There is no reliable percentage that applies to every Sydney property. An offer 5% below the asking price could be too high for an overpriced home or too low for a well-priced one with several serious buyers. Start with recent comparable sales, assess the property’s condition and check the competition. Then decide your opening offer and the maximum you are prepared to pay.
Sydney buyers currently have more room to be selective. According to Cotality, Sydney’s final auction clearance rate was 52.8% for the week ending 13 September 2026. The preliminary rate for the following week was 54.2%. Those figures describe the broader market; they do not tell you what a particular home is worth. (Cotality’s final results; preliminary results)
Is it acceptable to offer below the asking price?
Yes. An asking price or agent guide is part of the seller’s marketing strategy, not an independent valuation. A lower offer is easier to justify when recent comparable sales support it, the home needs work, the campaign has stalled or the property has passed in at auction.
The percentage below the guide matters less than the evidence behind your number. A strong offer also has clear terms, a realistic timeframe and a buyer who is ready to proceed. Have your solicitor or conveyancer review the contract and any proposed conditions before you commit.
How do you work out the right offer?
1. Compare genuinely similar sales
Look at recent sales in the same suburb or nearby streets. Compare land size, condition, layout, parking, aspect and location.
A renovated house on a quiet street is a poor benchmark for an unrenovated home on a busy road, even if both have the same number of bedrooms. Use the sales evidence to establish a value range of your own, separate from the agent’s guide.
2. Account for the property’s risks and costs
Building issues, strata concerns, awkward layouts and needed renovations can all affect what you should pay. Arrange professional inspections and advice where appropriate. Estimate repair costs realistically and allow for uncertainty.
3. Assess the competition
Ask when the campaign began, whether offers have been made and what has changed since the property was listed. Look at the other suitable homes currently available to buyers.
Listen to what the selling agent says about competing interest, but test that information against the evidence. Do not abandon your price limit because you feel pressured to act.
4. Set an opening offer and a walk-away price
Your opening offer should be a price you can support with evidence. Your walk-away price is the most you would pay after accounting for the property’s condition, purchase costs, your finances and your alternatives.
Decide both numbers before negotiations become emotional. You may move from your opening offer, but a series of small counteroffers should not quietly push you beyond your limit.
If you have found a property and want independent price analysis or someone to manage the agent discussions, see our Sydney Negotiation & Due Diligence service.
Should you offer 5% or 10% below asking?
Do not start with a fixed discount. A property guided at $2 million is not automatically worth $1.9 million because you have chosen to offer 5% less.
If comparable sales point to a value well below the guide, even an offer 10% lower may be justified. If the guide is already below fair value and several buyers are ready to act, offering 5% less may take you out of contention.
The useful question is: “What price can I defend with sales evidence, and what price still works for me?”
What if the property passes in at auction?
A passed-in auction means the property did not sell under the hammer. It may give you an opportunity to negotiate on price or terms, but it does not mean the vendor will automatically accept a discount.
Find out what was bid, what the seller wants and whether other buyers remain interested. Then return to your own value range before making an offer.
Our Auction Bidding Service includes price analysis and support with negotiation if a property passes in. You can also read our guide to bidding at auction in Sydney.
Is September 2026 a good time to negotiate in Sydney?
There are opportunities, but conditions vary sharply from one property to another. As at 23 September 2026, the RBA cash rate target is 4.35%, with its next decision scheduled for 29 September. Borrowing costs and buyer confidence matter, but neither determines what an individual property will sell for. (RBA cash rate target)
Check your lending position and assess each home on its merits. For the broader timing question, read Is Now a Good Time to Buy Property in Sydney?.
Frequently asked questions
Will a low offer offend the seller?
An offer supported by comparable sales, made respectfully and with workable terms, gives the seller something concrete to consider. An arbitrary low figure is less likely to start a useful conversation.
Should I tell the agent my maximum budget?
You can explain how you arrived at your offer without volunteering your absolute limit. Keep your walk-away price clear within your own buying team.
Can I negotiate terms as well as price?
Often, yes. Settlement timing and other contract terms may matter to a seller. Ask your solicitor or conveyancer to advise on the effect of any proposed changes before you agree to them.
What if another buyer offers more?
Reassess the evidence and your limit. A rival offer does not change the property’s condition or your finances. If the price moves beyond what you can justify, be prepared to walk away.
Get an independent view before you offer
I have worked in Sydney real estate for more than 30 years and attended more than 1,000 auctions. The strongest negotiations begin before the first offer, with clear evidence about value, an understanding of the risks and a firm price limit.
If you have found a property, send TBAS® the address and the agent’s price guide. We can assess the purchase and discuss your options through our Negotiation & Due Diligence service or Buy Before You Buy™ independent advice service. Contact Rodney McLoughlin before you commit.