Buyers gain negotiating power as property market slows

As property listings rise and clearance rates soften, buyers are gaining greater leverage at the negotiating table. But according to Victor and Reshmi Kumar of Right Property Group, successful negotiation is about far more than simply pushing for a lower price.

Price is only one part of the deal

Negotiation can involve both the purchase price and the terms attached to a deal. Understanding why a vendor is selling can give buyers opportunities that may not be immediately obvious.

A vendor may prioritise a longer settlement, flexibility around moving, or assistance with removing unwanted items from the property. Identifying those needs can allow a buyer to structure an offer that delivers value to the vendor without necessarily paying the highest price.

Finding out what the vendor really wants

Victor emphasised the importance of asking open-ended questions and having genuine conversations with vendors or agents.

Questions about where a vendor is moving next or what their plans are can reveal motivations that standard property negotiations may overlook.

That information can then be used to build an offer around the vendor’s priorities rather than focusing exclusively on price.

Building a tiered offer

Buyers can also approach negotiations by presenting different options.

One offer might focus heavily on achieving a lower purchase price, while another could offer more favourable settlement terms. A third option can combine price with concessions designed around the vendor’s specific circumstances.

This approach gives both sides more variables to negotiate and can create opportunities that a simple price-based negotiation misses.

Know when to walk away

Even when negotiations appear promising, buyers need to consider whether the property actually fits their broader investment strategy.

They stress the importance of assessing a property’s place within the portfolio, including its potential exit strategy, before becoming too invested in the deal.

Commercial property demands deeper due diligence

The negotiation process also differs significantly between residential and commercial property.

Residential transactions generally involve simpler due diligence and shorter cooling-off periods, while commercial purchases can involve significantly longer periods and more complex analysis.

Commercial buyers need to examine tenant strength, lease structures, outgoings, ad-backs and whether rental income reflects industry-standard rates before committing to a purchase.

Reshmi and Victor Kumar at the Ticker Studio

Negotiation is more than getting the lowest price

In a changing property market, greater buyer leverage does not automatically translate into a better deal. Understanding the vendor, structuring the right terms and ensuring the property fits the broader investment strategy can be just as important as the final price.

For more information, visit the Right Property Group