Want an even better deal on the house you're thinking about buying? Don't forget to negotiate. Today it's a buyer's market and with a little effort on your part, you may be able to save even more. Here's what you should definitely try to negotiate.
Closing costs Sellers usually pay all costs associated with closing, especially when they're dealing with first time homebuyers. But even if you're moving up, you should still try to get the seller to pay these costs. Today's sellers are making concessions in order to make sales. The only way you'll know if a seller will pay these costs is by asking.
Points Besides having great credit, low debt and a steady job, paying points is another way get the lowest mortgage rate. Again, try negotiating with the seller to see if he's willing to cover the cost of your points. Even when sellers pay points, you can still deduct them at tax time. One point equals one percent of the amount of the mortgage and translates into an interest rate reduction equal to an eighth of a percentage point.
Closing date Negotiate a closing date that makes most sense for you. Need to move in soon? Just ask. Sellers who can't move that quickly often will make concessions, like allowing buyers to store their belongings in the home or paying for a storage unit. If you need more time to accumulate down payment funds, a seller might agree to postpone the sale and rent you the home until you're ready to buy. In this case, the seller can use the rent money to pay the mortgage.
Home improvements Want the basement finished or a new air conditioner installed? Ask the seller and see what happens. You won't know what type of home improvements/repairs the seller will make until you ask.
Allowances If the home has damaged or dated carpet or outrageously-colored or chipped paint on the walls ask the seller for an allowance. Sellers often make allowances worth several thousand dollars. Sellers may also do the work before they move out so you don't have to.
Home repairs Except in situations where a property is being marketed "as is" sellers are required to make certain repairs to ensure the home is habitable. However, even in "as is" sales, sellers may agree to make certain repairs or they may offer an allowance. Remember, if you don't ask, sellers probably won't offer.
