How to negotiate the price of buying a house in Melbourne? Save $100,000 with these tips!
Recently, the Melbourne real estate market has continued to grow in popularity, becoming the focus of global investors and local home buyers. According to the analysis of hot topics on the Internet in the past 10 days, adjustments to Australia's interest rate policy, surge in demand for housing in school districts, and changes in first-time homebuyer subsidies are the three hot topics that receive the most attention. This article will combine the latest market trends to reveal the bargaining techniques for buying a house in Melbourne.
1. Overview of Melbourne’s current real estate market
| indicator | data | Trend |
|---|---|---|
| Median house price | $905,000 | A month-on-month decrease of 1.2% |
| Average days on market | 42 days | A year-on-year increase of 15% |
| auction clearance rate | 63% | down 8% year-on-year |
| Proportion of first-time home buyers | 28% | Increased 3% month-on-month |
It can be seen from the data that the Melbourne real estate market is currently in a buyer's market, which provides home buyers with more room for negotiation. In particular, the increase in days on market and the decrease in clearance rates indicate that sellers are facing greater pressure to sell.
2. 5 Practical Tips for Bargaining
1.Seize the best time to negotiate
According to internal data from real estate agencies, the success rate of bargaining is highest during the following time periods:
| time period | Room for bargaining | success rate |
|---|---|---|
| 30-45 days after listing | 5-8% | 78% |
| Winter (June-August) | 3-5% | 65% |
| Financial year end (June) | 4-7% | 72% |
| After the auction failed | 8-12% | 85% |
2.Make the most of your home inspection report
Every problem discovered by a professional building inspection can become a bargaining chip. According to statistics:
• Structural issues: price can be reduced by 5-15%
• Circuit problems: 2-5% discount available
• Waterproof problem: price can be reduced by 3-8%
3.Understand regional price rules
There are significant differences in bargaining space across Melbourne districts:
| area | median price | Average bargaining space |
|---|---|---|
| CBD | $650,000 | 2-3% |
| Eastern District (such as Box Hill) | $1,200,000 | 4-6% |
| West End (e.g. Footscray) | $750,000 | 5-8% |
| Northern District (e.g. Bundoora) | $850,000 | 3-5% |
4.Take advantage of competitor quotes
When there are other buyers competing, the "decreasing quotation method" works best:
First offer: 8% below asking price
Second offer: 5% lower than asking price
Final offer: 3% below asking price
5.Professional Negotiation Strategies
• Advantages for cash buyers: you can get an additional 2-3% discount
• Fast delivery discount: 1-2% discount available
• High down payment ratio: you can get additional discounts on terms
3. The latest policy impact in 2023
According to recent policy changes, the following groups enjoy special bargaining advantages:
| House buying group | preferential policies | Bargain bonus |
|---|---|---|
| first time home buyer | stamp duty relief | +2% bargaining space |
| owner occupier buyer | low interest rate loan | +1.5% bargaining space |
| overseas buyers | Additional tax required | -3% bargaining space |
4. Expert advice
1. Obtain the seller’s motivation in advance: Understand the seller’s situation through an intermediary. Special reasons such as immigration and divorce can increase the bargaining space by 10-15%.
2. Choose the right agent: Buyer-specific agents can get 3-5% more discounts than sellers’ agents.
3. Make good use of the silence strategy: If you remain silent during negotiations, you may unexpectedly gain 1-2% additional concessions.
5. Typical case analysis
In August 2023, a Chinese buyer purchased a property priced at $2,000,000 in South Yarra for $1,850,000, with a discount of 7.5%. The key to its success lies in:
• Opt for late winter showings
• Take advantage of the third day after the auction fails
• Show $35,000 in repair costs identified in professional home inspection report
• Commitment to complete delivery within 21 days
Mastering these skills and taking into account the current market situation, it is completely feasible to reduce the price of a house in Melbourne by 5-10%. It is recommended that home buyers be fully prepared, seize the interest rate adjustment window period, and strive for the best discounts under the guidance of professionals.
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