Let’s talk about one of the most misunderstood moments in the home-buying process: Negotiation.
If your instinct is to immediately slash the sales price, you’re not alone. That’s what buyers have been trained to do for decades- smaller list price, smaller monthly payments, right? But here’s the plot twist- that strategy may not actually be the smartest financial move. On paper, negotiating a lower purchase price feels like a victory. Who doesn’t want to “get a deal”? But real estate math doesn’t always work the way our instincts tell us it should.
Instead, you should leave the list price exactly where it is, and ask the seller to provide closing costs. What is a closing cost? This is a set amount of money (usually negotiated to be credited from the seller) used to pay the various fees that come up at the settlement table. While it may seem like small potatoes, here are a few reasons why asking for closing cost coverage might be more advantageous:
Mo' Money, Honey!
Closing costs can easily land around $15,000–$20,000 (sometimes more). That’s real money you have to bring to the table upfront. Lowering the price might shave a few dollars off your monthly payment—but seller-paid closing costs can dramatically improve your immediate financial position.
Think from the Seller's Position
Here’s another part buyers often overlook: Sellers think in terms of net proceeds. Whether a seller accepts a higher sales price minus closing costs or a lower sales price with no concessions, the bottom-line number can be nearly identical. So in many cases, asking for closing costs doesn’t feel like a major concession to the seller, especially compared to reducing the headline sales price. That makes this strategy easier to negotiate and often more appealing to the other side.
Make Your New Neighborhood Stronger!
Keeping the sales price strong supports neighborhood property values, protects future appraisals, and helps your own home start its appreciation journey on solid footing. Your future self (and your new neighbors) will thank you. No one loves being the lowest comp in the neighborhood, especially when it wasn’t necessary.
Negotiation doesn’t have to mean attacking the sales price. Sometimes the smarter move is to: Stop, Pause, and Get strategic. Ask yourself: Where does this negotiation actually help me the most? More often than not, the answer is closing costs, not price cuts. Real estate is full of counterintuitive strategies, and this is one of them. When written correctly, a contract that keeps the price strong while shifting costs can benefit everyone at the table.
If you’re buying soon and want a negotiation strategy that works with the market—not against it—you know where to find us
'Til Next Time,
Jillian Hogan Homes
