Many potential homebuyers are on the sidelines as the Federal Reserve announced another interest rate hike earlier this month. But there are ways to make homebuying a little more affordable. News4 spoke with some experts about ways to negotiate for a home beyond the price.
With the rise of interest rates, markets have slowed down.
"The buyer has an upper-hand on the seller because these prices are adjusting. Now, the sellers are starting to get nervous that their home is sitting on the market more than a week now," mortgage expert GP Theriot said.
That could drive home prices to fall this year. However, Theriot said buyers should avoid making low-ball offers if they're looking to buy a forever home anytime soon.
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"We're coaching our clients, consulting them how to approach when they're making an offer to have the seller buy down their rate. And that's huge," Theriot said.
A buydown is when a borrower pays the lender more money upfront at closing to obtain a lower interest rate.
That strategy could make a bigger savings dent on the mortgage payment than offering a couple of thousand dollars less on the home.
"So, when negotiating on either side, buyer or seller, keep in mind that there is a whole lot to negotiate beyond just the bottom line price," said Holden Lewis, a mortgage expert for NerdWallet.
Six things to negotiate:
- Home repairs such as a new roof
- Tax transfer
- Title insurance
- Buying down your rate
- Buying a home warranty to cover future home repairs
- Contributing to closing costs
Because there's room for negotiation and it's a buyer's market, buyers can also raise their home search by $20,000 over the budget to increase the number of homes in their search and test negotiation skills.
