Buying in Sutherland Shire: Price & Negotiation Tips

Introduction

Buying a home in Australia’s competitive property market – especially in sought-after areas like Sydney’s Sutherland Shire – requires both strategic insight and savvy negotiation. Price guides set by sellers or agents can sometimes feel like moving targets. Properties are often advertised at prices lower than what they eventually sell for, leaving buyers bewildered and frustrated. In other cases, a home might be listed at a figure higher than what the market deems fair, causing confusion about its true value. For first home buyers trying to break into the market and for upgraders aiming for their “forever home” in the $2 million-plus range, mastering price guides and negotiation tactics is essential. It can mean the difference between securing your dream property at a fair price or missing out altogether.

Today’s real estate landscape is dynamic. Interest rates climbed to 4.1% by mid-2023 – the highest level in 11 years, and this has tempered buyer demand and borrowing capacity. Yet property prices in many areas have proven resilient. Sydney’s median house price was just shy of $1.7 million in early 2025, approaching record highs. Closer to home in the Sutherland Shire, the median house price sits around $1.56–$1.65 million and, after an annual increase of roughly 4% through 2024. These figures underscore the stakes – when prices are this high, even a small percentage negotiated off the asking price can save tens of thousands of dollars.

On the flip side, market shifts have introduced new opportunities: in some Sydney districts over the past year, more than half of listings have been selling below their asking prices. Being informed about such trends gives buyers an upper hand.

In this comprehensive guide, we’ll delve into how you can confidently navigate price guides and negotiate effectively when buying property in Australia. We draw on insights from My Property Pro’s team of expert buyer’s agents (including QPIA®-certified property advisors) and the latest market data to equip you with actionable strategies. From understanding why price guides often mislead, to leveraging current market conditions in your favor, to deciding whether to buy first or sell first when upgrading – we’ve got you covered.

Navigating Price Guides: From Underquoting to Real Value

A price guide is the advertised price or range that a seller (and their agent) provides as an indication of what they hope the property will sell for. In theory, it’s based on recent comparable sales and market conditions. In practice, price guides can be notoriously unreliable. Some agents employ underquoting – listing a property at a deceptively low figure to drum up buyer interest, only for the final sale price to soar well above that guide. Conversely, some sellers insist on listing at an aspirational high price against their agent’s advice, which can turn off buyers if it seems disconnected from reality.

So how can you, as a buyer, see through the smoke and mirrors of price guides and determine a property’s real value? The key is to combine due diligence with local expert advice. Here are some proven tips (expanded from our article How to Navigate Price Guides) to help you stay on target:

Do Your Research: Examine recent comparable sales for similar properties in the same area. This data is gold – it tells you what buyers have actually paid in the current market. Also, stay on top of market trends like whether prices are generally rising or cooling in the area . For example, if three comparable homes all sold for around $1.5M, a guide of $1.3M on a similar home should raise eyebrows.
Consult the Experts: Don’t go it alone. Engage with professionals such as buyer’s agents and property valuers. A seasoned buyer’s agent who knows the local market can provide invaluable insights and help you cut through vague or misleading guides. As the My Property Pro team notes, working with an expert “always results in a purchasing experience that is less stressful and gets the buyer a better result”. Likewise, a licensed valuer can offer an independent assessment of value (though keep in mind formal valuations often occur later in the loan process).
Set a Realistic Budget (with Buffer): Determine what you can comfortably afford before falling in love with a property. Stick to that budget. Importantly, include a buffer for the unexpected – whether that’s a higher-than-anticipated sale price or post-purchase costs like minor repairs. The idea is to avoid stretching yourself so thin that a slightly higher price or additional expense becomes a crisis.
Inspect Widely and Compare: Make it a mission to attend many open houses and inspections. Even if a particular home isn’t exactly what you want, each inspection sharpens your sense of the market. You’ll start recognizing which features or locations drive prices up. For instance, after seeing several sales, you might learn that a quiet street or water view consistently adds a premium. The more properties you see, the better you can gauge when a price guide is too low to be true or conversely, overly optimistic. (Keep in mind: a packed open house doesn’t always mean a bidding frenzy will ensue – underquoting can lure in many hopeful viewers who ultimately can’t afford the final price.)
Ask the Right Questions: Never hesitate to grill the selling agent politely. Ask them for the price guide (if not transparently advertised) and inquire about recent comparable sales that justify that guide. Savvy buyers also ask why the seller is selling and what terms the seller is looking for. The goal is to glean any insight that might help tailor your offer – for example, a seller who needs a quick settlement might value timing over a slightly higher price.
Manage Your Expectations: Finally, go in with eyes wide open. In competitive markets, it’s common for quality properties to sell above the quoted guide. That doesn’t mean you should give up; it means you should be mentally prepared and rely on the data. If you’ve done your homework, you’ll recognize a good-value deal when you see it, regardless of what the advertised guide says. And sometimes you’ll find the opposite – an overpriced listing that lingers on the market, indicating an opportunity to negotiate under the right circumstances.

