Offering 9% below asking on Sydney student housing — sensible or too aggressive?

L

loft.balanced

First-time buyer
Established
I’m looking at a Sydney student-housing property listed for A$478,800. It has been available for 72 days and needs updating. Nearby asking prices are similar, but I can’t find enough completed sales to establish where buyers are actually settling.

I’m considering opening 9% below asking, supported by clean financing and flexibility on the completion date. How would you explain the figure without antagonising the seller? The agent keeps saying somebody else will waive protections, but I’m reluctant to give up inspection or finance conditions. I’m also conscious of valuation risk, repair costs and exposing the deposit if the deal goes wrong.
 
Keep the rationale short and impersonal: limited completed evidence, condition, and the cost of the required work. Attach whatever financing proof you can provide and offer a settlement timetable that suits the seller, then give the offer a clear response deadline.

I wouldn’t waive inspection protection merely because the agent says another buyer might. Nor would I remove finance unless you could complete despite a low lender valuation.
 
One important question: what does “student housing” mean for this particular property? Is it an ordinary unit currently rented to students, or does the title, building or management arrangement restrict occupation or resale? Also, is it vacant or subject to an existing lease? Those details may matter more to value and financing than the cosmetic updating.
 
I’d be careful about treating 72 days and needed updates as proof that 9% is justified. The seller may simply have no urgency, and comparable asking prices don’t establish a discount.

That doesn’t mean the offer is too aggressive; it means you should choose it from your own ceiling rather than pretend there is stronger evidence than you have. Work out how much of a valuation gap and repair bill you could absorb before offering.
 
Good points. By clean financing I mean pre-approval and documents ready, not cash, so I won’t describe it as unconditional. The updating appears mostly cosmetic, but I still want an inspection because I can’t know what is hidden.

I’ll also clarify the occupancy/title arrangements and whether the seller values a particular settlement date. My current plan is still to start 9% under, keep finance and inspection conditions, and avoid asking for repair credits later unless the inspection uncovers something genuinely unexpected.
 
That is a more credible package. Put the price, deposit, conditions, preferred settlement range and expiry in one written offer. Ask the agent to present it rather than negotiate only by phone.

Before signing, have the contract and deposit exposure checked by a Sydney conveyancer or solicitor, especially given the student-housing description. Decide in advance whether you would bridge any lender-valuation shortfall and set a firm maximum. If the seller counters, compare the counter with that maximum—not with the asking price or the agent’s claim about another buyer.
 
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