Making an offer on a property is one of the most significant financial decisions most people will ever make — and most buyers do it with very little preparation. This guide covers everything you need to know: how to research the right price, how to structure your offer, how to negotiate with a selling agent, and when to walk away.

Step 1 — Research Comparable Sales Before You Offer

Before you make any offer, you need to know what the property is actually worth. This means researching recent comparable sales — not the agent’s price guide, which is frequently set below expected sale price to drive enquiry and create competition.

Look for sales in the same suburb, same property type (house, unit, townhouse), similar land size, similar condition, within the last 90 days. Three to five genuine comparables give you a reliable value range.

Tools to use: Domain, realestate.com.au, CoreLogic, and the Collings GeeVee platform for investment-grade market value analysis.

Step 2 — Understand the Vendor’s Situation

The best negotiators understand what the vendor wants beyond price. Ask the agent:

• How long has the property been on the market?
• Has the vendor already purchased elsewhere?
• Is there a preferred settlement date?
• Have there been any other offers?

A vendor who needs a fast settlement may accept a lower price. A vendor who needs a long settlement to find their next property may pay a premium for flexibility.

Step 3 — Choose Your Offer Structure

In Victoria (and most of Australia), you have several options:

• Written offer with a deposit: The most common private sale approach. Submit a signed contract of sale with your offer price, conditions and deposit amount (typically 10%).
• Expression of Interest (EOI): Used on higher-value properties. You submit a price and conditions by a closing date; the vendor selects the best offer.
• Auction: Public bidding process — the highest bid above reserve wins unconditionally. No cooling-off period applies.
• Pre-auction offer: Offering before the auction campaign closes. This can work if you offer a strong enough price to persuade the vendor to sell before auction day.

Step 4 — Set Your Maximum Price Before You Offer

This is the most important step — and the one most buyers skip. Before you make any offer or bid at auction, set a firm maximum price based on your research. Not a vague range. A specific number.

Your maximum should be based on:

• Comparable sales data (not the agent’s price guide)
• Your own financial capacity (pre-approval + buffer)
• What the property is worth to you specifically (location, condition, features)

Once you have a maximum, the negotiation becomes much simpler — you either buy it at or below that number, or you walk away.

Step 5 — Make Your First Offer Strategically

Your opening offer sets the negotiation anchor. Offer too low and you may insult the vendor or trigger a competing buyer. Offer too high and you’ve given away your negotiating room.

A common approach:

• Open 3-7% below your maximum price if you have room to move
• Justify your offer with comparable sales evidence — agents respond better to data than to assertions
• Include conditions that protect you: finance condition (14 days), building and pest inspection (7 days), appropriate settlement period

Step 6 — Negotiate Through the Agent

In a private sale, you negotiate through the selling agent — who is legally obligated to act in the vendor’s best interest, not yours. Keep this in mind in every conversation.

Effective negotiation tactics:

• Never reveal your maximum price to the agent
• Counter in smaller increments as you approach your ceiling (signals you’re close to done)
• Use conditions and settlement terms as negotiating levers — not just price
• Create mild urgency without desperation (“We need to know by Friday as we’re looking at another property”)

Common Mistakes When Making an Offer

• Relying on the agent’s price guide as an accurate value estimate
• Not doing comparable sales research before offering
• Revealing your maximum price or genuine enthusiasm to the agent
• Making offers without conditions on a private sale (conditions protect you)
• Letting emotion drive the negotiation rather than data
• Not having finance pre-approval before making an offer

Should I Use a Property Advisor When Making an Offer?

If you’ve found the property yourself but want professional support for the negotiation, a property advisor is the most cost-effective solution. Unlike a buyers advocate (who charges 2-3% of the purchase price to find and buy a property for you), a property advisor works with you on a property you’ve already found — providing market value analysis, offer strategy and agent negotiations at a fixed fee.

	Property Advisory	Buyers Advocate	DIY
Market value analysis	Yes	Yes	Self-directed
Offer strategy	Yes	Yes	Guesswork
Agent negotiation	Yes	Yes	You negotiate
You found the property	Yes	No — they find it	Yes
Fee on a $900k property	$4,500 fixed	$18,000-$27,000	$0 (but risk of overpaying)

Frequently Asked Questions

Can I make an offer below the price guide?

Yes — and you should always test the market before offering at or above the price guide. The price guide is set by the selling agent to attract enquiry; it is frequently below the vendor’s reserve. Your offer should be based on comparable sales, not the price guide.

What happens after I make an offer?

The agent presents your offer to the vendor. The vendor can accept, reject or make a counteroffer. If they counter, you enter a negotiation. This continues until both parties agree or one walks away.

Do I need to pay a deposit when I make an offer?

In Victoria, a deposit (typically 10% of the purchase price) is paid when the contract becomes unconditional — not necessarily at the time of offer. Some agents ask for a holding deposit to demonstrate genuine intent. Always check the terms before paying anything.

Can I negotiate after a building inspection?

Yes. If your building inspection reveals defects not disclosed by the vendor, you can request a price reduction, ask the vendor to repair the defects before settlement, or withdraw from the contract (if you have a building inspection condition). This is one of the most powerful negotiating moments in a property purchase.

Get Professional Help Making Your Offer

If you’ve found a property and want expert negotiation support, Collings Property Advisory provides independent advice at a fixed fee of $4,500 + GST. We research comparable sales, set your offer strategy and negotiate with the agent on your behalf.

Learn more about Collings Property Advisory or get in touch here.