Erin Bendig
Homebuyers are gaining leverage again. Sellers gave concessions to buyers in 44.4% of U.S. home-sale transactions in the first quarter of 2025, according to Redfin. That’s up from 39.3% a year earlier and just shy of the 45.1% record high set at the start of 2023.
With mortgage rates remaining high, more sellers are sweetening the deal. The average 30-year fixed mortgage rate sits at 6.27%, down just 0.17 percentage points from a year ago, according to Freddie Mac. As a result, sellers are offering incentives such as covering buyers' closing costs, paying for home repairs, or buying down mortgage rates to make monthly payments more affordable.
Even with these shifting dynamics, many buyers don’t realize just how much room they have to negotiate. “Many times, home buyers aren’t aware that they can negotiate for things other than a home’s sale price,” says Jason Gelios, a real estate agent at Community Choice Realty in southeast Michigan.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Here are five things home buyers can negotiate in addition to home prices.
Mortgage rate and lender fees
Around seven out of 10 prospective buyers said in a 2023 survey conducted by John Burns Research and Consulting that they’re waiting for mortgage rates to drop below 5.5% before they purchase a home. According to Freddie Mac, as of May 2, 2024, the 30-year fixed-rate average has increased for the fifth consecutive week, reaching 7.22%.
However, mortgage rates aren’t set in stone. “Buyers tend to let the lender set the rate, but the interest rate is often negotiable because lenders want their business,” says Gelios. That’s especially true in today’s market, where lenders are competing for a limited number of buyers.
It’s also a good idea to shop around. Nearly half of borrowers that compared rate offers said the first quote they received was not the lowest mortgage rate, a May 2022 LendingTree survey found. That mirrors a study by Freddie Mac, which determined that buyers who obtained two rate quotes during October and November 2022 could have saved as much as $600 annually, while buyers who obtained at least four rate quotes could have saved more than $1,200 annually.
Use our tool below, powered by Bankrate, to compare mortgage rates today.
Some lender fees are also negotiable, says Brendon DeSimone, a real estate broker at Houlihan Lawrence in Bedford, New York. “Sometimes there are ‘processing fees’ that are basically junk fees,” he says. Loan origination and application fees are up for negotiation, too, per Gelios. (The average origination fee is between 0.5% and 1% of the loan amount, according to Rocket Mortgage.)
When making an offer on a house, see if the seller is willing to pay for a “buydown,” a one-time fee at closing that would lower your mortgage rate, either for the full duration of your loan or for a few years.
Home repairs
Don’t want to buy a house that turns into a money pit? Include a home inspection contingency in your offer.
This contingency gives you the right to have the property inspected by a professional. Based on the results, you can either back out of the deal or ask the seller to make certain repairs.
Gelios advises you to keep your eye on the end goal. “Focus on major issues when asking for repairs,” he says. “A leak in the roof or a busted water heater are important to fix.” Don’t harp on cosmetic flaws. “A missing light bulb or a broken latch on a window are things that you can do yourself without the seller’s help,” per Gelios.
If the seller pushes back, see if they’d be willing to offer you a credit at closing to offset some of the repair costs.
Seller-paid closing costs
Closing costs are fees paid at settlement to third parties that facilitated the sale. Usually, the buyer pays the lion’s share — typically around 2% to 6% of a home's sale price. But a growing number of sellers are offering to cover a portion of the buyer’s closing costs.
These seller-paid closing costs can make a home purchase significantly more affordable. Make sure to negotiate them upfront so that they can be woven into the purchase agreement.
Fixtures
A real estate fixture is any object that’s permanently attached to a property. “The general rule is if you turned a house upside down, whatever sticks to the house is supposed to stay with the property,” Gelios explains. For example, built-in bookshelves, ceiling fans, and window treatments are typically seen as fixtures included with a home.
Some fixtures, however, are up for negotiation. These could include things like refrigerators, washer and dryer sets, chandeliers, outdoor furniture and playground sets.
“Your purchase agreement should state all of the specific fixtures that you want to stay,” Gelios recommends. To protect his buyers, Gelios typically writes in offers, “All appliances and fixtures, as shown, convey with the property.”
Home warranties
If you’re buying an older home, a home warranty can provide some financial protection and peace of mind.
A home warranty covers the cost of repairing or replacing certain home appliances when they break, such as refrigerators, dishwashers, ovens, water heaters, and heating and cooling systems — though coverage can vary, depending on the policy.
A home warranty typically costs $360 to $900 a year, according to a 2024 MarketWatch study of 39 providers. For many sellers, that’s a drop in the bucket, so see if the seller will pay for a one-year warranty. “Sellers can provide it as a credit at closing if the buyer wants to choose the home warranty company,” says Gelios. “It’s a good, low-cost way for sellers to seal the deal.”
Related Content
