Behind every real estate transaction lies a lengthy (and sometimes complex) negotiation where several variables can save (or cost!) tens of thousands of dollars.
Skillful negotiation doesn’t mean “haggling aggressively” but rather understanding in which areas each party is prepared to show flexibility… and those in which they aren’t.
1. The Price (but not at any Price!)
The most obvious thing to negotiate is the price. And it’s also the most strategic.
But reducing the price directly isn’t always the best option.
In a seller’s market, attempting to drastically cut the price might cause the deal to fall through. Conversely, in a slower market, not negotiating at all often means paying too much.
You should base your arguments on
- recently sold comparables (similar houses in the neighbourhood);
- the home’s true condition;
- how long it’s been on the market. (A property that has been for sale for 90 days without receiving any serious offers doesn’t command the same bargaining power as a highly sought-after new listing.)
2. Inclusions (and Exclusions)
Appliances, lighting fixtures, blinds, spa, custom furniture, charging station, shed, high-end lawnmower—anything that isn’t permanently affixed to the property is negotiable.
Some sellers prefer to leave belongings behind rather than move them. For a buyer, however, receiving these items can represent several thousand dollars in immediate savings.
Alternately, excluding certain objects may also contribute to lowering the price.
It’s all part of the negotiations!
3. Presale Repairs
Inspections almost always reveal issues that need to be addressed. The question isn’t simply “to buy or not to buy,” but rather who will pay for the repairs.
Examples include an aging roof that must be replaced, a water leak, a non-compliant electrical panel, a faulty heat pump, or a dangerous balcony.
You can request that the seller
- carry out certain repairs before the signing at the notary’s;
- reduce the price by an amount equivalent to the estimated cost;
- agree to split the costs.
In cases where the property is attracting interest from several potential buyers, agreeing to purchase “as is” can also strengthen the offer… if one is prepared to undertake the necessary work.
4. Possession Date
Many buyers underestimate this point. However, it can make a huge difference for the seller… and serve as powerful leverage.
A seller who is in a hurry to leave may accept a lower price in exchange for a quick sale. Similarly, if the seller’s move is still a few months away, they may prefer a buyer willing to accommodate a later closing date, even if their offer is below the asking price.
5. Pre- and Post-Signing Occupancy
Along the same lines, a seller might wish to stay in the home after the sale, temporarily paying rent. Conversely, a buyer might want access to the residence before the occupancy date to carry out renovations.
These arrangements may seem secondary, but they can significantly influence a seller’s decision, especially when comparing several offers.
6. Compensation Regarding Risks or Deficiencies
When the inspection reveals risks, irregularities, or information that affects the property’s value, additional negotiations become necessary. The same applies if new information about the house comes to light and causes the buyer to change their mind.
These aren’t repairs as described in section 3, but rather legal, administrative, or structural issues that may complicate the new owner’s future life.
Here are some examples: work done without a municipal permit, easements limiting land use, non-compliant septic tanks, old but legal electrical installations, asbestos, insurance difficulties, restrictive co-ownership bylaws, etc.
In such cases, the buyer’s real estate broker will want to renegotiate and not just the price.
7. Financial Adjustments and Fees
Municipal taxes paid in advance, transferable maintenance contracts, contingency fund in a condominium building—all of these elements require financial adjustments at the time of signing.
In some cases, they can be negotiated or clarified to avoid unpleasant surprises.
A property sale entails working out a set of conditions that both parties agree on. A winning offer isn’t necessarily the one that pays the most, but the one that best meets the seller’s needs while protecting the buyer.
And this is exactly when having a RE/MAX real estate broker by your side makes all the difference!