Negotiating a lower price for a below market rate (BMR) home

Buyers can negotiate the price for some BMR homes. These listings have a "Price is Negotiable" label.

On DAHLIA, some BMR listings will show that the price is negotiable. The sales price for these homes may seem high. This is the seller’s asking price. It is also referred to as the sales price. This price is usually at or below the maximum resale price for which the seller can sell the property.

Likely, the sellers have lived there a long time and signed their contract under old rules. The resale price calculations were different then, which allows for a higher maximum sales price.

You can negotiate for a price lower than the asking price

After the lottery, we will contact applicants based on their lottery rank. Once contacted, you can either accept the asking price or offer something less if you feel it is too high.

Since this is a negotiation, the seller can either accept your offer or reject it if they feel it is too low.

You must get a buyer’s agent to represent you. You should work with them to decide how much to offer.  They can assist you in negotiating the sales price with the seller.

MOHCD does not allow the seller’s agent or their affiliates to act as the buyer’s agent in the same transaction. This way, you know your buyer's agent is representing your best interests.

You cannot use a BMR DALP loan if you pay more than a certain price

MOHCD has another price point, called the affordable price. The affordable price is what a household earning a certain level of AMI (Area Median Income) can afford.  You can find the affordable price in the Special Notes section at the bottom of the listing.

If you pay more than the affordable price, you will not be able to use a BMR DALP loan to help with your down payment.

Last updated March 24, 2023