Question 1

Why plan my offer limit before I go to negotiation?

Accepted Answer

Because the pressure of negotiation — especially at auction — makes it easy to justify 'just one more bid'. Buyers who enter negotiations without a pre-committed walk-away price consistently overpay. Writing your limit down before the day means your decision was made calmly, not emotionally.

Question 2

What conditions should I include in a private treaty offer?

Accepted Answer

Finance and building and pest inspection are standard and strongly recommended. Finance condition gives you an exit if your lender declines the loan. Building and pest gives you an exit (or renegotiation leverage) if serious problems are found. Subject to sale of your current home is sometimes included but significantly weakens your offer — vendors will often reject or counter. In competitive markets, some buyers waive conditions to compete — only do this after legal advice and a pre-obtained building report.

Question 3

What does 'walk-away price' mean?

Accepted Answer

Your walk-away price is the point at which you will not proceed regardless of pressure, agent tactics, or emotional attachment. It is different from your maximum — your maximum is the most you'd pay if needed; your walk-away is the point at which the deal stops making financial sense. Setting both in advance prevents regret.

Question 4

How do I interpret underquoting when setting my offer?

Accepted Answer

If a property is quoted at $750,000–$820,000 in a market where similar properties sell 8–15% above the bottom of the quoted range, your actual starting estimate should be $810,000–$940,000. Use recent comparable sales data (available on domain.com.au and realestate.com.au) rather than the agent's quoted range to estimate a realistic price. Your offer should be based on your own research, not the quote.

Property offer planning worksheet

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