For most of the past decade, buyers had little room to negotiate. That has changed. Home values have fallen for six straight months, auction clearance rates are well below last year, and sellers are increasingly having to meet the market. If you’re buying, this is the time negotiating skills pay off. Here’s the plain-language guide.
Know What It’s Actually Worth
Your strongest tool is evidence. Before you make an offer, look at recent sales of similar homes nearby, ideally from the past three months, since anything older may reflect higher prices. Note how long the property has been on the market and whether its price has already been cut.
In a falling market, the asking price often reflects what the seller hoped for months ago. Recent comparable sales tell you what buyers are actually paying now.
Find Out Why They’re Selling
Ask the agent politely why the owners are selling and how quickly they want to settle. Agents won’t always say, but you’ll often learn something useful. A seller who has already bought elsewhere, is relocating for work or is managing an estate is usually more motivated to agree a sensible price.
Make Your Offer Strong in Other Ways
Price isn’t the only thing sellers care about. A clean offer with finance already approved, flexible settlement timing that suits the seller, and a reasonable deposit can make a lower price more attractive. Sellers worried about deals falling through will often accept less for certainty.
Put It in Writing and Justify It
A written offer is taken more seriously than a verbal one. If you’re offering below the asking price, briefly explain why, referring to recent comparable sales. It keeps the conversation about the market rather than about you.
Leave yourself room to move, but decide your genuine walk-away price before you start and stick to it.
Use Passed-In Auctions
In the current market, many auctions don’t sell under the hammer. When a property passes in, the highest bidder usually gets the first chance to negotiate with the seller, often well below the reserve, and sometimes with the ability to add conditions like finance or building inspection approval. Our guide to what happens when a property is passed in explains how it works.
Don’t Skip the Checks
A good price on the wrong home is still a bad deal. Get a building and pest inspection, have a solicitor or conveyancer review the contract, and make sure your finance is approved at current rates. With four rate rises this year, borrowing power has fallen, so a pre-approval from earlier in the year may no longer be valid.
The Bottom Line
A falling market gives buyers real negotiating power. Base your offer on recent comparable sales, find out what motivates the seller, strengthen your offer with approved finance and flexible terms, put it in writing with a reason, and know your walk-away price. Use passed-in auctions as an opportunity, but never skip inspections and contract checks. This is general information, not financial or legal advice.
Epik Wire covers the property market in plain language for buyers, sellers and owners. Subscribe to our newsletter to stay informed.
