Real Estate Negotiation 2025: What Can You Negotiate?

Real Estate Negotiation 2025: What Can You Negotiate?

Real estate negotiation 2025 is a whole new game for homebuyers. Market conditions in 2025 have shifted, giving buyers—from first-time buyers to seasoned investors—more leverage than they had a few years ago. This means real estate negotiation 2025 strategies can yield better deals on pre-construction condos, assignment sales, and resale homes. In this post, we’ll break down what you can negotiate in each scenario. The tone is helpful and clear, with expert tips for buyers in general, first-timers, and investors alike.

Negotiating Pre-Construction Deals in 2025

Pre-construction purchases (new condos or homes bought from a developer before they’re built) require a unique approach to real estate negotiation 2025. Builders often set fixed prices, so haggling the base price might not get you far. However, there are many other items you can negotiate to save money or add value:

• Upgrades and Finishes: Instead of a price cut, ask the builder for free or discounted upgrades. Common negotiables include premium countertops, better flooring, or upgraded cabinets. Builders in 2025 are more open to providing complimentary upgrades to secure a sale. For example, getting hardwood floors throughout or higher-end appliances at no extra cost can add value to your unit. It never hurts to ask for these extras—there’s no shame in trying to get the best deal.

• Closing Costs and Fee Caps: New construction comes with hefty closing costs (development levies, utility hook-ups, land transfer taxes, etc.). Many builders will negotiate a cap on these fees so you’re protected if costs rise by closing. Try to secure a hard cap (an absolute limit on what you pay) on development charges and other fees. Capping closing costs can save you thousands if municipal levies increase before your home is ready.

• Deposit Structure: Pre-construction deals usually require a 15–20% down payment, broken into instalments. In a slower 2025 market, deposit schedules have become more negotiable. By simply discussing it with the builder, you might extend the payment timeline or reduce the size of each instalment. For a first-time buyer with limited savings, negotiating a stretched-out deposit schedule can be a lifesaver.

• Assignment Rights: If you’re an investor or unsure about your future plans, negotiate the right to “assign” the contract (sell it to someone else before closing) at the time of purchase. Many builders allow assignments but often charge a fee (several thousand dollars or a percentage of the purchase price). In 2025, a skilled real estate negotiation can sometimes get the assignment fee waived by the builder. Securing a free assignment clause upfront gives you flexibility to exit the deal if needed, which is especially valuable for investors.

• Other Builder Incentives: Remember that builders want to move units, especially when buyers have more choices. In 2025, many developers are offering incentives to sweeten the deal. These can include covering some of your closing costs, providing a lower mortgage rate through a preferred lender, or throwing in extras like a parking spot or storage locker. In fact, roughly 60% of builders late in 2024 and early 2025 have been offering special incentives (rate buy-downs, closing cost assistance, free upgrades) to attract buyers. First-time buyers should definitely ask about help with closing costs or a lower interest rate, as these incentives make homeownership more affordable.

Expert Tip: When tackling a pre-construction real estate negotiation 2025, consider enlisting an experienced real estate agent (a “platinum” agent for new condo projects). They often have relationships with builders and know what’s reasonable to ask for. For instance, an agent who’s sold many units in a development might get special treatment for their clients, like better upgrade packages or extended deposit terms. Don’t be afraid to negotiate – the 2025 market conditions mean builders are more willing to deal, but if you’re not comfortable, let a pro handle the bargaining.

Negotiating Assignment Sales in 2025

An assignment sale is when the original buyer of a pre-construction property sells their purchase contract to a new buyer before the home is completed. In 2025, assignment sales have become more common as some buyers face changed circumstances (higher interest rates, inability to close, etc.). This creates an opportunity for savvy buyers to negotiate a great deal on essentially a “new” home without the long wait.

Here’s what you can negotiate in an assignment scenario as part of your real estate negotiation 2025 plan:

• Purchase Price (Contract Price): Often, assignment sellers in 2025 are not looking to make a huge profit – many just want to recover their deposit and move on. With the market cooling, some assignment listings are even priced below the original contract price.

