What Terms in an Offer are Negotiable?

Have you ever heard a Realtor mention the words “negotiable terms” or “contingencies” and wonder what that meant? If so, you definitely aren’t alone. When you’re making an offer on a home, there are many different variables/terms/contingencies in that offer that are able to be negotiated. Below, we’ll break down each negotiable term of an offer and what it means:

1. The Price
   The offer price is the most negotiated term in an offer.
   

2. The closing date
   Sometimes the closing day we are hoping for doesn’t work with the seller, so we work together to find a closing date to works for both the buyer and the seller.
   

3. A Home Warranty
   In SOME markets, you may be able to negotiate a home warranty paid for by the seller. This unfortunately doesn’t always happen, especially in Seller’s markets, but it’s a negotiable term none-the-less. A Home Warranty will cover appliances and major mechanicals for a year after the closing date in the event something happens to an appliance or a major mechanical item. If the seller won’t pay for a Home Warranty, you can always purchase one on your own.
   

4. Seller Concessions
   Seller Concessions are also known as “closing cost credits”. This is another term that unfortunately doesn’t typically happen in a Seller’s market, but is a negotiable term none-the-less. To break it down simply, the seller can contribute a certain amount of money towards your closing costs. The amount that a seller can contribute to your closing costs is limited to a certain amount, and your lender will be able to confirm the maximum amount the seller can contribute.
   

5. Earnest Money
   Earnest Money is also known as “good faith money”. Earnest money is typically 1% of the offer price and is typically delivered 3-5 business days after the offer is accepted (whatever it is defined as in the offer). The higher the earnest money that is submitted, the more appealing your offer is as it shows that you have “good faith” and intent to purchase of the property. That earnest money is then put towards your closing costs, so it’s essentially a deposit on the home.
   

6. Inspection Credits or Repairs
   After your inspection is completed on the home, you can negotiate either credits at closing in order for you to remediate any issues or request the seller pay for repairs to be done prior to closing. You’ll want to be mindful of what kind of market we’re in when requesting for inspection credits/repairs.
   

7. Items in the Property
   That’s right! If the seller has anything in the home that you may want, that is negotiable as well.
   

8. The Inspection
   Though not recommended, having an inspection on the home you are about to purchase is a negotiable term in the agreement. You are not required to have an inspection done on the property, and removing that term/contingency from your offer makes your offer that much more appealing to a seller.