Making an offer on a property is one of the most stressful parts of the buying process — especially in a competitive market. Get it right and you secure the property at the right price. Get it wrong and you either miss out or overpay. Here is how to make a competitive offer without overpaying.
Step 1: Establish the Market Value Before You Offer
The most important thing you can do before making an offer is understand what the property is actually worth. Research recent comparable sales — properties of a similar size, type and condition that have sold in the same suburb within the last 3-6 months. If you are unsure, a Collings property advisor can prepare a comparable sales analysis as part of our buyer advisory service.
Step 2: Understand the Vendor’s Situation
A competitive offer is not always about the highest price — it is about what the vendor needs. Ask the agent:
- How long has the property been on the market?
- Has the vendor had any prior offers?
- What is the vendor’s preferred settlement date?
- Is the vendor motivated to sell quickly?
Understanding the vendor’s priorities lets you structure an offer that addresses their needs — which is often more compelling than a higher price with inconvenient terms.
Step 3: Structure Your Offer Strategically
A competitive offer typically includes:
- Price: Based on comparable sales evidence, not the asking price
- Deposit: A larger deposit (10% rather than 5%) signals commitment and confidence
- Settlement: Flexible or vendor-preferred settlement dates make your offer more attractive
- Conditions: Fewer conditions (subject to finance, subject to inspection) make your offer cleaner and more competitive — but only remove conditions you are comfortable removing
Step 4: Make Your Offer Professionally
Put your offer in writing with a formal contract of sale or written offer letter. A verbal offer is not legally binding and can be easily dismissed or used as a floor for other buyers to beat.
Step 5: Negotiate Confidently
Do not show your maximum budget. Make an opening offer that is reasonable but leaves room to move. If the agent counters, respond with evidence — not emotion. Comparable sales data is your most powerful negotiating tool.
How a Property Advisor Can Help
At Collings, our buyer advisory service includes comparable sales analysis, offer strategy, offer preparation and full agent negotiations — all for a fixed fee of $4,500 + GST. We give you the same negotiating power as a buyers advocate without the $15,000-$25,000 fee.
Frequently Asked Questions
Should I offer below asking price?
It depends on the market and how long the property has been listed. In a strong market, properties often sell above asking price. In a slower market, below-asking offers are common. Comparable sales evidence tells you where the true market value sits.
Is a higher deposit better?
Yes, generally. A larger deposit signals financial strength and commitment, which can be decisive when a vendor is choosing between similar offers.
Can I make an offer before the inspection?
You can, but it is generally not advisable. Make your offer subject to a building and pest inspection so you have the option to renegotiate or withdraw if significant issues are found.
Make Your Next Offer Count
A well-structured, evidence-backed offer gives you the best chance of securing the property at the right price. Collings Property Advisory provides independent offer strategy, negotiation support and comparable sales analysis for a fixed fee of $4,500 + GST.
Talk to a Collings property advisor before you make your next offer.
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