  In fact, some desperate sellers are willing to take a loss, effectively offering the unit at a discount of up to their full deposit (around 20%) in order to find a buyer. This means as a buyer you should absolutely negotiate on price; you might be able to acquire the property for significantly less than what it would have cost to buy new from the builder. Investors especially will want to negotiate hard here – if the original buyer is in a bind, you have leverage to ask for a lower price.

• Who Pays the Assignment Fee: Typically, the builder’s consent is required to complete an assignment, and the builder may charge an assignment fee (often a few thousand dollars or a percentage of the price) for paperwork and permission. A key point of negotiation in 2025 is which party pays that fee. Sometimes the original buyer (assignor) is responsible, but they may try to pass it to you (the assignee). You can negotiate that the seller covers the assignment fee, or split it, especially if the market is in your favor. If the seller is eager to have you take over, they may agree to pay the builder’s fee out of their proceeds as an incentive for you.

• Timing and Conditions: While an assignment sale usually means you take on the contract “as is” (no changes to the unit or closing date), you can still negotiate some terms with the seller. For example, you might request a longer closing timeline if both parties agree and the builder permits it, giving you more time to arrange finances. You’ll also want to negotiate when and how much you pay the seller.

  Typically, the buyer reimburses the seller’s deposit and pays their profit (if any) at the time of assignment. You could negotiate to make a portion of that payment later or adjust the schedule if the seller is flexible. Always involve a real estate lawyer in reviewing an assignment agreement to protect your interests.

• Included Upgrades or Extras: If the original buyer purchased any upgrades or extras from the builder (parking space, storage locker, premium finishes, etc.), clarify if those are included in your price. It’s reasonable to negotiate that you’re taking over all the benefits the original buyer secured. For instance, if they paid the builder for an upgraded appliance package, you shouldn’t have to pay extra for it in the assignment – it should be part of the deal. Make sure the contract lists all such items. In 2025, many original purchasers may have negotiated incentives (like capped fees or upgrade credits), and as the new buyer you stand to inherit those. Confirm and negotiate accordingly so you get full value.

Expert Tip: Conduct due diligence on the market value of the unit before finalizing an assignment negotiation. If comparable new units are selling for less now than the original purchase price (which can happen in a cooler market), use that information to justify a lower price. Remember, assignment deals in 2025 often favor the buyer – some sellers are very motivated to assign because they either can’t close or don’t want to.

One report noted that many original buyers were prepared to walk away from their 20% deposits due to market conditions, meaning assignment buyers can sometimes step into a property at a significant discount. This is a prime time for investors to snag deals, but first-time buyers can benefit too if they have the resources for the larger down payments that assignments usually require.

Negotiating Resale Home Purchases in 2025

The resale market (buying an existing home from its current owner) in 2025 has tilted in favor of buyers in many regions. After years of seller’s market conditions, Ontario’s 2025 market is much more balanced – even a buyer’s market in some cities. There is more inventory (houses for sale) and less frenzy, which means buyers can negotiate confidently without as much fear of losing the deal. Here’s what you can negotiate when purchasing a resale home in 2025:

• Purchase Price: Price is the most obvious point to negotiate. In 2025, with home prices leveling off or even dropping in some areas, you often have room to offer below the asking price. Sellers know that buyers have more options (Ontario had the highest number of listings in a decade by mid-2025), so a reasonable lower offer has a better chance now than it did during the boom. Use recent comparable sales as evidence and don’t be afraid to start a bit low (but still fair).

  If a property has been on the market for a while, that’s a clear signal the seller might entertain a discount. Investors who can pay cash or close quickly might negotiate even steeper price reductions in exchange for a fast, hassle-free deal.

• Conditions and Contingencies: During the ultra-hot market a few years ago, buyers often had to waive protective conditions (like home inspections or financing) just to win a bidding war. In 2025’s real estate negotiation climate, you can and should negotiate for reasonable conditions. For example, include a home inspection condition – and if the inspection reveals issues, you can negotiate repairs or a price reduction before finalizing the deal.

