Vendors are now accepting discounts of up to 14 per cent as buyer power strengthens, putting agents under pressure to sharpen their negotiation skills and secure the best possible outcome for sellers.
As property markets continue to slow down with fewer buyers ready to transact, vendors have been forced to accept lower prices to ensure they can settle.
Analysis of Cotality data by the Real Estate Buyers Agents Association of Australia (REBAA) found vendor discounts were becoming common, with some accepting offers 14 per cent below asking price.
Data showed that Culburra Beach in NSW had the largest vendor discount in the nation, with sellers taking 14.1 per cent less to ensure the property sold.
Charters Towers City in Queensland had the second-highest vendor discount at 12.8 per cent, while Daylesford in Victoria rounded out the top three with a vendor discount of 11.5 per cent.
Killara in Sydney ranked sixth nationally, with vendor discounts of 9.9 per cent and a median value of $2.74 million, meaning owners were willing to sell their property for more than $270,000 below value.
Queensland suburbs Ashmore, Merrimac and Paradise Point also featured among the nation’s most negotiable markets.
REBAA president Zoran Solano said the findings highlighted the importance of understanding local market movements rather than national data.
“While national property prices may tell one story, conditions on the ground can vary significantly from suburb to suburb,” Solano said.
“The data shows that there are many markets where sellers are becoming increasingly negotiable, which is creating opportunities for buyers who do their research and enter the market well prepared.”
Agents to negotiate harder
According to Pinnacle Buyers Agents founder Michael Lezaja, the current market conditions have left buyers in the box seat for the first time since COVID-19.
“This is the first real advantage the buyer has had in many years,” Lezaja told REB.
He said that while buyers may have held the power, seasoned agents could still use their significant negotiation experience to get the best result for their clients.
Lezaja said that agents should be upfront and honest, with potential buyers holding all the cards in the negotiation.
“In a rising market, buyers bend over backwards for agents. In a declining market, the shoe is on the other foot.
“The days of bluffing, of telling buyers you’ve got ridiculously high offers and multiple interested parties are over.”
He said that agents needed to remember that the current market required more consideration when managing leads.
Agents need to ensure they take the time to properly qualify and understand each buyer, as those with legitimate interest were few and far between.
“Many agents have only worked in a rising market where buyers came to them. That’s changed.”
“Treat every lead seriously.”
Lezaja said that while vendors were accepting bigger discounts and buyers were negotiating on price, it was important to remain respectful to the selling agent.
He said the best negotiators were the agents who took the time to build rapport and earn the buyer’s respect.
“The better you understand the purchaser, the easier it is to bring buyer and seller together and close the deal.”
“It really comes down to a good, honest conversation, and in my opinion, those are the agents who do best.”
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