Negotiation &
Making an Offer
Negotiation &
Making an Offer
Finding the right property is only part of the buying journey. How you negotiate and present your offer can have a major impact on whether you secure the property — and how much you ultimately pay.
Before making an offer, understand the property's likely market value, decide your absolute maximum price and know the conditions that matter to you.
Whether you are negotiating a private treaty sale, considering a pre-auction offer or bidding at auction, the same principle applies: Know your numbers, stay calm and never let competition push you beyond what you can comfortably afford.
Start With Your Walk-Away Price
Before negotiations begin, decide the maximum amount you are prepared to pay.
This is your walk-away price.
It should be based on:
• your borrowing capacity
• your available deposit
• expected repayments
• comparable property sales
• the property's condition and features
• how strongly the property suits your needs
Setting this limit before negotiations begin helps protect you from making an emotional decision later.
It is easy to become caught between two fears:
“What if I overpay?”
and
“What if I lose the property for only a little more?”
Your maximum price gives you a clear boundary when those emotions appear.
Understand What the Property Is Worth
Your offer should start with research rather than the seller's asking price.
Look at recent comparable sales of similar properties in the area and consider factors such as:
• location
• land size
• property type
• condition
• layout
• renovations
• unique features
• current market demand
This gives you a more realistic estimate of fair market value.
Some properties may justify paying a little more.
For example, if the property is particularly desirable, difficult to replace or rarely available in that area, you may decide it is worth stretching closer to your maximum.
If similar properties appear regularly, there may be less reason to push your budget.
The important point is that your maximum offer should come from research and financial planning — not pressure.
Price Is Not the Only Part of an Offer
A strong property offer is not always simply the highest number.
The terms of your offer can also matter to the seller.
Depending on their circumstances, they may value:
• a shorter settlement period
• a longer settlement period
• fewer conditions
• certainty around finance
• flexibility around the move-out date
• a temporary leaseback arrangement
For example, a seller who needs extra time before moving into their next home may prefer an offer with a longer settlement period.
That means a slightly lower offer with attractive terms may sometimes compete successfully with a higher but less convenient offer.
Ask the selling agent whether there are particular terms that matter to the vendor.
How to Make an Offer on a Property
Once you have decided what you are willing to pay, tell the agent you are ready to make an offer and ask what process they require.
The process can differ between agencies and Australian states and territories.
An agent may require:
• a written offer
• a signed contract
• specific conditions to be included
• evidence of finance or deposit readiness
Be careful about relying solely on informal verbal discussions.
If you are serious about purchasing, make sure you understand when your offer becomes legally binding and have your solicitor or conveyancer review the relevant documents.
Negotiating a Private Treaty Sale
Private treaty sales generally allow more room for negotiation than auctions.
Once your first offer is submitted, there may be some back-and-forth between you, the agent and the seller.
Start Strategically
Your opening offer does not necessarily need to be your maximum price.
You may choose to begin below your walk-away price while still making an offer that is credible enough for the seller to engage with.
An extremely low offer may simply be rejected.
The aim is to create room for negotiation without losing credibility.
Ask for a Counteroffer
If your first offer is rejected, you can ask the agent what price or terms the seller would consider.
This can help you understand how far apart you are.
You can then decide whether continuing the negotiation makes sense.
Do not automatically increase your offer simply because it was rejected.
Return to your research and maximum price first.
Finding the right property is only part of the buying journey. How you negotiate and present your offer can have a major impact on whether you secure the property — and how much you ultimately pay.
Before making an offer, understand the property's likely market value, decide your absolute maximum price and know the conditions that matter to you.
Whether you are negotiating a private treaty sale, considering a pre-auction offer or bidding at auction, the same principle applies: Know your numbers, stay calm and never let competition push you beyond what you can comfortably afford.
Start With Your Walk-Away Price
Before negotiations begin, decide the maximum amount you are prepared to pay.
This is your walk-away price.
It should be based on:
• your borrowing capacity
• your available deposit
• expected repayments
• comparable property sales
• the property's condition and features
• how strongly the property suits your needs
Setting this limit before negotiations begin helps protect you from making an emotional decision later.
