Price isn't the only lever you can pull. Here's what actually moves a seller and what doesn't.
The good news is, you can negotiate almost anything in a real estate transaction. The better question is ,what actually moves the needle with a seller.
The first step in any negotiation is simple. Call the listing agent and ask what the seller wants. Sometimes it's list price and a 30-day close. Other times the agent will tell you the seller is motivated by something specific, like timing.
At the end of the day, most sellers are driven by two things: time and money.
Earnest money
Earnest money typically runs between 1% and 3% of the purchase price. On the low end, 1% is acceptable but may not signal serious intent to the seller. On the high end, avoid going above 3%, since that's the threshold tied to arbitration limits in the contract, and going higher only adds exposure without much benefit.
It's worth understanding that earnest money doesn't change what the seller nets at closing. Whether you put down $10,000 or $40,000, the seller receives the same amount at close.
Where earnest money matters is in the event of a default. A larger deposit gives the seller more protection if you cancel outside the contract's normal terms, which can make you look like a more serious buyer, even if it's not the deciding factor.
Price, closing timeframe, and down payment
Price is the obvious lever, but timing matters more than people expect. Some sellers want the fastest possible close because they believe a shorter escrow period is less likely to fall apart.
Others prefer a longer close because they haven't found their next home yet. The only way to know which situation you're dealing with is to ask.
Down payment size can range anywhere from 3.5% to 40% or more, and while it doesn't change what the seller nets, a larger down payment can make a buyer look more qualified on paper.
That said, it's not a perfect signal. Plenty of all cash deals fall through, and plenty of low down payment buyers close without issue.
Buyers who are only barely qualified do tend to carry more risk of the deal falling apart, simply because more has to go right to get to the closing table.
Smaller items and contingency timeframes
Smaller negotiable items include termite treatment (which can run $5,000 to $9,000 if a lender requires it), insurance costs, and home warranties, generally $500 to $1,500 range items. These rarely make or break a deal on their own, but they add up.
Contingency timeframes are another lever. California's standard purchase contract gives buyers 18 days to complete due diligence. At the end of that period, you formally accept the property, reject it, or conditionally accept it pending specific fixes.
If something significant comes up that you couldn't have known about when you wrote the offer, you can go back to the seller and ask for a repair, a credit, or a price reduction, ideally leading with the repair request first.
What you don't want to do is come back with a laundry list of 71 minor items and ask for a massive price cut. That approach rarely lands well.
From there, the seller has three options: agree to fix everything, offer a partial credit or partial fix, or decline entirely (which happens close to half the time, and isn't something to take personally).
If the seller declines and you're not satisfied, you can cancel and get your earnest money back. Staying unemotional through this process matters, because the seller's reasoning for declining a repair is often about their own constraints, not a reflection of how they feel about you as a buyer.
Waiving the appraisal
You can also waive your appraisal contingency, meaning you commit to buying regardless of what the home appraises for.
This can strengthen an offer, but it comes with real risk. If the home doesn't appraise and your lender requires more money down as a result, you may not get your earnest money back, depending on the specifics.
If you're considering this route, talk through the risk in detail with your agent first, and make sure you and your agent have run comps so you're confident in the price before you commit.