Making a competitive offer on a property is not just about the number. How you structure the offer, the conditions you include, the settlement date you propose, and the way your offer is presented all affect whether the seller accepts it — and at what price.
Step 1: Know What the Property Is Actually Worth
Before you write an offer, you need to understand market value — not the agent’s quote, not REA’s Estimate, not what the vendor paid five years ago. You need comparable sales data: properties with similar features, in the same suburb, that settled in the last 90 days.
This is the first thing Collings does in every advisory engagement. Without an independent view of value, you are either overpaying or making low-ball offers that poison the negotiation.
Step 2: Understand the Vendor’s Motivation
Not every vendor is purely motivated by price. Some vendors need a long settlement to find their next property. Some need a short settlement because they have already bought. Some have estate constraints. Understanding what the vendor actually needs can make your offer more competitive without raising your price.
Common non-price terms that can win deals:
- Flexible settlement date that suits the vendor
- Unconditional offer (no finance or building inspection clause)
- Larger deposit (shows commitment and financial strength)
- Leaseback arrangement (lets vendor stay on for a period after settlement)
Step 3: Decide on Your Price Strategy
There are two main approaches to making an initial offer:
The anchoring approach: Make a meaningful opening offer — not insultingly low, but below your target — and leave room to negotiate up. This approach works in markets where there is only one interested buyer or the property has been sitting for more than 30 days.
The best-and-final approach: In competitive markets with multiple interested parties, your best offer may need to be your first offer. Coming in low and asking for a counter can see you lose to another buyer who submitted a stronger initial offer.
The right approach depends on the market conditions in that suburb at that time — which is why having a property advisor assess the situation before you submit is so valuable.
Step 4: Structure the Offer Properly
A verbal offer carries no weight. Your written offer should include:
- Purchase price
- Deposit amount and when payable
- Settlement date
- Any conditions (finance, building inspection)
- Expiry date and time of the offer
- Evidence of your pre-approval (or unconditional finance capacity)
Setting an expiry on your offer (24 to 48 hours) creates urgency and prevents the agent from shopping your offer to other parties indefinitely.
Step 5: Present the Offer Professionally
How an offer is delivered matters. An offer accompanied by a brief letter from the buyer — expressing genuine interest in the property and explaining your situation — can tip the balance in your favour when the vendor is choosing between similar offers. Vendors are human. A personal connection to the buyer can influence their decision.
How Collings Property Advisory Helps
At Collings, we handle the full offer process for buyers on our advisory program. We assess the property’s value, analyse the vendor’s motivation, build the negotiation strategy, prepare the offer, and negotiate directly with the selling agent on your behalf. Fixed fee $4,500 + GST — no commission, no percentage of purchase price.
Frequently Asked Questions
Should I offer above the asking price?
Only if comparable sales support it and you are in a competitive multi-offer situation. Never offer above asking price without independent confirmation that the property is worth it.
How much below asking price should my first offer be?
It depends on how long the property has been listed, the number of competing buyers, and how accurately the agent has priced it. A property advisor can tell you this based on real data — not guesswork.
Can I negotiate after a building inspection?
Yes. If significant issues are identified in a building and pest inspection, you can renegotiate the price or request rectification as a condition of proceeding. This is a common and legitimate negotiation point.
Found a property and need help making the right offer? Collings Property Advisory. Fixed fee $4,500 + GST. We assess value, build strategy, and negotiate on your behalf.
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