It is easy to become caught between two fears:
“What if I overpay?”
and
“What if I lose the property for only a little more?”
Your maximum price gives you a clear boundary when those emotions appear.
Understand What the Property Is Worth
Your offer should start with research rather than the seller's asking price.
Look at recent comparable sales of similar properties in the area and consider factors such as:
• location
• land size
• property type
• condition
• layout
• renovations
• unique features
• current market demand
This gives you a more realistic estimate of fair market value.
Some properties may justify paying a little more.
For example, if the property is particularly desirable, difficult to replace or rarely available in that area, you may decide it is worth stretching closer to your maximum.
If similar properties appear regularly, there may be less reason to push your budget.
The important point is that your maximum offer should come from research and financial planning — not pressure.
Price Is Not the Only Part of an Offer
A strong property offer is not always simply the highest number.
The terms of your offer can also matter to the seller.
Depending on their circumstances, they may value:
• a shorter settlement period
• a longer settlement period
• fewer conditions
• certainty around finance
• flexibility around the move-out date
• a temporary leaseback arrangement
For example, a seller who needs extra time before moving into their next home may prefer an offer with a longer settlement period.
That means a slightly lower offer with attractive terms may sometimes compete successfully with a higher but less convenient offer.
Ask the selling agent whether there are particular terms that matter to the vendor.
How to Make an Offer on a Property
Once you have decided what you are willing to pay, tell the agent you are ready to make an offer and ask what process they require.
The process can differ between agencies and Australian states and territories.
An agent may require:
• a written offer
• a signed contract
• specific conditions to be included
• evidence of finance or deposit readiness
Be careful about relying solely on informal verbal discussions.
If you are serious about purchasing, make sure you understand when your offer becomes legally binding and have your solicitor or conveyancer review the relevant documents.
Negotiating a Private Treaty Sale
Private treaty sales generally allow more room for negotiation than auctions.
Once your first offer is submitted, there may be some back-and-forth between you, the agent and the seller.
Start Strategically
Your opening offer does not necessarily need to be your maximum price.
You may choose to begin below your walk-away price while still making an offer that is credible enough for the seller to engage with.
An extremely low offer may simply be rejected.
The aim is to create room for negotiation without losing credibility.
Ask for a Counteroffer
If your first offer is rejected, you can ask the agent what price or terms the seller would consider.
This can help you understand how far apart you are.
You can then decide whether continuing the negotiation makes sense.
Do not automatically increase your offer simply because it was rejected.
Return to your research and maximum price first.
Strengthen Your Offer With Better Terms
Instead of increasing the price immediately, consider whether other terms could make your offer more appealing.
This could include:
• settlement timing
• deposit arrangements
• fewer conditions
• flexibility around possession
Any changes to contract conditions should be discussed with your solicitor or conveyancer before you agree to them.
Know When to Use Your Best and Final Offer
Sometimes buyers may be asked to submit their best and final offer, particularly when several people are interested in the same property.
At this point, determine your “no-regrets” price.
Ask yourself:
If another buyer secured this property for slightly more than my offer, would I genuinely wish I had paid more?
Your answer can help you decide your final figure.
But your no-regrets price should still sit within your financial limit.
Never allow fear of missing out to turn into financial stress later.
Do Not Let Pressure Replace Research
Agents represent the seller and may use urgency to encourage buyers to act.
You may hear that:
• several buyers are interested
• another offer has been submitted
• the seller wants an answer quickly
• you may lose the property if you wait
There may genuinely be competition.
But your response should still be based on your own research and budget.
Remain calm.
If negotiations move beyond your maximum price, be prepared to walk away.
Another property will come along.
When Does an Accepted Offer Become Binding?
Having your offer verbally accepted does not necessarily mean the property is officially yours.
The point at which a property transaction becomes legally binding can depend on the contract, method of sale and state or territory.
This is why your solicitor or conveyancer should be involved before you commit.
