You Get to Pick One: Price or Terms
How Negotiation Strategies Can Make—or Break—Your Real Estate Deal
When it comes to buying property, many buyers enter negotiations with a clear goal: get the best deal possible. But what constitutes the “best deal” isn’t always about the lowest price. In reality, buyers are often faced with a choice: negotiate the price down or win on the contract terms. Rarely do both come easy—and understanding this tradeoff can make all the difference between a smooth transaction and a deal that falls apart.
The Tug-of-War Begins: Price vs. Terms
Let’s say you find a property you love. The list price is $550,000, but you think it’s only worth $525,000. You submit an offer accordingly. The seller counters at $540,000 but is willing to let you choose the closing date, waive contingencies, or allow a flexible inspection period. Do you press further on the price? Or do you take the contract advantages and lock in the deal?
Now consider the above example and throw in seller financing at 1% for 30 years. All the sudden the terms appear far more delicious. These terms, while a little ridiculous, highlight my point of price vs terms.
This is the essence of the property negotiation game: one side might budge on price if the other concedes on terms—and vice versa.
Why You Can't Always Win Both
The reality is simple: sellers want to net the most money with the least amount of risk or delay. Buyers want to pay the least with the most protections and flexibility. Something has to give.
If you push hard on price, expect the seller to tighten up the terms:
Shorter due diligence periods
Non-refundable earnest money
“As-is” sale conditions
Reduced flexibility on closing timelines
Alternatively, if you agree to a full-price offer (or close to it), the seller may be more open to favorable terms:
Longer inspection periods
Contingencies for financing or appraisal
Seller-paid closing costs
Repair credits or post-closing occupancy
In competitive markets, the balance often shifts even more dramatically. A buyer might win a bid by offering above asking—but include contract terms that protect their risk. In softer markets, sellers may be more price-sensitive and less concerned about contingencies, giving buyers room to negotiate on both fronts—but this is the exception, not the rule.
How to Decide Which to Prioritize
Ask yourself:
Is the property unique or hard to replace? If yes, prioritize terms that give you flexibility.
Are you in a strong cash position? Use that leverage to win on either front.
Is the market hot or soft? In a seller’s market, terms may matter more than price. In a buyer’s market, you might have more room to push on both.
What’s your risk tolerance? Are you okay waiving inspections for a better price? Or do you prefer protections even if it means paying a little more?
Smart Negotiators Weigh the Whole Package
The smartest buyers and agents look at the entire offer—not just the price. A seller might accept a lower offer that guarantees a fast close with few contingencies. On the other hand, some sellers will wait out a higher price even if it comes with a few more hoops to jump through.
Ultimately, every real estate transaction is a puzzle. You may not be able to fit every piece exactly the way you want—but if you understand the tradeoffs, you can assemble a deal that works.
Final Thought
In property negotiations, trying to “win” on both price and contract terms is like trying to hold the rope from both ends. At some point, you have to choose what matters more. A great deal isn’t always about the lowest number—it’s about the right balance. And sometimes, that means letting one side of the negotiation pull a little harder—so you can cross the finish line with a deal that actually closes.