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Buying Your First Home? Here’s What You Should Negotiate

Family get the new and first home

As a first time home buyer, you are likely to rely heavily on your real estate agent’s knowledge and expertise – as you should. Your agent will certainly ensure the process runs smoothly, but as a home buyer, you should keep in mind that there are certain things you should make sure to bring up when discussing the bottom line of your home purchase.

Here are a few things you should negotiate when buying your first home.

#1. Closing Costs

Many first-time buyers don’t realize that they will need extra money to complete the purchase of their home. The total amount depends on the property that is being sold and how it is valued, but buyers generally pay anywhere from 2% to 5% of the purchase price in closing costs. The kicker is that closing costs can be negotiated to be paid for by the seller.

If a seller is looking to sell quickly, you may be able to negotiate them paying for at least part of the closing costs. You can also request a closing credit for any repairs or changes that need to be made after the home has been purchased.

#2. Home Warranty Premiums

Anything safety-related should be negotiated in the sale of a home. You should always ask for a home warranty and it is common for sellers to pay for the home warranty upfront. This homeowner’s warranty covers the repair of items in the home like air systems, heating, appliances, etc.

Having a home inspection can also help first-time buyers save money because inspections can catch issues that will need to be addressed before the home is sold and can be used as leverage to get the seller to make the repairs on their dime.

#3. Closing and Move-In Dates

Many first-time homebuyers think they have to wait months before they can move into their new home or make an offer on a home. The truth is, negotiating move-in and closing dates is pretty standard. You can negotiate with the seller to buy out your current apartment lease or if the seller needs to stay in the home longer, you can negotiate for them to lower the price to accommodate this delayed move in.

#4. Price of the Home

Of course, you can negotiate the sale price of the home. The sale price is always negotiable and you can actually score quite a deal when using factors like neighborhood status, comparable homes, appraisal data, condition of the home and the overall real estate market.

There is also the option to ask the seller to pay loan points on your mortgage. These points help reduce the amount they pay in interest. Every point that is purchased will lower the interest rate and regardless of what a lender says, this can be negotiated.

Are you a first-time homebuyer looking for the perfect home in Montecito, California? I can make sure you find your dream home in your ideal neighborhood. Contact me today & check out my online listings to see all of the beautiful homes available in the area.

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