Buying your first home? The excitement is real, but so is the pressure when it’s time to make an offer. How much is too much? Should you go in low and negotiate, or come out swinging with a strong bid? What if you overpay? What if you miss out?
If you're feeling the tug-of-war between fear of missing out and fear of paying too much, you’re not alone. Let’s break it down so you can make a smart, confident offer – and avoid the common traps many first-home buyers fall into.
Understand the Market First
Before you make any offer, research recent comparable sales in the area, not just the listing price. In some cases, the listing price may not reflect recent comparable sales, so relying solely on the asking price can be misleading. Use tools like realestate.com.au’s sold data or CoreLogic to get a feel for what similar homes are actually selling for.
It can be helpful to understand general market conditions and how long similar properties have been on the market, which may offer context when preparing an offer. A good buyer’s agent or solicitor may help you gain further perspective.
Set Your Budget (And Stick to It)
Work out your walk-away number before you make an offer. That means factoring in more than just your deposit and loan pre-approval. Think stamp duty, building inspections, conveyancing fees, insurance...the works. One of the biggest regrets first-home buyers report? Overstretching themselves and becoming "mortgage broke."
Use your bank’s borrowing calculator or, better yet, refer to the budgeting tools inside the First Home Buyer e-book for a clearer picture of your financial comfort zone.
Know What to Include in Your Offer
In a private sale (non-auction), your written offer can include "conditions", and these are your safety net. Common ones are:
- Subject to finance
- Subject to a satisfactory building and pest inspection
- Subject to sale of an existing property (less common for first-home buyers, but worth knowing)
These conditions are commonly included in private sale contracts and can provide safeguards, but you should discuss your specific situation with your solicitor or conveyancer.
Lowball or Go Strong?
This is the age-old debate: start low and risk losing the seller’s interest, or offer close to your max and hope to seal the deal?
If the property is new to market or hotly contested, a stronger initial offer may be viewed favourably in competitive markets, though outcomes vary case by case. But if the property’s been sitting for a while, or the market is cooling, you may have more wiggle room to negotiate.
Either way, keep emotion out of it. It’s easy to fall in love with a house and overbid – but remember, there will be other opportunities if this one doesn’t work out. Your goal is value, not just victory.
Final Tip: Put It in Writing
In most cases, written offers are the formal method used to present terms to a seller. Always submit your offer in writing, usually through the real estate agent, and get confirmation when it's passed on. If it’s accepted, you’ll receive a Contract of Sale, this is where your solicitor or conveyancer steps in to review everything before signing.
Feeling Lost in the Process?
You're not expected to know it all – but you can be prepared.
Our free First Home Buyer e-book gives you the full picture, including:
- A step-by-step offer checklist
- Real-world negotiation scripts
- What to do after your offer is accepted
- Building and pest inspection tips
- Sample contracts explained in plain English
The guide is designed to help you feel more informed as you navigate the offer process. Download the e-book and get confident from deposit to keys.
