As a first-time homeowner, there are a lot of things you might not know when purchasing your home. Most of these things you will find out as you go along. You must do your due diligence to avoid getting the short end of the stick, and to make sure you get the best deal possible. There are several things that you must negotiate when purchasing your first home:
Payment Of A Percentage Or Entire Closing Costs
Closing costs are one of the key items you can negotiate for with success as a first time home buyer. These costs can catch a first-time buyer flat-footed because they rarely have any idea that they will have to dip into their pockets again before the purchase is complete.
The final total largely depends on the property location and value, but the expected amount should be anywhere from 2% and 5% of the total buying price. Closing costs can either be covered by the buyer or seller. If the seller needs to dispose of the property fast, it might be possible to get the seller to pay a fraction of all the closing costs, or the whole amount
A Home Warranty Premium For The First Year Plus Inspection Repairs
The homeowner’s warranty pays for the repair of major items such as plumbing, and appliances or heating and air systems. One way of saving some money is doing a home inspection, of which there are two types. Standard inspections which identify big and small issues that need fixing, and specified inspections which specifically check areas such as bathrooms or roofs. A seller may decline an inspection which gives you some leveraging power to either fix the issue or walk away from the transaction. Make sure you thoroughly discuss anything that concerns safety when purchasing your first home.
Closing or Possession Dates Flexibility
When you have agreed on a closing date, you might want to move into your new home as soon as possible. This all depends on your current circumstances. As a buyer, negotiating for flexibility for closing dates is expected. Many first-time home buyers think that they must wait for several months before writing an offer on the home they want because that is when their lease for their current home is expiring.
You can negotiate with the seller to buy out your current lease. Most often than not, the seller will have no issue with making a slight adjustment to the tune of a few thousand dollars it will cost to buy out the lease. If a seller needs some more time to vacate, the buyer, if not in a particular hurry to move in, can give the seller more time to move out and the seller reduces the price to compensate for the extra time given.
Household Items And Furnishings
As a buyer, it is possible to negotiate for a lot of things such as furniture, rerouting of showers and sinks, light fixtures, lawn care items and even cars. A seller may agree to these requests if their intention is to make the home more enticing for the buyer, they are avoiding transporting the items to their new abode, or they simply don’t need the items.
Mortgage Loan Points or House price
While purchasing your first home, you can negotiate for a lower price by asking the seller to pay loan points on your mortgage. The seller can pay your mortgage as an expense which is tax-deductible. Any new home buyer would want a reduction in their interest, which gives rise to points. For every point you buy, the interest lessens, and can be negotiated downwards no matter what a lender says. If you are purchasing your first home, then you would be better off engaging an experienced real estate agent like NJLux. Give us a call at (201) 771-1969 or send an email to Josh@NJLux.com and we will take you through the house sale negotiations with ease.