First Home Buyers Have More Negotiating Power. Here’s How to Use It.
For the past few years, buying your first home in Brisbane has often meant turning up to packed open homes, competing with multiple offers and feeling like you need to make a decision almost immediately. Right now, we’re starting to see that change.
Competition has eased in parts of the market; properties are taking longer to sell and auction clearance rates have fallen. For first home buyers who have spent the last few years feeling like the market was always one step ahead of them, that shift could create some real opportunities.
But having more negotiating power doesn’t automatically mean getting a better deal. The buyers who are in the strongest position are usually the ones who have done their homework before they find the property they want.
Get your finance sorted first
Before you start seriously looking at properties, understand what you can actually afford and have your finance in order.
A pre-approval can give you a much clearer idea of your price range and means you’re not trying to work everything out once you’ve already found a home you love. It also allows you to negotiate with a clear limit in mind rather than letting emotion decide how much you’re prepared to spend.
Understand the seller
Negotiating isn’t always just about offering the highest price.
Finding out why the owner is selling, how long the property has been on the market and whether there are other genuine buyers can help you understand the position you’re negotiating from. A seller who needs a particular settlement timeframe for example, may value different terms to another seller who is simply focused on achieving the highest possible price.
Don’t reveal your maximum too early
Knowing your ceiling before negotiations begin is important. Sharing it is another story.
Decide what the property is worth to you and what you’re genuinely comfortable paying. If there’s room to negotiate, you don’t necessarily need to lead with the highest amount you’re prepared to offer. And most importantly, be prepared to walk away. There will always be another property.
Do your due diligence
More negotiating power doesn’t mean skipping the basics.
Building and pest inspections can uncover issues that aren’t obvious during an open home, from structural concerns to termite damage or moisture problems. It’s a good idea to arrange an inspection before you buy, so you have a clearer picture of the property and any potential issues before moving forward.
Your conveyancer or solicitor can also guide you on appropriate contract conditions before you sign anything.
Know what support you may be eligible for
For first home buyers in Queensland, it’s also worth understanding the concessions and assistance that may be available to you.
Depending on the property and your circumstances, you may be eligible for transfer duty concessions or other first home buyer support. Knowing what you qualify for before you begin can make a meaningful difference to the numbers.
Preparation is your biggest advantage
A changing market can create opportunities, but the best negotiating position isn’t simply being the person willing to make the lowest offer.
It’s knowing your borrowing capacity, understanding the property, having your finance ready and being confident about where your limit sits.
For first home buyers who have been waiting on the sidelines, now could be a good time to understand where you stand. Speak with the Madd team before you start looking and we’ll help you work through your borrowing capacity, pre-approval and the finance side of the process so you’re ready when the right property comes along.
