More Homes, More Negotiating Power: What Minnesota Buyers Can Ask For Right Now

If you’ve been sitting on the sidelines because you’re worried about high home prices, mortgage rates, or getting into another bidding war, there’s something happening in the Minnesota housing market you should know about:

Buyers have more options — and in some situations, more negotiating power.

According to Minnesota Realtors®, the number of homes for sale statewide was up 10.3% year-over-year in August, with more than 20,000 homes on the market. Homes were also taking an average of 51 days to sell statewide, and sellers received an average of 97.5% of their original list price.

That doesn’t mean every seller is desperate to make a deal. And it definitely doesn’t mean every home can be purchased below asking price.

But it does mean that in the right situation, buyers may have negotiating opportunities that were much harder to find a few years ago.

And price is only one thing you can negotiate.

1. Seller-Paid Closing Costs

One of the biggest hurdles for buyers isn’t always the monthly payment — it’s the amount of cash needed at closing.

Depending on the transaction and your loan program, you may be able to ask the seller to contribute toward allowable closing costs.

That could help cover certain expenses associated with purchasing the home and potentially allow you to keep more money in your savings.

For some buyers, negotiating a closing-cost contribution may actually be more valuable than negotiating the same amount off the purchase price.

This is where having your lender and REALTOR® working together can make a big difference. We can look at the numbers and determine which option may benefit you most.

2. A Lower Purchase Price

Yes, price is still negotiable.

But there's a strategy to it.

A home that was listed yesterday, is priced appropriately, and already has multiple interested buyers is very different from a home that has been sitting on the market for 60 days.

That’s why I look at more than the asking price.

How long has the home been listed?

Has the seller already reduced the price?

What have comparable homes actually sold for?

How much competition is there?

Are there other factors that may motivate the seller?

The goal isn't simply to make a low offer. It's to make a smart offer based on the information we have.

3. Repairs After the Inspection

Remember when buyers were waiving inspections just to make their offers more competitive?

That isn't necessary in every situation today.

Depending on the property and the terms of your purchase agreement, an inspection may give you an opportunity to better understand the home's condition and address significant concerns.

That could mean asking the seller to make an agreed-upon repair, provide a credit where appropriate, or renegotiate other terms.

Not every inspection item needs to become a negotiation. Homes aren't perfect, and inspection reports can be long.

My job is to help you look beyond the little things and determine which issues deserve our attention.

4. An Interest-Rate Buydown

Here's one buyers don't always think about.

Instead of focusing solely on getting the seller to reduce the price, there may be situations where negotiating a seller contribution toward an allowable mortgage-rate buydown makes more sense.

A lower interest rate can reduce your monthly mortgage payment, potentially making the home more affordable month to month.

There are different types of buydowns, and not every option works with every loan or transaction, so this is something I would always coordinate with your lender.

The important part is knowing that purchase price isn't the only number worth negotiating.

5. A Closing Date That Works for You

Sometimes the most valuable term isn't money at all.

Maybe you need additional time before closing because your lease isn't up yet.

Maybe you're selling another home first.

Maybe the seller needs a little extra time to move.

Closing dates, possession dates and other timing considerations can sometimes be negotiated to create a solution that works for both sides.

And interestingly, flexibility can occasionally strengthen your offer without requiring you to pay more for the home.

6. Personal Property or Other Terms

Depending on the property and circumstances, there may be other things worth discussing.

Perhaps there's a particular appliance or other personal property you're interested in.

Maybe there are HOA-related items that need clarification.

Maybe timing or another contract term matters more to the seller than squeezing every last dollar out of the purchase price.

This is why I don't believe in treating every offer the same.

The best negotiation starts with understanding what matters to both sides.

More Negotiating Power Doesn't Mean Every Home Is a Deal

This part is important.

Minnesota's market is becoming more balanced, but we're not sitting in a market with an enormous oversupply of homes.

August ended with about 3.5 months of housing supply statewide, while Minnesota Realtors® notes that a healthy, well-supplied market is typically closer to five or six months. Home prices also haven't collapsed — the statewide median sales price actually increased 2.8% from a year earlier to $370,000.

So if a beautiful home comes on the market in a desirable neighborhood and is priced correctly, you may still have competition.

That's where strategy matters.

We don't automatically ask for everything simply because we can.

We look at the property, the seller's position, recent comparable sales, market time, competing offers and your priorities before deciding how to structure your offer.

Don't Just Ask, “How Much Can I Get Off the Price?”

Instead, I encourage buyers to ask:

“How can we structure this offer to put me in the best overall position?”

Sometimes that's a lower purchase price.

Sometimes it's closing costs.

Sometimes it's an interest-rate buydown.

Sometimes it's getting an important repair addressed.

And sometimes the smartest strategy is making a clean, competitive offer because we've found the home that's right for you.

Negotiation isn't about “winning” against the seller.

It's about putting together terms that protect your interests and make sense for your finances and your goals.

The Bottom Line

If you haven't looked at the housing market lately because you're assuming buyers still have to waive inspections, offer thousands over asking and accept whatever terms a seller wants, it may be time to take another look.

More homes are available across Minnesota, and buyers generally have more time and room to negotiate than they did during the most competitive years.

But your negotiating power will depend on the home, location, price point, competition and seller's circumstances.

That's why having a strategy before you write the offer matters.

If you're considering buying in Minnesota, let's talk before you start scrolling through homes. We can look at your budget, your priorities and what's happening in the specific communities you're considering.

Then, when the right home comes along, we'll know what to ask for — and just as importantly, when to ask for it.

Because buying a home isn't just about getting an offer accepted.

It's about helping you make a smart move that you can feel good about long after closing day. #mnrealtor #minnesotarealtor #mnrealty #mnrealestate #ChrissyJHomes

Chrissy J Homes Team