Do your research

Look at properties in your price range in the areas you like, and in the surrounding suburbs. It often pays to pick the worst house on the best street! See what’s happening in the local market by talking to real estate agents about properties that have sold and go to some local auctions. Once you’ve found the home you’re interested in, you may want to engage a valuer to determine the market value of the property.

Set a financial limit

It’s important that you set an upper limit and actually stick to it, otherwise you run the risk of tying yourself to debt that you’ll struggle to repay. Don’t allow the emotion of the negotiation get the better of you, but also be careful not to put the owner offside with an insulting offer. If you are making a low offer, make sure to provide information about why you believe the offer is genuine. We recommend pre-approval of finance if you feel like you might waver on the budget!

Go where the sellers are

Look at suburbs where there are lots of properties for sale, as there will be less competition from other buyers – but more competition between vendors to secure a deal. This will give you a stronger negotiation position with a seller who is competing with other homeowners in the area.

Be realistic

Keep in mind that there’s no such thing as the ‘perfect’ home, so you may need to “set priorities”. Determine what you’re willing to sacrifice and what is non-negotiable, especially if you have a limited budget, and go from there.

Learn the vendors reason for selling

Have they already committed elsewhere? Are they financially over-extended and desperate to sell? Or is it an investor who is keen to liquidate their assets? Ask the agent plenty of questions, as this information can be extremely valuable during negotiations. Sometimes a seller will take a lower price if the terms and conditions are more favourable to their own situation.