Why some buyers may have more room to negotiate in today’s property market

Key takeaways:

• Vendor discounting across the capital cities has increased, which may point to softer selling conditions in some parts of the market.

• Homes are taking longer to sell and auction clearance rates have eased, potentially giving some buyers more flexibility when negotiating.

• Market conditions still vary by suburb and property type, with some entry-level homes continuing to attract strong competition.

• Buyers who understand their borrowing power and have pre-approval may be better positioned to act when the right property becomes available.

Some buyers may be finding more opportunity to negotiate in today’s property market as homes take longer to sell and seller expectations begin to shift in some areas.

While competition remains strong for well-priced homes and entry-level properties, agents say conditions are becoming less frantic than earlier in the year, particularly across some mid-to-upper price brackets.

That may give buyers more time to compare properties, negotiate on price or settlement terms, and make more considered decisions.

Recent housing market data from Cotality supports that trend, with vendor discounting across combined capital cities increasing slightly to 3.1%, up from 2.9% in recent months.

Some sellers are becoming more flexible on price

One sign of change is in vendor discounting.

Rising discounting levels can indicate that some sellers are adjusting price expectations to meet current buyer demand.

According to Cotality, discounting has increased as buyers benefit from more listings and a better ability to negotiate on asking prices.

One Agency St Marys real estate agent Daniel Palermo said buyer activity has slowed in recent weeks and open home inspections had become quieter.

He said some properties are still drawing interest, especially in St Marys and other entry-level pockets, but the mid to upper end is softer.

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“Anything in the mid to upper end range, sort of above $1 million, I’m seeing definite adjustments there,” he said.

For buyers, the practical takeaway to consider is that slower market conditions may give some buyers more time to compare properties, negotiate terms and make more considered decisions.

Buyers who already understand their budget and borrowing capacity may feel more confident negotiating, especially when sellers are more flexible on price or settlement terms.

Longer selling times are changing buyer behaviour

Cotality’s data shows the median days on market for homes across Australia has lifted to 27 days over the three months to April 2026, up from the pace earlier in the year.

(Source: Cotality Home Value Index May 2026 & Cotality Monthly Chart Pack May 2026)

That may not sound dramatic, but in property terms it matters. Properties that stay on the market longer may give buyers more opportunity to negotiate on price or settlement terms.

“I had another offer on the same property at $30,000 under the [price] range and they (the vendors) wouldn’t budge,” Palermo said.

He also said more sellers are now moving to private treaty and some are accepting that their homes may no longer fetch the price they expected a few months ago.

You might also be interested in: Buying at auction vs private treaty

For buyers, this changes the decision-making process. Instead of acting fast because everyone else is, buyers may have more time to focus on preparation, comparison and value.

That is where borrowing power comes in. In some cases, a lower purchase price may reduce the amount you need to borrow, depending on your deposit and lending structure.

Stock is still tight, which is keeping parts of the market competitive

Even with softer buyer demand, stock levels are not high enough to create a broad oversupply.

Cotality says total listings are still sitting almost 10% below the five-year average, even though new listings have picked up.

Phil Gallagher of Aussie Belmont said the tight supply has continued to fuel competition.

“What little property there is has a massive amount of competition on it, which drives prices up,” he said.

Palermo said entry-level homes and townhouses are still moving reasonably well, while blocks of land are struggling to attract interest because of building costs and longer construction timelines.

That is important context for buyers. Market conditions can still vary significantly between suburbs, price points and property types.

If you are buying in a tightly held area, you may still face strong competition. If you are buying in a slower segment, you may have more room to negotiate on price or terms. Understanding those differences can help you prepare before making an offer.

What you should do next

In this market, preparation can help.

If you are buying, it can help to understand your borrowing power before you start making offers. It also helps to have pre-approval in place, so you can move when the right property comes up.

If you are upgrading, softer conditions may help on the buying side, even if your sale price has also moderated. That could make timing and loan structure especially important.

Gallagher said buyers may not always be able to compete on price, but can compete on terms.

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For example, negotiating a longer settlement could give you more time to sell your existing property, which could help reduce the need for bridging finance, depending on your circumstances.

“That can make it a better deal overall,” Gallagher said, adding that vendors are often more open to a solid offer with favourable terms in this part of the market.

For buyers, the market is offering a little more breathing room.

The opportunity now is being prepared to make the most of it.

An Aussie Broker can help you understand your borrowing power, compare loan options and prepare for the next step based on your goals and financial situation.