Making an offer and negotiating on a property

You've found a property you like. Then comes one of the questions many buyers find difficult:

What should I offer?

There isn't one formula that produces the right number.

Start with information, not emotion

Consider recent comparable sales, the property's condition and features, current market conditions, apparent buyer interest and any information you've gathered during your assessment.

Most importantly, understand what the property is worth to you.

Know your position

Before negotiating, decide what you're comfortable paying and what would cause you to walk away.

Having that position established before negotiations become emotional can make the process considerably clearer.

Price isn't the only consideration

The terms attached to an offer can also matter.

Depending on the transaction, matters such as finance, inspections, deposit and settlement timing may form part of an offer and the resulting contract.

Because offers and contracts can have legal consequences, obtain advice from your conveyancer or solicitor about your individual circumstances before entering into a binding commitment.

Negotiation doesn't need to be adversarial

Good negotiation isn't necessarily about trying to "win".

It's about understanding the available information, knowing your position, communicating clearly and making decisions without unnecessary pressure.

For general Australian guidance, Moneysmart recommends remaining clear-headed during negotiations, sticking to your budget and having a solicitor or conveyancer review the contract before signing. Useful resource: Moneysmart — Buying a house.