They can explain:
• when the contract becomes binding
• cooling-off rights
• deposit requirements
• contract conditions
• any state-specific rules
Move promptly once your offer is accepted, because until the relevant contracts are completed, another buyer may sometimes still secure the property.
This situation is commonly referred to as gazumping.
Strengthen Your Offer With Better Terms
Instead of increasing the price immediately, consider whether other terms could make your offer more appealing.
This could include:
• settlement timing
• deposit arrangements
• fewer conditions
• flexibility around possession
Any changes to contract conditions should be discussed with your solicitor or conveyancer before you agree to them.
Know When to Use Your Best and Final Offer
Sometimes buyers may be asked to submit their best and final offer, particularly when several people are interested in the same property.
At this point, determine your “no-regrets” price.
Ask yourself:
If another buyer secured this property for slightly more than my offer, would I genuinely wish I had paid more?
Your answer can help you decide your final figure.
But your no-regrets price should still sit within your financial limit.
Never allow fear of missing out to turn into financial stress later.
Do Not Let Pressure Replace Research
Agents represent the seller and may use urgency to encourage buyers to act.
You may hear that:
• several buyers are interested
• another offer has been submitted
• the seller wants an answer quickly
• you may lose the property if you wait
There may genuinely be competition.
But your response should still be based on your own research and budget.
Remain calm.
If negotiations move beyond your maximum price, be prepared to walk away.
Another property will come along.
When Does an Accepted Offer Become Binding?
Having your offer verbally accepted does not necessarily mean the property is officially yours.
The point at which a property transaction becomes legally binding can depend on the contract, method of sale and state or territory.
This is why your solicitor or conveyancer should be involved before you commit.
They can explain:
• when the contract becomes binding
• cooling-off rights
• deposit requirements
• contract conditions
• any state-specific rules
Move promptly once your offer is accepted, because until the relevant contracts are completed, another buyer may sometimes still secure the property.
This situation is commonly referred to as gazumping.
Negotiating Before
an Auction
A property advertised for auction may sometimes be purchased before auction day.
This is known as making a pre-auction offer.
Some buyers make early offers because they are worried about competing at auction.
But fear of missing out can also lead buyers to offer more than necessary.
Before making a pre-auction offer, ask the agent questions such as:
• Is the seller considering offers before auction?
• Has another offer already been made?
• What would the seller need to consider selling before auction?
• Is there a deadline for offers?
Try to understand whether there is genuine competition rather than assuming there is.
When Might a Pre-Auction Offer Make Sense?
If buyer interest is strong and the property is particularly important to you, you may decide that making a strong offer before auction is worthwhile.
If interest appears limited, waiting for the auction may give you more information about actual demand.
Either way, your decision should be based on:
market value + competition + your personal walk-away price
—not FOMO.
Prepare Properly Before an Auction
Buying at auction requires more preparation because the successful bidder is generally committed immediately.
Before auction day:
• confirm the property is right for you
• speak with your mortgage broker
• complete your property research
• obtain legal advice
• have the contract reviewed
• complete any building and pest inspections
• understand the auction conditions
• confirm the required deposit
• establish your absolute maximum bid
• make sure anyone bidding on your behalf knows that limit
If you want to request different terms, such as a different deposit amount or settlement period, arrange this with the agent and your legal adviser before the auction.
How Should You Bid at an Auction?
There is no single bidding strategy that works in every auction.
Your approach may depend on the level of competition.
When Competition Is Strong
A confident opening bid may sometimes signal that you are a serious buyer.
But confidence does not mean ignoring your budget.
When Competition Is Low
There may be little reason to rush.
If bidding is slow, remain patient and avoid increasing your own bid unnecessarily.
The most important strategy is the simplest:
know your limit and do not cross it.
What Happens if the Property Passes In?
If bidding does not reach the reserve price, the property may be passed in.
That does not necessarily mean your opportunity is over.
The seller may begin negotiating with interested buyers after the auction.
Depending on the circumstances and local rules, you may still be able to negotiate the price and terms.
If the property later transitions back to a private treaty sale, different contract and cooling-off rules may apply.
Always confirm the applicable process with your solicitor or conveyancer.
