top of page

Remember When Buyers Were Allowed To Think?

Bob Malpass
Oct 8
3 min read

A slower property market may be giving buyers something valuable back: time



For the past few years, buying property often felt like a race.

- Inspect Saturday.

- Decide quickly.

- Make an offer.

- Hope someone else does not offer more.


In many parts of Australia, that urgency has eased.


Homes are taking longer to sell, buyers have more properties to consider and negotiations are becoming more common.


Recent national data shows selling conditions have softened considerably compared with a year ago.


For buyers, that does not have to be bad news. A little more time can create the opportunity to make a better decision.

Use the breathing room.


When competition is intense, buyers can become focused on one thing:

“How do I secure this property?”


A more balanced market allows a different question:

“Is this actually the right property for me?”


That extra thinking time can be used to:

  • compare recent sales,

  • inspect the property more than once,

  • investigate the neighbourhood,

  • arrange building and pest inspections,

  • review strata records where relevant,

  • understand likely maintenance costs,

  • compare alternative properties, and

  • work through the finance before increasing an offer.


None of this guarantees you will purchase for less.


It does mean your decision may be based on more information and less pressure.


Know your numbers before negotiating

More negotiating power is useful only when you know where your own boundaries sit.


Before deciding what a property is worth to you, understand:

  • your current borrowing capacity,

  • the repayment at your intended loan amount,

  • purchasing costs,

  • how much cash will remain after settlement,

  • the repayment impact if interest rates rise, and

  • the maximum price you are comfortable paying.


There is an important difference between being able to offer more and choosing to borrow more.



Our finance team can help model different purchase prices and repayment scenarios before negotiations become emotional.


That gives you a personal ceiling based on your finances rather than the behaviour of another bidder.


Negotiation is not always about price

A more balanced market may also create room to discuss other parts of the transaction.


Depending on the property and seller, negotiations may involve:

  • settlement timing,

  • deposit arrangements, or

  • contract conditions as well as price.


The strongest offer is not necessarily the highest offer in every situation.


A seller who has already purchased elsewhere may value certainty or a particular settlement date. Another may prefer flexibility.


Your solicitor or conveyancer should advise you on contractual matters before you agree to changes or conditions.


Understanding what matters to both sides can sometimes create an outcome that works well for everyone.


First home buyers may finally have time to learn

For first home buyers, extra breathing room can be particularly valuable.


You are learning about:

  • contracts,

  • deposits,

  • inspections,

  • loan approvals,

  • property values, and

  • negotiation at the same time as making one of your largest financial decisions.


You do not need to know everything before beginning.


However, having your finance position understood early can allow you to focus on whether a property suits you rather than trying to work out whether you can afford it while everyone else is making offers.


Investors can afford to be selective

A slower market can also give investors more opportunity to examine the fundamentals.


Rather than buying because a property appears cheaper than it was several months ago, consider:

  • realistic rental income,

  • vacancy assumptions,

  • strata and maintenance expenses,

  • insurance,

  • location and tenant demand,

  • future borrowing capacity, and

  • how the investment performs if values remain flat for a period.



A slower market does not automatically make every property a good opportunity.

It may simply give you more time to find the right one.


Questions worth asking yourself

  • Am I clear on my comfortable purchase limit?

  • Have I compared enough properties to recognise value?

  • What am I unwilling to compromise on?

  • Have I allowed for purchasing costs and a cash buffer?

  • Am I negotiating because the property suits me or because I am afraid of missing it?

  • Have I discussed the finance before making an offer?


Finance Matters takeaway

  • Property markets continually change.

  • Right now, buyers in many areas may have something they have not enjoyed for a while: more choice, more negotiating room and more time to think.

    Use it.

  • The opportunity may not simply be purchasing a property for less.

  • It may be making a better property decision.


KNOW YOUR NUMBERS BEFORE YOU NEGOTIATE.

A little more time can be valuable when you know how to use it.


We hope this month’s article is helpful while you contemplate your next property move.


If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email bob@westhomeloans.com.au

 
 
bottom of page