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.

I’d put 3 numbers on paper before calling the agent: your opening offer, the price you’d be happy to pay and your limit. Then ask what matters to the seller. If their problem is the settlement date, another $5,000 may solve nothing.

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.

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

Choose recent sales of homes that a buyer would realistically compare with this one. Look at the land, layout, condition and street. An asking price helps explain the seller’s expectations; a completed sale shows what someone paid.

Keep the strongest 3 to 5 comparisons and a short note on the important differences. Our property valuation guide walks through that research, and the property market research guide covers the wider suburb checks.

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.

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.

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'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. Let them finish before deciding how you’ll respond.

Repeat the part of the answer you need explained, then ask for detail. If the agent says the seller needs flexibility, ask which settlement date would suit. You’ll get more useful information than asking how low they’ll go.

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.

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.

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.

Our pre-approval guide explains what the lender checks before you find a property and what still needs to happen afterwards.

If the seller wants a prompt decision, 7 days for finance may be more appealing than 14 or 21. Before offering it, send us the property and proposed dates. We’ll check the remaining application work and the lender’s current timing, alongside the loan’s rate and costs.

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.

Plan around the original deadline. If you need more time, speak to your solicitor before it passes so they can check your options and ask for an extension.

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 added $1,000 to her original offer and offered 7 days for finance with a 25 day settlement. She beat a higher cash offer that wanted 75 days because the seller needed to move sooner. Read Katie’s Albion purchase story.

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.

I’d check what changed before replying: the price, the terms or both. You can hold your offer, increase within your limit, suggest a useful settlement date or leave the negotiation.

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.

Send the price and terms together so there’s no confusion about what you’re offering. Include the buyer names, property, deposit amount and due date, finance and inspection conditions, settlement and agreed inclusions.

Use our written offer template to organise those details. Ask the agent whether they need an email, a form or a proposed contract, and have your solicitor check anything you’re asked to sign.

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.

If the seller asks you to remove a finance condition or waive cooling off, speak to your broker and solicitor before agreeing. Those protections work differently, and the rules depend on the state and contract. Our making an offer guide covers the contract steps.

Arrange the inspections the property needs within the time allowed. If a report finds a problem, ask what work is needed and get a realistic cost before changing your offer.

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.

Auction purchases need preparation before bidding. The contract is generally unconditional, and cooling off can also be excluded for some purchases connected with an auction. Have the contract, finance and property checks done before relying on an auction-related offer.

Before auction day, ask whether the seller will consider an early offer and whether they want unconditional terms. If the property passes in, ask who the agent will negotiate with next. Keep your price limit in place in either conversation; the reserve doesn’t change what you can 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.

Send the complete signed contract to your solicitor and broker promptly. Our signed contract guide helps you track the deposit, finance, inspection and settlement deadlines.

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.