this type of concession.

“The most obvious reason is that once someone else’s stuff is in your house, if they then don’t ultimately close on the purchase, you have to evict their stuff to get rid of it,” he explains. Sellers shouldn’t have to bear the liability or risk of damage or theft.

6. Requesting coverage through a home warranty

To provide peace of mind, many buyers will ask for a home warranty to be included with the sale. This is sort of like an insurance policy to cover the cost of repairing or replacing major components like the HVAC, electrical, and plumbing systems. Sometimes these warranties also can cover appliances, roofing, and other items.

Nelson sees buyers request that sellers cover home warranties on almost every offer he receives on his listings. The average cost of a home warranty ranges from $450 to $600 per year, so if you offer to cover a three-year home warranty, it would cost you between $1,350 and $1,800.

Seller’s strategy

If the home inspection flagged some potential issues but you don’t want the repair process to delay the sale, it might make sense to offer a home warranty instead. That way, the buyer can make any necessary fixes on their own timetable.

Nelson estimates that about half of the sellers he works with are willing to offer a home warranty, particularly if the buyer is paying the full asking price.

Negotiating for the best deal as the seller

When negotiating a home sale, the flexibility you have often depends on market conditions. In a buyer’s market, where inventory is high and homes are moving slower, buyers will have more room to negotiate. This means that negotiating a house sale could involve buyers requesting price reductions or other concessions, knowing that they have more options. On the other hand, if it’s a seller’s market — where inventory is limited and buyers are competing — buyers are less likely to make unreasonable requests. In these conditions, it’s easier for sellers to hold firm and avoid major price reductions.

So, how far can buyers push in a seller’s market? The short answer is: not as much. Sellers often have the upper hand in competitive markets, and while buyers may try to negotiate for small concessions, significant price cuts are less common. Knowing when and where to compromise will help you negotiate the best deal.

Understanding whether you’re in a buyer’s or seller’s market and recognizing the current demand for homes in your area can give you a clearer idea of your negotiating position. With these insights, you’ll be better equipped to navigate the negotiation process and get the best offer on your home.

When it comes to negotiating, your real estate agent is your most valuable tool. He or she can help you decide when to concede and when to stick to your guns, so that the deal is fair and beneficial for both you and the buyer. In extreme cases, they’ll know when it makes sense to walk away from the deal.

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