Whistler Blog

How to Negotiate and Save Money When Buying a Home

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When you’re looking to buy a home it’s very easy to get caught up in the process, focussing on obtaining a mortgage and arranging funds for a downpayment cost. However, it’s important to remember that there are a number of additional costs that also need to be considered. These closing costs can be an additional 2-5% of the purchase price, which can often be a shock to new buyers.

As a buyer you need to prepare for legal fees, inspection costs, and closing fees as part of the process. And it’s important to note that these fees can be negotiated and reduced, or even removed entirely. We spoke to our Realtors to find out how:

Negotiating with the seller

Negotiating with the seller is one of the best ways to reduce closing costs, however, this relies on the right circumstances being in your favour. It is typically something that would work best in more of a buyer’s market or where a seller is hoping for a quick sale.

In order to reduce closing costs, when making an offer you can ask the seller to cover part, or all, of the closing fees. Depending on the market and the seller’s motivations they may agree or they may come back with a counter offer, proposing a higher price but will all fees paid. This situation could be good for those struggling to come up with the cash for closing fees in the short term, however, this could result in a higher mortgage.

Another option for negotiating with the seller depends on the results of a home inspection. Should any defects be found you can offer to buy the home in its current state, but with the repair costs going towards your closing costs. This can be beneficial for both buyer and seller, as you will have more money, and the seller can sell the home quickly without the burden of renovations.

Pre-Approval Options

You may have heard recommendations to shop around for a mortgage, and this is true. There are lots of different lenders out there so you can afford to be picky with seeking pre-approval. Do your research and compare options from different lenders in order to find the best deal. If you have a preferred lender you can also ask about price matching and show them a better offer from a different lender in order to negotiate the price down.

No Closing Cost Mortgage

One loan option to discuss with lenders is a no closing cost mortgage. This is a loan where the closing costs are covered by your lender and added to your loan, removing the lump sum that you would have to pay upon buying the property.

This can be a good option for those looking for short-term ownership, however, it will increase monthly payments or result in higher interest rates so may not be the best solution for a long-term loan.

Choosing a Closing Date

A closing date is the day that the property officially becomes yours. Depending on which day you choose there can be additional cost responsibilities such as taxes, fees, and utility bills that are all prorated. Choosing a day at the end of the month means that many of these fees will be reduced, opposed to selecting an earlier date.


For more information on closing costs and buying a property in Squamish, get in touch with one of our local Realtors!