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These 4 costs are negotiable when buying a home, experts say
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Elevated mortgage rates continue to drag on the housing market well into 2024. There’s a shortage of homes for sale, with many homeowners opting to stay put and keep the historically low interest rates they secured in 2020 and 2021, when rates averaged 3.20% and 3.06%, respectively. The housing shortage, combined with elevated mortgage rates and high home prices, has many homebuyers looking for ways to save money on their home purchase.
Securing a lower mortgage, however, may be more difficult in this high-rate environment. For one, many lenders are tightening their lending practices due to the uncertainty of the economy. And with buyers already facing high costs to purchase a home, the option of buying points to lower the mortgage rate isn’t an option for many. However, there are other ways to save when you’re buying a home, experts say.
Compare today’s top rates to see how you can save on a mortgage loan.
These 4 costs are negotiable when buying a home, experts say
There are a number of costs buyers may negotiate during the home-buying process, including the following:
Negotiate the purchase price
Buying a home may be the most expensive purchase you make in your lifetime. Fortunately, the most significant negotiable cost when buying a home is the home itself. But, before haggling with the seller, it’s wise to get a thorough understanding of the market conditions in your local market as well as the seller’s circumstances.
“It’s important to be as aggressive as possible when first trying to put the home under contract,” says Atlanta Realtor Michael Ellman. “Negotiations are all dependent on the sellers’ circumstances. A good agent tries to get details on the seller’s motivation and will use those details, along with the number of days on the market and listing history, to determine an entry offer price. If a home has only been on the market for three days, sometimes the key is just to get the home under contract as quickly as possible and then renegotiate during due diligence.”
Find out how affordable the right mortgage loan can be here.
Mortgage rate and loan fees
The average mortgage rate on a 30-year fixed-rate mortgage loan is currently 7.17% (as of May 31, 2024). However, that doesn’t mean you can’t do better. Remember, lenders want your business and will compete for it. That’s why it’s always a good idea to get rate quotes from multiple lenders to find the best mortgage rate.
Jennifer Sisson, a Utah-based writer and editor, recently secured a lower mortgage loan rate offer by working with three different lenders.
“Just when I thought I’d gotten the best deal, the other guy came in with the same cash to close and a .5% better rate,” says Sisson.
Lisa Gaffikin, a home loan specialist at Churchill Mortgage, says the most popular negotiable item she’s seeing is a seller concession for mortgage points.
“The buyer may ask the seller to pay points to reduce the mortgage interest rate for the entire term of the loan, or in some cases, for the first, second and/or third year,” Gaffikin says. “This negotiation is very successful if all parties understand the benefits and if the principals to the transaction come to a sales price that saves the buyer money and at the same time helps the seller meet their net dollar expectation.”
Home repairs
Including a home inspection contingency in the sales contract allows you to back out of a home purchase if pricey home repairs are discovered during the inspection. If you still want the home, though, you can ask the seller to make the necessary fixes or reduce the home price to offset the repair costs.
“I commonly have sellers kick in for roof, HVAC, plumbing and electrical repairs,” says Joel Carson, president and principal broker at Utah Real Estate. “The way we typically handle that is to show a reduction in the price of the home. It’s built into the loan. The buyer receives the money rather than having the seller make the repairs or upgrades.”
Work with your agent to exercise discretion when negotiating the costs for home repairs.
“I feel the most common repairs that buyers are successful in negotiating with sellers fall into the category of safety issues,” says Gaffikin.
Sellers are often turned off by buyers who negotiate for visible or dated items after the offer is negotiated, Gaffikin says, a practice known as “nickel and diming.”
Don’t forget closing costs
Closing costs, such as appraisal and loan origination fees, can add another 2% to 7% of the home’s purchase price on top of the loan amount. In other words, if you purchase a $350,000 home, expect to pay another $7,000 to $24,000 in closing costs.
Thankfully, closing costs may also be negotiable, as many motivated sellers are willing to cover a portion of the costs to make the home more affordable. Sellers can contribute up to 6% of the purchase price towards the buyer’s closing costs with most loans. In competitive markets, this practice may be less common. Still, it’s worth exploring because paying some closing costs is one way a seller can push a deal across the finish line, and receive a tax credit in the process
Williams Sonoma
If you’re seeking restaurant-style nugget ice or just a way to make ice quickly for parties, a countertop ice maker may be right for you and your kitchen. They’re a great option if your refrigerator doesn’t have a built-in ice maker.
When shopping for a countertop ice maker, consider how much ice it can make per day, plus what types of ice it makes. When it comes to technology, some ice makers keep it simple, while others can be controlled through your smartphone. And consider how you would like to refill your ice maker. Some ice makers must be manually refilled while others come with an inlet hose.
Ahead we’ve rounded up the best countertop ice makers from GE, Frigidaire, Igloo and more brands. Say goodbye to smelly, freezer-burned ice from your ice cube tray with one of the appliances ahead. They make fresh ice much faster than your standard ice tray in the freezer.
