The art of successfully negotiating a property purchase price

Image of a Galley style kitchen with timber cupboards looking out towards a glass sliding door into the garden

Negotiating the purchase price of a property can be a delicate process that requires preparation, strategy, and effective communication. Whether you're a first-time homebuyer or a seasoned investor, these steps can help you navigate the negotiation process and potentially secure a better deal.

1. Research the Market:

  • Understand the current real estate market conditions in the area.
  • Research recent sales of comparable properties to determine a fair market value.
  • Consider the property's location, condition, and any unique features that may affect its value.

2. Set a Budget:

  • Determine the maximum amount you're willing to pay for the property.
  • Factor in additional costs like government charges, repairs, and potential renovations.

3. Get Pre-Approved for a Mortgage:

  • Have a good chat with us to set your borrowing power. we’ll let you know if we think pre-approval is worth getting: a pre-approval or a word from us can help strengthen your negotiating position

4. Identify Seller's Motivation:

  • Understand why the seller is selling, as it can influence their willingness to negotiate.
  • For example, a motivated seller may be more open to a lower offer.

5. Build a Strong Relationship with the Seller:

  • Establish open communication with the seller or their agent.
  • Be respectful and professional throughout the negotiation process – they’ll be more agreeable if they like you!

6. Start with a Reasonable Offer:

  • Make an initial offer that is based on your research and the property's market value.
  • Avoid lowball offers that may offend the seller.

7. Justify Your Offer:

  • Clearly communicate the reasoning behind your offer.
  • Highlight any necessary repairs or improvements that may affect the property's value.

8. Be Prepared to Compromise:

  • Understand that negotiation is a give-and-take process.
  • Identify areas where you can compromise without sacrificing your priorities.

9. Negotiate More Than Just the Price:

  • Consider negotiating other terms, such as closing date, inclusion of appliances, or potential repairs.
  • This allows for a more flexible negotiation process.

10. Use a Buyer’s Agent:

  • A skilled agent can provide valuable insights and negotiate on your behalf.
  • They have experience in handling negotiations and can navigate complex situations.

11. Stay Emotionally Detached:

  • Keep emotions in check to make rational decisions.
  • If a negotiation becomes challenging, take a step back and reassess your priorities.

12. Be Patient:

  • Negotiations may take time, especially if there are multiple counteroffers.
  • Stay patient and be prepared for a back-and-forth process.

13. Review the Contract Carefully:

  • Once an agreement is reached, thoroughly review the contract with your licensed conveyancer
  • Ensure all terms and conditions are clearly outlined and meet your expectations.

14. Have a Backup Plan:

  • Be prepared to walk away if the negotiations are not progressing in your favour.
  • Having alternatives in mind can reduce the pressure on closing a deal at any cost.

Remember that successful negotiation requires effective communication, understanding the market, and being flexible. By following these steps, you can increase your chances of securing a property at a reasonable and fair price.

As Mortgage Brokers in the Coffs Harbour region for over 10 years, we know how.

Get in touch with us today.


We are based on the beautiful Coffs Harbour coast and we offer a complimentary home loan broking service.

Make an appointment today for an obligation-free chat, to talk about what you need and how we can help.

Click here to get in touch.