Last week I submitted an offer that was $900,000 below the asking price for an A-grade home in Melbourne.
Some people would call that a lowball offer.
I didn’t.
I’m acting for an owner-occupier who has engaged me to represent one party only, the buyer. My responsibility is simple. Protect their interests and negotiate the best possible outcome.
That sometimes means having the confidence to start well below the advertised price.
The Market Told Me Where to Start
This wasn’t a random number.
The property has been on the market for nine months.
That’s a long campaign for a quality home.
Time on market tells you something. It doesn’t always mean there’s a problem with the property.
Sometimes it tells you the market isn’t accepting the vendor’s price expectations.
When that happens, buyers have more negotiating power than many realise.
The Agent Didn’t Laugh
What happened next was the interesting part.
The selling agent didn’t dismiss the offer.
There was no outrage.
No immediate rejection.
He simply said, “We need to bridge the gap.”
We had a constructive discussion about my client’s position and the reasoning behind the offer. He understood exactly where we were coming from.
That response tells you far more than the asking price ever will.
When a substantial discount is taken seriously rather than dismissed, it usually means both parties recognise there is room to negotiate.
Negotiation Can Save Hundreds of Thousands
On this particular purchase, I believe there is an opportunity to save my client somewhere between $300,000 and $600,000 compared to where the campaign began.
That isn’t luck.
It comes from understanding market conditions, reading vendor motivation, analysing comparable sales and knowing when buyers hold the stronger position.
Negotiating the right price is where significant value can be created.
Every Market Is Different
This doesn’t mean every Melbourne property should attract a low offer.
Far from it.
There are homes attracting multiple buyers where aggressive offers simply won’t work.
There are also campaigns where vendors have become more realistic after months on the market.
The skill is knowing the difference.
That’s where experience matters.
The Bottom Line
The best buyer’s agents don’t just open doors or organise inspections.
They know when to push.
They know when to hold back.
Most importantly, they know when the market gives buyers the upper hand.
In today’s Melbourne market, that knowledge can save buyers hundreds of thousands of dollars.
If you’re planning to upgrade or downsize your family home, my team and I can help.
Andrew Date is the founder of Industry Insider Property, a boutique buyer’s and vendor advocacy firm specialising in Melbourne’s prestige inner-eastern suburbs.
