How to negotiate the house price with a real estate agent

The agent has asked what you'd offer. You like the home, but you want a price you can explain and repayments you can live with.

Start with the closest recent sales, then write down your opening offer and the most you're prepared to pay. After that, find out which terms matter to the seller. A settlement date that suits their move can help your offer, provided your lender and solicitor can meet it.

We'll work through the questions to ask, what to put in writing and how to respond when the agent comes back. Keep your price limit and the contract conditions you need clear throughout the conversation.

Good preparation gives you a basis for each decision. You can use the sequence below whether the property has an asking price, a price range or no advertised figure.

Our making an offer guide includes an email template and the contract steps. This guide focuses on the conversations and decisions around the price.

You're trying to reach an agreement on both the price and the terms. The seller may care about certainty, the settlement date or time to move as well as the amount offered.

The agent represents the seller. They can provide information and present your offer, but your own broker and solicitor should help you assess the finance and contract consequences.

Ask a clear question, then give the agent time to answer. If they say the seller needs flexibility, ask what flexibility would help. That may reveal a preferred settlement date or an inclusion that matters.

Negotiation author Chris Voss describes techniques such as mirroring and open questions. In a property conversation, the useful habit is to confirm what you've heard and ask for detail. You don't need to turn the call into a performance.

For example, ask how the seller will choose between offers, what happens after the deadline and which terms matter most. Record the answer so you can check it against the written contract later.

You don't need a script for the whole call. Pick up the part of the answer that affects your offer and ask for the detail. For example, a seller needing more time could mean 2 extra weeks to move, or an uncertain wait until they find another home. Those are different commitments for you.

Write down the answer and confirm any term you rely on in the offer. If the timing won't work for your loan or move, say so and ask whether another date would suit.

Be clear about what you're offering and the evidence behind it. Explain the features or repairs that influenced the price without criticising the seller's home for the sake of getting a reaction.

You can be firm about your limit while remaining easy to deal with. Respond when you say you will and keep the documents consistent. The seller needs to understand whether the offer can proceed.

Work out the total purchase budget, including the loan, available savings and buying costs. A lender's borrowing figure is only part of that calculation.

Check what the repayments would be at the price you're considering. Allow for rates, insurance, maintenance and any body corporate costs after purchase. Keep money available for moving and unexpected expenses.

The gap between your opening price and maximum gives you room to negotiate where the sale process permits it. Your maximum should already reflect the cash and repayment position, so an agent's counteroffer doesn't automatically move it.

For a couple buying together, agree on the limit before the call. Decide who will speak to the agent and how you'll handle an offer that needs discussion. That avoids making a rushed decision while one person is at work.

Use our borrowing calculator and buying costs guide to prepare the figures, then have your broker check the likely loan options.

Ask your broker what the lender has assessed and what remains outstanding. Some initial borrowing figures involve fewer checks than others, and the property itself may still need to be assessed.

Before offering a short finance period, confirm whether the lender needs a valuation, current payslips or statements, or further information about the property. Check the pre-approval's expiry and any conditions attached.

Take the answers to your solicitor when reviewing the offer. Our pre-approval guide explains the differences between an initial estimate and an application that has been assessed in more detail.

Keep your employment, credit commitments and purchase funds stable while the application proceeds. If something needs to change, tell the broker before relying on the previous approval figure.

Use completed sales to build a price range. An advertised price tells you what the seller is asking; a sold result tells you what a buyer agreed to pay.

Open the sold section on realestate.com.au or Domain. Start with similar properties nearby and check the sale date, land, accommodation, condition and location.

Keep the links and notes for your strongest comparisons. If a price is withheld, ask the agent whether it can be disclosed or check for later recorded data. Avoid filling the gap with the asking price.

A renovated home on a quiet street may be a weak comparison for a home needing major work beside a busy road. For units, compare the building, internal area, floor, parking, aspect and ongoing levies.

Price per square metre can be useful when the properties are closely comparable, but it can mislead when one has more usable land, a different building or a better position. Don’t let one ratio replace an explanation of the differences.

Our property valuation guide walks through the comparison process. The property research guide covers checks beyond price, including the surrounding area.

Choose 2 or 3 strong sales and briefly explain why they are relevant. If the home needs work, support the allowance with an inspection or realistic quote rather than an arbitrary discount.

You don't need to send the agent every property you've researched. A clear explanation is easier to assess than a long list of unrelated sales.

Look at how comparable homes are selling now. Visit open homes, follow listings through to sale and ask agents about the process. A broad national headline may tell you little about the particular property type and suburb.

Market reports can add context. Use them alongside local evidence and note the date. A regional market cycle or suburb median doesn’t set the value of an individual home.

Herron Todd White's Month in Review is one resource you can use. Read the commentary for your area, then compare the broad market picture with 3 to 5 recent local sales. A property clock is useful context; it won't tell you whether this particular seller has priced the home well.

Vendor discounting compares an asking price with the eventual sale price. If a home was listed at $500k and sold for $450k, the $50k difference is 10% of the original asking price.

