Buying a home is one of the biggest financial moves you'll ever make, and when it comes to negotiating, every dollar saved can make a real difference. Whether you're a first-home buyer looking to stretch your budget further or an experienced investor aiming for a great price, smart negotiation tactics can help you land a deal that’s right for you.
In this guide, we'll walk you through the basics of negotiating a purchase, including:
Why negotiation matters in the home buying process
Understanding market conditions before negotiating
How to strengthen your negotiation position
Key strategies for negotiating a great price
How a buyer's agent or broker can help you negotiate
At Aussie, we're here to advocate for you every step, from securing a competitive home loan to ensuring you purchase wisely. With expert insights and bold strategies, this article will help you negotiate smarter and unlock better value on your home purchase.
Why negotiation matters in the home buying process
When you’re buying a home, every dollar counts. A smart negotiation strategy can help you land a better deal, saving you money upfront and over the life of your loan. But negotiating isn’t just about price; it’s about getting terms that work for you.
So, why does negotiation matter?
It makes your budget go further. The right negotiation strategy can help you secure a home within your price range while keeping your finances in check.
It lowers your repayments. A better deal upfront means less to borrow and less to repay over time.
You can get better contract terms. Negotiation isn’t just about price. You can adjust settlement periods, deposit amounts, and conditions to fit your needs.
You can avoid overpaying. You risk paying above market value or missing out on savings without negotiating.
But how much negotiating power do you have? That depends on the market.
Understanding market conditions before negotiating
Knowing whether it’s a buyer’s or seller’s market can help you time your purchase and adjust your strategy.
Buyer’s market: More room to negotiate
A buyer’s market occurs when there are more properties for sale than buyers looking to purchase. This creates less competition, giving buyers more negotiating power and putting pressure on sellers to offer better deals.
In these situations, you’ve got the upper hand. Why? That’s because sellers are more motivated, meaning you can negotiate better price and terms.
But what are the signs of a buyer’s market?
Homes sit on the market longer: In 2025, the average time is 36 days*.
Price reductions and incentives: Sellers offering discounts or sweeteners.
Less competition at auctions: Fewer bidders mean lower final prices.
*Source: Monthly Housing Chart Pack - January 2025
So, how do you use this to your advantage?
Make a lower offer. Sellers are more likely to negotiate on price.
Negotiate contract terms. Request a longer settlement or repairs before purchase.
Be patient. With less demand, you have time to explore options.
Seller’s market: Less wiggle room, but still opportunities
A seller’s market happens when demand for homes is high, and there are more buyers than available properties. In this case, sellers have the upper hand, and properties often sell faster and at higher prices.
When demand is high, homes sell fast, often above the asking price. In this market, it’s less about negotiating the price and more about making your offer stand out.
Here are telltale signs of a seller’s market:
Properties sell quickly, often at or above the asking price.
Prices rising across multiple suburbs.
Sellers receiving multiple offers. If you are working with a buyer’s agent, this is the type of additional insights and data they may have access to help better inform your negotiation tactics.
So, how do you compete in a seller’s market?
Start strong. A lowball offer won’t cut it. Instead, offer a competitive price upfront.
Be flexible. Shorter settlements and higher deposits can make your offer more attractive.
Get pre-approved. Sellers prefer buyers who are finance-ready.
Being prepared gives you the best shot at negotiating the right deal, whether it’s a buyer’s or seller’s market.
How to strengthen your negotiation position
Negotiation isn’t just about what happens at the table; it’s about the groundwork beforehand. Here’s how to put yourself in the strongest position before making an offer.
1. Get home loan pre-approval.
A home loan pre-approval shows sellers you’re serious and ready to buy. It also gives you a clear budget so you can confidently negotiate. Why does pre-approval matter?
Determine your borrowing power: It helps you understand what you can afford.
Stronger negotiating position: Sellers prefer pre-approved buyers, reducing risks and ensuring a smoother sale.