  First-time buyers should definitely have an inspection and can negotiate that the seller fix certain problems or credit them money for repairs. Financing conditions are also common again; you can negotiate an offer that’s conditional on getting your mortgage approval, which protects you if rates or appraisals pose challenges. Sellers in 2025 are more willing to accept these conditions because they know the market isn’t as heated.

• Closing Date and Possession: The timing of the closing (when you take ownership) can be a negotiating point. Maybe you want a longer closing to arrange the move, or perhaps you prefer a quick closing. In many cases, if you accommodate the seller’s ideal timeline, you might get a better price. Conversely, if the home is vacant or the seller has already moved, they might accept a lower price for a faster close (to stop covering expenses on an empty home).

  Talk with the seller about needs – in 2025’s balanced market, there’s more flexibility to find a win-win on dates. Investors might negotiate a quick close for a discount, while first-time buyers might ask for a closing date that lines up with the end of their lease, for example.

• Inclusions (Fixtures, Appliances, etc.): Don’t assume everything you see is included with the house. Negotiate for the items you want to stay. It’s common to have kitchen appliances, light fixtures, and window coverings included in the sale, but if a listing excludes something (say, that new washer/dryer or a chandelier you love), you can request it in your offer.

  In 2025, sellers are more inclined to agree to such requests, especially if they help keep the deal together. If a first-time buyer needs a turn-key home, they might negotiate for furniture or lawn equipment to be included. These personal property items can sometimes be bargaining chips – maybe you pay a slightly higher price but get a fully furnished setup, saving you money and effort.

• Seller Concessions: Depending on the local custom (and this is more common in some U.S. markets, but can apply in Canada too in a slow market), you could negotiate for seller concessions. This means asking the seller to cover some of your closing costs or to provide a cash credit for updates/repairs. For instance, if the home inspection finds the furnace is at end-of-life, you could negotiate a price reduction or ask the seller to replace it before closing.

  In Ontario, it’s not typical for sellers to directly pay a buyer’s closing costs, but if a house has been hard to sell, a motivated seller might agree to a credit (effectively lowering the price). Always put these agreements in writing in the offer. In a buyer-friendly 2025 market, you have more room to ask – politely, backed by rationale – and the seller may concede to reasonable requests to keep the sale on track.

Expert Tip: Do your homework on local market trends. In 2025, many areas in Ontario are seeing buyers regain the upper hand. Knowing that supply-demand conditions have shifted in buyers’ favour should give you confidence in negotiations. Still, every neighbourhood is different.

Work with an experienced real estate agent who can tell you how much competition there is for the type of home you want. If a home is overpriced or has been listed for a while, use that in your negotiation strategy. On the other hand, if a house is newly listed and you love it, negotiate respectfully—don’t lowball so hard that you alienate the seller. The goal is to get the best value while keeping the seller willing to work with you.

Final Thoughts

Whether you’re a first-time homebuyer or an investor, real estate negotiation 2025 is all about understanding your leverage and knowing what’s on the table. The key things you can negotiate—upgrades, fees, prices, conditions—will vary by scenario, but in every case being informed is your best asset. The real estate landscape in 2025 favors prepared buyers: there’s less frenzy and more opportunity to secure favorable terms.

Always approach negotiations with a clear idea of your must-haves and nice-to-haves. Be polite and factual; for example, reference market data or specific costs when making requests. And remember, you don’t have to go it alone. Enlist a knowledgeable real estate agent and real estate lawyer, especially for complex deals like pre-construction and assignments. With the right help, you can confidently navigate real estate negotiation 2025 and come out with a deal that protects your interests and saves you money.

Ready to Start Negotiating?

The market in 2025 gives you more power than ever as a buyer. Don’t leave money on the table. Contact our expert agents today to guide you through every step of your purchase and help you secure the best deal possible.