That result doesn’t mean a 10% reduction is appropriate for the next property. Some homes start above a reasonable range; others are priced to attract competing buyers. Build your offer from the sales evidence first.

Avoid assuming a home has a problem just because it has been listed for a while. Ask whether an earlier contract fell over and investigate the reason. Equally, strong competition doesn’t make an unaffordable price workable.

You can research enough to make an informed decision without knowing where prices will go next. If the home meets your needs, the evidence supports the price and the repayments work, decide on that basis.

If the numbers don't work, keep looking or change the brief. Buying quickly is not an outcome worth pursuing at any cost.

Keep criticism specific to the evidence. You can point to a repair or a more relevant sale without accusing the seller or agent of wasting your time.

If a call becomes pressured, ask for the counteroffer in writing and take time to review it. Check the stated deadline so you know how long you have to respond.

Tell the agent enough to understand your offer and proposed terms. Keep your maximum budget private. You can explain what you're looking for and why a property does or doesn't suit without sharing every dollar of borrowing capacity.

Ask about the move and timing rather than making assumptions about the seller's personal circumstances. A seller who has already bought may want a different date from someone still searching.

Use the answer to shape a practical proposal. If the seller needs extra time, ask your broker and solicitor whether a later settlement would work. If they want an earlier move, confirm the lender can complete in that period before offering it.

The agent may not disclose another buyer's price or terms. Ask about the process you need to follow and the information you can verify. Your decision still needs to fit your own limit.

Arrange the inspections and searches the property needs. Depending on the sale process, you may do some before signing or include conditions that provide time to complete them.

Check building condition, drainage, access, noise and the expensive parts of the home. For a unit, investigate body corporate records, levies and planned works. For a tenanted property, check the lease and when you could take possession.

Our FloodWise report guide explains Brisbane flood research. Your solicitor can advise on title, easements, approvals and disclosure documents relevant to the purchase.

A building and pest report can reveal work that changes what you're willing to pay. Ask the inspector what is structural, safety-related or ordinary maintenance, and whether a specialist needs to investigate further.

A downpipe, drainage problem or damaged railing can have different consequences depending on its condition and the work required. Avoid treating a report's list of issues as an automatic discount calculation.

Jayden paid for inspections on several homes before finding the right one. Those checks identified problems he would not have found at an open home, including water and termite damage. Keep room in the buying budget for the checks that let you make that decision.

Get realistic repair information and discuss the contract with your solicitor. You may seek an agreed price change or repair, or need advice about whether to proceed. The seller doesn’t have to accept a request simply because a report lists defects.

Our guide to renegotiating after an inspection covers how to document the findings and any agreement. Keep the relevant deadline in view while obtaining quotes.

In an ordinary negotiation, you may be able to start with an informal discussion about price and terms. Ask how the seller wants offers submitted before assuming an email is enough.

Make the opening figure credible. Explain the sales or condition that informed it and ask whether the proposed timing would help. A deliberately unrealistic figure may end the conversation before the useful terms are discussed.

There is no standard percentage for a low opening offer. If the sale is best and final, an exploratory offer may simply be treated as your final number. Confirm whether you’ll have another chance to respond.

Keep written records of any price or terms discussed. If the agent sends a contract to sign, have it reviewed before signing even if you've already agreed an outline by phone.

Before adding more to your price, find out whether a quicker finance decision or a different settlement date would help the seller. If your application is ready, those terms can give you another way to compete. Have your broker confirm the timing and your solicitor review the conditions before putting them in the offer.

If the seller wants a prompt decision, offering 7 days for finance instead of 14 or 21 can make your offer more appealing while keeping a finance condition.

The work starts before you make the offer: send us the property and proposed dates so we can check the application, valuation and lender timing.

A lender that can assess your application promptly may give you more room to negotiate the finance date. We'll compare that with the loan's rate, costs and suitability, then tell you which dates we can recommend.

For an inspection condition, check when the inspector can attend and when the report will arrive. You also need time to ask questions and investigate significant findings.

Avoid assuming the seller will grant an extension later. The original deadline remains important until an extension is agreed or another contractual mechanism applies.

A seller who has already bought elsewhere may value an earlier settlement. Ask which date would help, then confirm the loan documents, your cash contribution and the legal work can be ready for it. If the seller needs more time to move, a later date may suit them better.

Katie was buying in Albion, Brisbane, and competing with an investor who had offered more money and could pay cash. The investor wanted a 75 day settlement. The seller had already bought another home and wanted to move sooner.

We helped Katie offer a 7 day finance clause and 25 day settlement, with another $1k on her original price. Her offer was still below the investor's, but the seller chose her because the timing suited their move.

Before increasing your price, ask which dates would help the seller. Then we'll work through whether your loan can meet them.

Finance approval and settlement are 2 separate dates. After approval, the loan documents still need to be signed and accepted, and the lender and solicitors need to be ready to settle. Read our signed contract guide for the steps between approval and getting the keys.