By following these steps, you’ll be far better equipped to see through misleading price guides. Instead of anchoring on the seller’s number, you’ll have your own well-researched view of the property’s value. This confidence is crucial when it comes time to negotiate, because you can justify your offer (or your decision to walk away) with facts and recent sales evidence.

An Emerging Trend: Properties Selling Below the Guide Price

In the heated seller’s markets of years past, buyers grew accustomed to properties selling above their price guides – often well above. However, since late 2023 and into 2024, we’ve seen a new trend emerging: more properties actually selling below their initial guide prices. My Property Pro’s buyers’ agents described this shift in detail in Why More Properties Are Selling Below the Guide Price in Today’s Market – a phenomenon that was relatively rare in past years but is becoming more commonplace. In our own backyard, My Property Pro’s buyer’s agents have witnessed an “increasing number of properties selling for prices below their listed guide” over recent months. Additionally, guides are being lowered online numerous times before a property finally sells. This trend is prompting both buyers and sellers to rethink their strategies. We believe it is likely to last for the foreseeable future – at least until interest rates start to decrease or the cost of living softens.

This shift has important implications for buyers and sellers alike. What’s driving this phenomenon? Several key factors are at play:

Market Correction: After a period of rapid price growth (the kind we saw in 2021–early 2022), the market is undergoing a necessary catch-up correction. Many would-be buyers, struggling with affordability in their desired areas, have stepped back, leading to less competition for properties. Sellers may be finding it harder to attract offers at or above their initial expectations, resulting in lower sale prices to get deals done.
Higher Interest Rates & Affordability Pressures: The stagnation of interest rates at high levels has had a significant impact on buyer sentiment. Simply put, higher borrowing costs (and a higher cost of living in general) mean affordability is constrained, and people are willing or able to pay less overall for property. Buyers today are more conservative with their budgets, which naturally puts downward pressure on achievable sale prices.
Increased Supply (Stock Levels): A surge in available listings in some areas has given buyers more choice. With more properties on the market, buyers can afford to be patient and picky, which can drive down prices for homes that don’t meet all their criteria. This shift in the supply-demand dynamic often results in properties being sold below their original guide price, as sellers compete for limited buyer attention.

Opportunities for Buyers in a Softer Market

For buyers, these trends are something of a silver lining. Less competition and more realistic pricing can create genuine opportunities. If properties are selling below their guide, it suggests buyers have regained some negotiating power. You might be able to secure a home for a price that would have seemed like a bargain a year or two ago.

It’s an advantageous time to make offers – including on homes you might have thought were out of reach. In fact, if you’ve done your research on value (as discussed above), you may find sellers considering reasonable offers that come in under the initial guide, especially if their property has been on the market for a few weeks without strong interest. Just remember: a discounted price is only good if it’s the right property. Don’t let the allure of a “deal” lure you into buying something that doesn’t truly fit your needs or has hidden issues. Due diligence is still paramount. As our team likes to advise, focus on buying the right property for the right price in the current market, not just scoring a bargain for its own sake. Engaging a knowledgeable buyer’s agent can help in this regard – we often guide clients toward high-quality assets and advise against chasing a superficially cheap deal that could turn into a money pit.

It’s worth noting that this window of increased buyer leverage may not last forever. Market conditions are cyclical. If and when interest rates start to ease or economic confidence returns strongly, competition could heat up again. For now, though, buyers have a chance to negotiate without the frenzied fear-of-missing-out (FOMO) that defined the boom times.

