How to negotiate a lower price when buying a house

The days of bidding wars and tight supply are starting to fade. Many local housing markets are more balanced, giving buyers room to breathe — and bargain. While negotiating a home price may sound intimidating, it's a common practice that most sellers expect. With the right strategies, you can walk into discussions confident and prepared. Here are helpful tips to help you negotiate the asking price and more as a buyer.

A successful negotiation starts well before making your first offer on the house .

"Before a buyer even thinks about negotiating, get a preapproval letter and a crystal-clear idea of the home's actual value," Adriana Trigg, Florida-based licensed REALTOR®, said via email. "Don't just take what the home is listed for, but also understand what it's worth based on recent comparable sales and local market trends."

Apply for preapproval with multiple mortgage lenders for an estimate of your loan amount and mortgage rate based on verified income, creditworthiness, and other financials. You can then work with a real estate agent or use websites like Zillow.com or Realtor.com to research your local housing market and get an idea of how much the home is worth.

The agent can also help you look beyond what similar homes sold for. Check the "days on market" (DOM) and price history to see which properties have been on the market for a while and are likely more open to negotiation.

There is no one way to negotiate a home's price, and certain situations call for different strategies. However, these tips may increase your chances of success.

The best real estate agents are experts in the local market and the home-buying process. While every buyer should be as knowledgeable and prepared as possible, you can also lean on your agent to ensure you're not overpaying or overlooking critical details during negotiations.

Find a real estate agent through referrals or a local online search. Verify the agent's license through your state's real estate regulatory agency.

While a home inspection is not always required, it can be critical when negotiating the house price. An inspector can highlight anything from minor inconveniences to major foundation problems.

"One of my favorite strategies is to point out issues from the inspection report in a calm, fact-based way," said Trigg. "You're not insulting the home — you're pricing in the real cost of repairs."

Make a list of the significant issues, especially those that impact the property's value or your safety. You can use the inspection report to ask the seller to pay for repairs or come down on the asking price to cover the cost.

You can also include an inspection contingency in your offer, which lets you walk away if the inspection reveals major damage to the home without losing your earnest money deposit .

During the peak of the seller's marketing, buyers may have waived inspections to get their offer accepted. But, in today's marketing, skipping one is an unnecessary risk. A seller should expect buyers to request an inspection and may be more willing to negotiate on repairs to keep the deal alive.

Repairs aren't the only costs a seller may be willing to cover. You can ask for seller concessions that bring down the overall cost of buying the home.

A rate buydown is a concession that is especially beneficial when interest rates are high. The seller would purchase discount mortgage points on your behalf to temporarily or permanently lower your mortgage rate.

You can also ask for additional allowances, funds for expenses you may incur after closing on the loan — for example, cash to cover a home warranty or your moving expenses.

Seller credits are some of the most common types of concessions. It's a cash credit that goes toward closing costs, such as origination, appraisal, recording, and other loan fees — as well as prepaid expenses, including property taxes and HOA fees.