If you consider letting the seller stay after settlement, involve your solicitor, lender and insurer. The agreement needs to address occupation, payments, damage, bond where applicable and the date possession will be available. An owner occupier scheme or grant may also have occupancy requirements.

An unconditional offer carries different risks from an offer with finance or inspection protection. Removing a finance condition and waiving statutory cooling off are separate decisions. The effect depends on the state and contract.

In NSW, a section 66W certificate can waive cooling off when the legal requirements are met. In other states, different rules apply. Have your legal adviser explain the actual document before signing.

The NSW contracts guidance and our making an offer guide provide starting points. Your solicitor should advise on the protection needed for your purchase.

The Victorian section 32 guidance explains the seller's disclosure statement. Have your legal adviser review it alongside the contract before you sign.

Include the price and all the terms together. Check the buyer names and property details carefully so the agent and solicitor are working from the same proposal.

Our written offer template helps you organise the information. Ask the agent whether they need an email, a form or a signed proposed contract.

Ask for the submission deadline, whether the seller can accept earlier and whether this is the final round. You may not be able to see or match the other offers.

Choose a price within the limit you've already set and the terms you can meet. A best and final request doesn’t require you to offer every dollar a bank might lend.

If the process changes, ask the agent to explain it clearly. Keep a record of revised deadlines or requests and speak to your solicitor if you have concerns about the conduct or documentation.

An expiry can make the response period clear, but it doesn’t guarantee the seller will stop considering other buyers. It may also mean your offer lapses before the seller is ready to decide.

Have your solicitor advise on whether to include one and how it should be written. Choose a period that allows the seller to consider the offer and that you’re prepared to honour. Be ready to act if it is accepted in time.

Once the contract is accepted, use our signed contract guide to track the deposit, insurance, finance and inspection dates.

Plan your next move before sending the opening offer. When a response comes back, check whether the seller changed the price, terms or both.

Suppose you offer $750k and your limit is $780k. The seller counters at $790k. That tells you their expectations; your budget still needs to work at any price you choose.

Go back to the sales evidence and any new information. You can hold the offer, increase it within your limit, propose a useful term or decide to move on. Splitting the difference is only one possible response.

Set each revised offer from the evidence and your budget. The example gives you several ways to respond, depending on what the seller wants. If the agent asks for a final offer, decide what you're comfortable paying before submitting it.

If you decide to increase, explain the revised complete offer. Check the cash contribution and repayments, and keep enough available for the buying costs and immediate repairs.

A smaller final increase may fit the budget, but its size alone doesn't make it sensible. Ask whether the property still represents a purchase you're comfortable with at the new price.

Allow time to think before replying to a pressured call. You can ask when a response is required and come back with a clear decision. Keep communication reliable rather than using silence to create confusion.

Auction purchases need different preparation. The contract is generally unconditional, and cooling off may also be excluded for some purchases connected with the auction. Have the contract, finance and property checks completed before bidding or making an auction-related offer.

Ask whether the seller will consider an early offer and what process applies. A seller may prefer to continue the campaign even when an offer is strong.

Base your price on the evidence and your limit. If the seller asks for unconditional terms, have your solicitor and broker explain the risk before agreeing. An early offer doesn’t guarantee you’ll avoid competition.

Ask the agent what happens next and whether they will negotiate with you. The highest bidder's position depends on the state and sale process; don’t assume an exclusive national right to buy.

Keep your price limit in place. If the reserve is above it, the private conversation after the auction still needs to fit your budget.

If you're the only active bidder, take time to understand what the auctioneer is asking for. You don’t need to keep increasing merely to reach a reserve you can't afford.

Our buying at auction guide covers preparation, bidding and what to ask if the property passes in.

If the price or conditions exceed what works for you, say so clearly. Time already spent on inspections and research doesn't make the next increase affordable.

Write down why you decided to stop. It may be the price, a repair risk, the contract terms or the repayments. That helps you refine the next search rather than repeat a negotiation that can’t work.

If you miss out, ask the agent for any useful feedback they can provide. Keep the finance documents current and revisit your property brief. You may need a different area, property type or timeframe to fit the budget.

Jane was buying in Queensland with a pre-approval. During negotiations, the agent repeatedly asked her to increase the offer. She also shortened her finance and inspection periods from 14 days to 7 days.

Jane began to feel pressured and questioned the process. If you're in that position, pause before adding to the price or shortening another deadline. Check that the revised offer still works for you.

Ask for the process and latest terms in writing. Confirm the remaining lender and inspection work before shortening dates. If you're concerned about conduct, ask your solicitor what the rules require and which next step is available.

Keep the conversation focused on the price evidence and the terms you can meet.

Send the complete signed contract to your solicitor and broker promptly. Record the deposit, finance, inspection and settlement deadlines and confirm the insurance start date.

In Queensland, responsibility for the property usually passes to the buyer at 5pm on the next business day after the contract date. Check your own contract and arrange the required cover. Queensland insurance guidance explains the general position.

For a unit, check what the body corporate insures and what you need separately. Keep any agreed price changes or repairs documented and give revised contracts to the broker if they affect the loan.