Move fast: In a competitive market, having your finances sorted gives you the edge.
Chat with an Aussie broker to get your home loan pre-approved before making an offer.
2. Know the property’s true value.
Before negotiating, you must know the home’s worth, not just the seller’s asking price. How do you research property value?
Check recent sales. Compare similar homes in the area.
Analyse suburb trends. Is the market rising, stabilising, or cooling?
Check the listing history. If a property has been on the market for months, there may be room to negotiate.
To get started on your research, use Aussie’s property tool to check for median house prices across suburbs as well as listing histories for properties.
3. Identify the seller’s motivation.
If a seller is keen to sell quickly, you’ve got more negotiating power. But what are the common seller motivations you should look out for?
Relocating for work: They may prioritise speed over price.
Sitting on the market too long: The seller may be open to negotiation if a home has been listed for months.
Financial pressure: A seller facing mortgage stress may be more willing to accept a lower offer.
One pro tip: ask the agent why the home is being sold. You might get insights that helps your negotiation strategy.
Key strategies for negotiating a great price
Here’s how to play your cards right when it’s time to make an offer.
1. Start with a strong but reasonable offer.
Your first offer sets the tone. Too low, and you risk losing the deal. Too high, and you leave no room to negotiate.
Here’s an example: If a home is listed for $850,000, consider an initial offer between $810,000 and $830,000. This gives you room to negotiate while staying competitive.
2. Use time to your advantage.
Sellers are often more flexible at certain points in the sales process. So, when are the best times to negotiate?
After a failed auction: If a home didn’t sell, the seller may be more open to offers.
Near the end of a campaign: If the property hasn’t sold in weeks, it’s worth testing a lower offer.
3. Negotiate beyond just price.
It’s not just about the price; there are other ways to get a better deal. Here are the other things you can negotiate:
Inclusions: Ask for appliances or furniture to be included.
Repairs: Use the building inspection to negotiate for repairs or a price reduction.
Flexible settlement terms: Need more time? Ask for an extended settlement period.
4. Be ready to walk away.
Don’t be afraid to move on if the deal isn’t right. But why does it work?
Puts pressure on the seller. They may reconsider if they think they’re losing you.
Protects your budget. Overpaying now could cost you thousands in the long run.
Better deals might be around the corner. Patience pays off.
How a buyer’s agent or broker can help you negotiate
You don’t have to do it alone. A buyer’s agent and mortgage broker can help guide you through negotiations and secure a competitive deal.
Get pre-approved: A broker can help lock in your loan so you’re ready to negotiate.
Compare loans: brokers have access to multiple lenders and can find the most competitive deal.
Expert market insights: A buyer’s agent can help you analyse prices, trends, and seller motivations.
Book a free^ initial consultation with an Aussie Homes Buyer’s Agent to secure a great deal.
How Aussie can help you negotiate better
Negotiating a home purchase is one of the most powerful ways to secure a great deal and maximise the value of your investment.
By understanding market conditions, strengthening your negotiating position, and using smart tactics, you can confidently approach negotiations and come out ahead. But you don’t have to do it alone; having the right experts in your corner makes all the difference.
At Aussie, our mortgage brokers and buyer’s agents are here to help you navigate the home-buying process from start to finish. Our team of experts can help you:
Search for properties that fit your budget and lifestyle needs.
Get home loan pre-approval to strengthen your buying power.
Compare over 25+ lenders for the right rate and terms for you.
Understand market trends, provide expert property insights to negotiate smarter.
However, that’s not all. We also offer expert guidance, to help guide you through the process and work around your schedule to get you to your goal sooner.
Whether you’re a first-home buyer, an upgrader, or an investor, having the right strategy can make the difference between overpaying or getting great prices and terms.
Ready to negotiate like a pro and secure the right home at the right price? Speak to an Aussie broker today, and let’s make it happen! Book a free^ appointment now.
