Offering 5% below asking on a detached home in Sydney

The 70 days on the market caught my attention, but the shortage of completed comparables makes me wary of reading too much into it. This detached Sydney home is listed at A$1,391,000 and needs updating.

I am thinking of offering A$1,321,450, which is 5% under asking, supported by evidence that my financing is arranged and some flexibility over completion. I would explain the price by reference to the condition and the limited sales evidence rather than criticising the seller’s expectations.

Would that come across as a serious opening offer? I can revise the price if better comparables emerge, but I do not want to give up inspection or finance protection under pressure. I’m also considering valuation risk, deposit exposure, the seller’s reason for waiting and whether identified work is better handled through the price or a repair credit.

The price itself isn’t insulting if the offer is presented cleanly. Give the figure, proof that financing is organised, your flexible completion terms and a reasonable response deadline. Base the rationale on condition and the limited completed-sale evidence, not on telling the seller the house is overpriced.

I would not waive building and pest inspection merely because of agent pressure. Is the required updating clearly cosmetic, and has the agent indicated why the seller has remained on the market for 70 days?

I’d be slightly more cautious about treating 70 days as bargaining power. It could show weak demand, but it could equally mean the seller is prepared to wait. Completed comparables matter more than the listing period or nearby asking prices.

Also clarify what “clean financing” means. If you still require finance approval, say so rather than creating ambiguity. A lender valuation below your offer could leave an appraisal gap, and the consequences for your deposit depend on the contract terms. Have a Sydney conveyancer or solicitor examine those terms before you remove any protection.

One practical sequence: submit the offer with financing evidence, inspection and finance conditions, flexible completion, and a clear expiry. If the inspection later identifies material defects, request a specific price adjustment or repair credit supported by the findings. Don’t use an inspection to renegotiate purely cosmetic updating already visible when you offered; that is more likely to sour the discussion.