Best ice makers of 2024
All of the options below have a 4.0 or higher review score.
Most popular ice maker: Silonn countertop ice maker
Amazon
This No. 1 bestseller on Amazon takes just six minutes to make nine bullet-shaped ice cubes and can make 26 pounds of fresh ice in just 24 hours. The Silonn countertop ice maker has more than 27,000 reviews and a 4.4-star rating.
This countertop ice maker is self-cleaning and comes with an ice scoop. It can make two sizes of bullet ice. Find the Silonn countertop ice maker in eight colors at varying prices.
This 4.4-star-rated ice maker is currently on sale at Amazon with an instant coupon.
Best splurge ice maker: GE Profile Opal 2.0 nugget ice maker with Wi-Fi
Williams Sonoma
There’s ice and then there’s nugget ice. Nugget ice is the soft, easy-to-crunch ice that’s used in some of your favorite fast food drinks. Because there’s trapped air, nugget ice lasts longer in drinks. Its softer texture, meanwhile, makes it ideal for use in summery blended drinks.
This splurge-worthy ice maker from GE is available in two colors, with the more budget-friendly option being stainless steel. You can request fresh ice from your smartphone, Alexa or Google Assistant and have it ready in 20 minutes. It makes up to 24 pounds of ice a day and comes with a scoop.
It’s rated 4.3 stars and currently on sale for $480 at Williams Somnoma.
Best budget ice maker: Countertop ice maker
Amazon
This bullet ice maker with a handle is your most affordable option and still makes up to 26 pounds of ice in 24 hours. It can make nine ice cubes in as little as six minutes. This budget-friendly ice maker has won the hearts of many reviewers, with a 4.5-star rating on Amazon.
We like that this model is self-cleaning. It comes with an ice scoop. Choose between five color options.
This 4.5-star-rated ice maker is currently on sale for $80 with an instant coupon.
Best value ice maker: Frigidaire ice maker
Amazon
This more affordable Frigidaire ice maker makes two sizes of ice. It can produce up to 26 pounds of ice per day, with the first batch ready in as little as six minutes.
“It’s cool because if you just need some ice for a small party, you can make enough within about 20 minutes,” an Amazon reviewer says. “[This machine is] also very beautiful.”
Find this ice maker in four colors. It comes with a scoop and is rated 4.5 stars.
Best ice maker for bullet ice: Kissair countertop ice maker
Walmart
This affordable ice maker with a handle makes up to 26 pounds of bullet-shaped ice. It can have nine bullet-shaped ice cubes ready in as little as six minutes.
This portable ice maker is self-cleaning and comes with an ice scoop. Its handle makes it easy to transport. It’s rated 4.5 stars, comes in five colors and is currently discounted $72 at Walmart.
Most stylish ice maker: Igloo automatic ice maker
Amazon
This Igloo ice maker comes in fun colors, as well as classic colors like white and stainless steel. It makes up to 26 pounds of ice in 24 hours or nine ice cubes in as little as seven minutes.
This ice maker produces two ice cube sizes and is equipped with a self-cleaning feature. It also includes a convenient ice scoop and has received a 4.1-star rating.
Starting next week, the price of a “Forever” stamp will increase by a nickel to 73 cents, the second time the United States Postal Service has raised the cost of postage this year.
The price of a Forever stamp has steadily climbed since they cost 41 cents when the USPS introduced them in 2007, most recently in January when the agency raised the price from 66 cents to 68 cents.
Other postage rates are also set to jump. Mailing a postcard domestically will cost 56 cents, a 3-cent increase, while the price of mailing postcards and letters internationally are both rising by a dime to $1.65. Overall, postage costs are rising 7.8% increase, USPS said in a statement in April.
“These price adjustments are needed to achieve the financial stability sought by the organization’s Delivering for America 10-year plan,” the agency said at the time.
The new postage rates take effect on July 14.
By contrast, the price of renting a Post Office Box is not going up, and USPS will reduce the cost of postal insurance 10% when mailing an item, according to the agency.
Postage prices may be rising, but customers also have more Forever options to choose from. USPS in June began offering two new Forever stamps — one that depicts baseball legend Hank Aaron and another that pays homage to Canadian-American game show host Alex Trebek.
Aaron held professional baseball’s home-run record for three decades until it was broken in 2007, while Trebek hosted Jeopardy until he died of pancreatic cancer in November 2020.
The USPS this year has also launched Forever stamps honoring former First Lady Betty Ford, University of California Los Angeles men’s basketball coach John Wooden and some of the conductors of the Underground Railroad.
Still, the postage increases are hurting mail volume as well as the USPS’ bottom line, some critics says. The agency in November reported a $6.5 billion loss for fiscal 2023 and is projecting a $6.3 billion deficit in 2024, according to Keep US Posted, a nonprofit advocacy group.
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