Valley homebuyers can negotiate better deals in the current market — here's how

Liz McDermott

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Metro Phoenix real estate is experiencing a buyer’s market thanks to increased inventory of homes and price reductions as sellers attempt to meet buyers closer to their expectations, a trend reflected nationwide. But what does that mean for Valley homebuyers?

According to a recent report, there are nearly 500,000 more sellers than there are buyers in the U.S. Here’s my advice for those looking to negotiate the best price for their next home:

Get preapproved for loan

Before submitting an offer to a seller, it is critical to work with a licensed Realtor® and get preapproved for a loan. Due to high interest rates, buyers need a clear understanding of what they can afford.

Mortgage preapproval also boosts a buyer’s credibility in the eyes of a seller — it’s proof the buyer can perform on their contract, and keeps the buyer competitive since preapproved loans have a lower risk of falling through.

Preapproval also can prevent scenarios in which a buyer has already submitted an offer for a home, only to find that they have been approved for a loan much lower than their submitted offer. Such situations waste time for the buyer, agent and seller.

Preapproval also assists the agent in negotiating rate buydowns and knowing exactly how much to ask for to be in line with the buyer’s budget.

Leverage home inspection results for seller concessions

Having a property inspected before submitting an offer isn’t just a safety necessity — the process can identify expensive items that need to be replaced and repaired, and can be cited later as possible seller concessions.

Most issues identified during an inspection can be leveraged for concessions. Some of the most common are electrical and plumbing issues, which aren’t immediately visible when walking through a property.

Out-of-state buyers may not realize the signs of a termite infestation, nor think to ask about a pool’s filter or heater. I worked with a client in Cave Creek who successfully negotiated a $10,000 credit to have a property’s pool resurfaced after a home inspection. Other defects commonly identified include A/C unit malfunctions, sewer line issues and roof degradation.

Working with an agent to request concessions from a seller is recommended. Realtors can help their buyers put together a buyer’s inspection notice and seller’s response, known as a BINSR, to itemize issues identified during an inspection.

This list includes real quotes for each requested repair to give the seller a realistic expectation for costs and to help the buyer receive as much money as possible to cover repairs. Because quotes included on a BINSR are sourced from professional repair companies, the seller is reassured that concessions requested are legitimate.

What else is negotiable?

Beyond the findings of home inspections, buyers also can request rate buydowns, which equate to lower home mortgage fees, and closing cost assistance from a seller. Occasionally, sellers are willing to part with personal property, such as high-quality furniture or appliances, as part of their deal to buyers.

Finally, buyers can negotiate a rent buy-back with sellers, which is a post-possession agreement for sellers who need extra time during the moving process. Because the property has already sold to the buyer and the seller still occupies the home, the seller becomes a tenant to the buyer and pays costs for the duration of their time residing there.

Summer 2025 is a great time to be a buyer, and when leveraging smart negotiation tactics and the professional connections of a licensed real estate agent, it is possible to find one’s dream property within budget.

Editor’s note: Liz McDermott is a licensed Realtor® with HomeSmart, based in Scottsdale. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.