How’s The Market? How I Negotiate A Property Purchase

In This Week’s How’s The Market | Edition 171

• The Art of Property Negotiation

• Inside Three Smart Property Purchases  

• Middle Park’s Timeless Showpiece

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  Negotiating a property isn’t about making the lowest offer or revealing your maximum budget.

  It’s about knowing what the property is worth, why the vendor is selling, who you’re competing against, and what terms matter most.

  And just as importantly, knowing when to walk away.

  Today, I’ll take you through my negotiation process, along with 3 real examples from properties I’ve purchased this year and how I’ve put these strategies into practice.

  How I Negotiate A Property Purchase

  Work Out What It’s Worth Before You Negotiate

  Your budget doesn’t determine the property’s value – comparable sales do. Set your walk-away number, then stick to it.

  VISUAL:
  PROPERTY VALUE: $1.80M – $1.85M
  YOUR BUDGET: $2.00M

  Your walk-away number protects you from overpaying.

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  Find Out Why The Vendor Is Selling

  Before you offer, know the vendor: Why are they selling? Have they bought it? Moving interstate? Investment, deceased estate, divorce, downsizing or upsizing? How quickly do they need to move? Do they need an early deposit release?

  Ask smart, open questions: Instead of “Why are they selling?” ask “How come they want to sell?” and “What’s their ideal settlement?” The vendor’s situation can shape your offer more than the advertised price.

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  Find Out What Terms Matter

  Price isn’t always the deciding factor. A $1.8m unconditional offer with 30-day settlement could beat $1.84m subject to finance within 180 days.

  Know what the vendor actually wants – the strongest offer isn’t always the highest one.

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  Understand Who You’re Competing Against

  “A lot of interest” doesn’t mean there’s another offer. Ask: Have they made an offer, completed due diligence, or actually given the agent a number?

  Know the facts before you negotiate – don’t negotiate against imaginary buyers.

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  Don’t Negotiate Against Yourself

  Don’t bid against yourself. If the agent says “that won’t get it done,” ask questions – don’t instantly add $50k.

  No counter? No written offer? No reason to move? Hold your position, stay calm, and let them come back to you.

  3 Real Examples Of How We Secured Properties

  Purchase #1 – Carrum : We bought an off-market property for $100K less than the one next door – same block, same knockdown-rebuild potential.The key? We understood the vendors’ circumstances and gave them what they needed: a 6-month settlement, early deposit access, and one final Christmas in their family home.

  Purchase #2 – Brighton : Quoted at $1.45–$1.55m, we spotted the opportunity, secured exclusive rights and made a $1.65m unconditional offer despite 50 groups inspecting.Competition pushed it to $1.79m, but we secured it  just days before another buyer offered $1.85m.

  Purchase #3 – Glen Iris : Quoted at $1.3m–$1.4m, we skipped the pre-auction pressure and let the campaign run. At auction, we stayed patient, bid $1.31m and secured it for $1.313m after 45 minutes of negotiation.The result? A $1.4m reserve property secured $87k below reserve – by understanding the vendor’s position and not overplaying our hand.

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  The right negotiation strategy can be worth far more than simply making the highest offer.