Price, Repairs or Closing Costs? What First-Time Homebuyers Should Negotiate First
First-time homebuyers in the United States have been making a lot of history over the past year or so, though it’s not necessarily the good kind.
In 2025, the overall market share of first-time buyers fell to a record low of 21%, according to the National Association of Realtors. Meanwhile, the median age of first-time buyers rose to an all-time high of 40 years old.
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These two dynamics reflect a challenging environment for first-time buyers. They must contend with not only historically high prices but also limited inventory. This makes it even more important to negotiate effectively with sellers to ensure you land the best deal. Here’s a look at a few things first-time homebuyers should negotiate first, according to experts.
First, Assess the Market
Before going into negotiations, it’s important to determine whether you are purchasing a home in a buyer’s market or a seller’s market. This can make a big difference in terms of how much actual negotiating power you have.
You can get an idea of a market’s strength or weakness by researching recent trends involving price movement and days on market. Once that’s done, you need to find the right agent, according to Cappy Hagman, a Realtor and broker at Coldwell Banker Howard Perry and Walston in Raleigh, North Carolina.
“Buyers need to find a buyer’s agent who really pays attention to the local trends,” Hagman told MoneyLion. “Some firms/agents don't bother with the data.”
What To Negotiate First
No matter where you’re buying your first home, the first thing you should negotiate is price, said Jeff Lichtenstein, broker and CEO at Florida-based Echo Fine Properties.
“Price is almost always the most important item to negotiate,” Lichtenstein told MoneyLion. “The first question you should have your realtor ask the seller is, ‘How did they come up with the purchase price?’ The second question is ‘What is the purpose of selling?' Those give you a lot of clues.”
That doesn’t mean you should push too hard when negotiating, however. A lot depends on factors such as supply and demand – and how much you need or want a particular home.
“If there isn't good replacement inventory, then be careful of negotiating too hard,” Lichtenstein said. “At the same time, you are negotiating terms such as the amount down, closing date, time for inspection and time for mortgage approval.”
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Have the Seller Make Repairs
The next thing you should negotiate is repairs – especially if the home needs a lot of fixing.
Home inspections can uncover issues with the home and provide a “great opening” to ask sellers to foot the bill for repairs, according to Veterans United Home Loans.
Pay particular attention to structural issues, such as faulty wiring, cracked foundations, roofing problems or moisture in the basement. If you don’t have these dealt with before buying the home, you could face years of expensive repairs.
Other Items To Negotiate
Once you have negotiated price and repairs, you can move on to other items of importance.
Here’s a quick rundown:
Closing costs: Having the seller cover some of the closing costs is a good way to recoup money if you can’t negotiate the best home price. These costs typically include items like application, legal, inspection and mortgage fees.
Titles/commissions: One negotiating tactic Lichtenstein recommended is to “reverse out” who pays for title and commissions if you’re in a state where taxes are set by the property price. “If you as the buyer pay for the closing costs and all commissions, take that amount and lower the price,” he said. “You can probably have the lower recording number as your tax base. Each year you own the home, the cumulative effect adds up.”
Furniture: Sellers are often willing to include furniture in the purchase price if you negotiate that as part of the deal. This could save you a lot of money when it comes time to furnish the home.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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