If you want the best deal on your next real estate investment, you must understand negotiating tactics. From who makes the first offer to walking away, sales negotiations can be a minefield. Here’s what you need to know before entering discussions with a real estate agent.
Be Prepared
You can’t negotiate the purchase price unless you know what the property’s worth and how the current market conditions affect its value. Before you put forward any offer, do your homework — this way, you can approach the agent with confidence and make a convincing case.
Questions to ask an agent:
How much did the seller pay for the property? This lets you make a more informed offer.
Has the seller rejected any offers already? Knowing what offers (if any) have been rejected helps you make a smarter offer.
If you’re confused about the conveyancing process or this is your first investment property, it’s wise to engage an experienced agent.
Understand the Seller
Each seller has their own reasons for putting their home on the market. It’s important to understand, where possible, their situation. Above all else, sellers want the best deal on their property in the shortest amount of time. You can use this desire for efficiency to your advantage.
Questions to ask an agent:
Why is the seller letting this property go?
Is there scope for a quick closing?
If you’re investing in real estate, you should aim to understand the seller’s perspective.
First Impressions Matter
You should use confident — but not arrogant — body language when negotiating. Stand tall, use open gestures, and offer a firm but non-aggressive handshake. Clean, tidy clothing makes you seem like you take the negotiations seriously.
Make it clear you understand how real estate investing works. If you don’t have the confidence to give a great first impression, working with an experienced agent can help.
Be Prepared to Walk Away
You’ll never get the best deal unless you’re prepared to walk away from the property altogether. An agent senses this confidence and takes you more seriously.
Things to say:
I invest in real estate. I know what I’m looking at and what it’s worth.
I’ve already come up. This is a fair market price and I can settle quickly. (A sense of urgency is advantageous.)
For more insights on purchasing property and building your portfolio, download our free real estate investment ebook.
Updated 7th May, 2025