Negotiating Before
an Auction
A property advertised for auction may sometimes be purchased before auction day.
This is known as making a pre-auction offer.
Some buyers make early offers because they are worried about competing at auction.
But fear of missing out can also lead buyers to offer more than necessary.
Before making a pre-auction offer, ask the agent questions such as:
• Is the seller considering offers before auction?
• Has another offer already been made?
• What would the seller need to consider selling before auction?
• Is there a deadline for offers?
Try to understand whether there is genuine competition rather than assuming there is.
When Might a Pre-Auction Offer Make Sense?
If buyer interest is strong and the property is particularly important to you, you may decide that making a strong offer before auction is worthwhile.
If interest appears limited, waiting for the auction may give you more information about actual demand.
Either way, your decision should be based on:
market value + competition + your personal walk-away price
—not FOMO.
Prepare Properly Before an Auction
Buying at auction requires more preparation because the successful bidder is generally committed immediately.
Before auction day:
• confirm the property is right for you
• speak with your mortgage broker
• complete your property research
• obtain legal advice
• have the contract reviewed
• complete any building and pest inspections
• understand the auction conditions
• confirm the required deposit
• establish your absolute maximum bid
• make sure anyone bidding on your behalf knows that limit
If you want to request different terms, such as a different deposit amount or settlement period, arrange this with the agent and your legal adviser before the auction.
How Should You Bid at an Auction?
There is no single bidding strategy that works in every auction.
Your approach may depend on the level of competition.
When Competition Is Strong
A confident opening bid may sometimes signal that you are a serious buyer.
But confidence does not mean ignoring your budget.
When Competition Is Low
There may be little reason to rush.
If bidding is slow, remain patient and avoid increasing your own bid unnecessarily.
The most important strategy is the simplest:
know your limit and do not cross it.
What Happens if the Property Passes In?
If bidding does not reach the reserve price, the property may be passed in.
That does not necessarily mean your opportunity is over.
The seller may begin negotiating with interested buyers after the auction.
Depending on the circumstances and local rules, you may still be able to negotiate the price and terms.
If the property later transitions back to a private treaty sale, different contract and cooling-off rules may apply.
Always confirm the applicable process with your solicitor or conveyancer.
Feeling Ready to Make
an Offer?
Before you do, take a few minutes to work through our Property Negotiation Checklist.
It’s designed to help first home buyers stay clear-headed, organised and focused on the numbers — especially when negotiations start to feel pressured.
‣ Key Takeaway
Successful property negotiation is less about clever tricks and more about preparation and discipline.
Research the property's market value.
Set your walk-away price before negotiations begin.
Understand that price is only one part of an offer.
Use terms strategically where appropriate, involve your mortgage broker and conveyancer, and stay calm when competition increases.
Most importantly:
Never let the fear of missing out push you beyond what you can comfortably afford.
A property should support your financial future — not put it under unnecessary pressure.
Feeling Ready to Make
an Offer?
Before you do, take a few minutes to work through our Property Negotiation Checklist.
It’s designed to help first home buyers stay clear-headed, organised and focused on the numbers — especially when negotiations start to feel pressured.
‣ Key Takeaway
Successful property negotiation is less about clever tricks and more about preparation and discipline.
Research the property's market value.
Set your walk-away price before negotiations begin.
Understand that price is only one part of an offer.
Use terms strategically where appropriate, involve your mortgage broker and conveyancer, and stay calm when competition increases.
Most importantly:
Never let the fear of missing out push you beyond what you can comfortably afford.
A property should support your financial future — not put it under unnecessary pressure.
Other Resources
Other Resources
NEED HELP WITH YOUR MORTGAGE?
Make Your Next Move
With Confidence
Get expert guidance from WinSquare Finance on your mortgage options, borrowing power, deposits, pre-approvals, and more. Understand your choices and make a decision that works for you.
NEED HELP WITH YOUR MORTGAGE?
Make Your Next Move
With Confidence
Get expert guidance from WinSquare Finance on your mortgage options, borrowing
power, deposits, pre-approvals, and more. Understand your choices and make a
decision that works for you.