How Sellers Should Adapt to the New Landscape

On the flip side, sellers need to adjust their strategy in a market where inflated price guides are meeting buyer resistance. If you’re selling, the number one rule is to be realistic. Price your property based on current market conditions, not yesterday’s peak. We’ve counseled many selling clients to resist the temptation of an over-optimistic agent quote. In fact, be wary of any selling agent who promises an unrealistically high price just to win your listing – insist they back up their appraisal with solid comparable sales data. The best agents will give you an honest price range and have a clear plan to market your property effectively at the right level.

If your home has been on the market and isn’t attracting offers, consider adjusting your expectations sooner rather than later. The data doesn’t lie – in some Sydney regions, the share of homes sold below asking price jumped by 17–18 percentage points in one year (for example, from ~33% to ~51% in the City & Inner South region from April 2023 to April 2024). That means what might have been a $1.5M sale in last year’s market could realistically be $1.35M–$1.4M today. Holding out stubbornly for last year’s price when buyers aren’t biting can lead to your property stagnating and ultimately selling for even less after months on market.

The good news is that a balanced market, where buyers can secure homes without overextending and sellers can still achieve fair value, is healthier in the long run. By aligning your price guide with market feedback, you actually increase your chances of a quicker sale. Often, the first few weeks of a campaign are when the best offers come in. If those offers are within the realm of reason, give them serious consideration. Missed opportunities can be costly. We’ve seen scenarios where sellers rejected strong early offers (say, $1.88M) only to accept a lower figure months later after the initially interested buyers moved on – a frustrating outcome that realistic pricing could have prevented.

Navigating Seller Expectations: Insights from a Buyer’s Agent

Even in a market trending towards balance, many sellers still hold firm to inflated price expectations. In our article Navigating Seller Expectations: Insights from a Buyer’s Agent, we noted how “many sellers are holding firm to inflated price expectations, often leading to missed opportunities for both parties”. This situation can be frustrating for buyers, especially when they present strong offers supported by market data, only to see those offers rejected.

My Property Pro’s Director and buyer’s agent, Elsja Hancock, has observed this scenario firsthand. One case in point involved a property where our clients initially offered $1.83 million – a figure supported by comparable sales. The seller’s agent informed us the owner wouldn’t accept anything below $1.9 million. Wanting the property, our clients increased their offer to $1.88 million, very close to the seller’s number. Instead of meeting us in the middle, the seller raised their asking price to $2 million mid-negotiation! This kind of goalpost-shifting move understandably soured the deal. Our clients made the decision to walk away, as $2M stretched beyond the value we saw in the home. The epilogue? About a week later, the agent came back to say the seller would now accept the $1.88M offer – but by that point our buyers had secured another property. The original listing did not sell at auction and remained on the market for some time, illustrating how unrealistic expectations can backfire.

Why do otherwise rational people become so fixated on getting an unrealistically high price? Several psychological and informational factors are usually at play:

Emotional Attachment: Sellers often have strong sentimental ties to their homes and may overvalue them as a result. It’s easy to see your own property as special or better than the rest – after all, it’s filled with your memories. This emotional investment can cloud judgment, leading owners to ignore market feedback.
Outdated Market Perceptions: Some sellers are influenced by last year’s market boom or a neighbor’s high sale, even if the climate has changed. They might also latch onto anecdotes of someone who “got a great price,” without considering differences in property features or timing. These misconceptions cause sellers to misjudge their property’s worth in the current market.
Fear of Regret (FOMO): The fear of accepting an offer that feels “too low” or selling too early can drive sellers to hold out longer than they should. No one wants to feel they left money on the table. Unfortunately, this regret aversion can lead to rejecting genuinely good offers, only to watch the property sell for less later.
Agent Influence: Real estate agents themselves can factor into this. Some agents, eager to please their client, may encourage holding out for a higher number (or might have originally quoted a high price to win the listing). Conversely, other agents try to talk sense into their clients when an offer is strong. In some cases, when a good agent urges acceptance of a fair offer, the seller might feel they’re being “pressured” or conditioned, when in fact the agent is trying to protect them from a worse result later. The dynamic between seller and agent can thus either inflate or temper a seller’s expectations.

From a buyer’s perspective, encountering an unrealistic seller is tough, but there are strategies to navigate this stalemate:

Be Informed and Stand Your Ground: Knowledge truly is power in negotiations. Come armed with recent sale print-outs, independent appraisals, and hard evidence to substantiate your offer. If a seller sees that all comparable homes in the area have been selling 5–10% below their asking prices, it might (eventually) chip away at their expectations. At the very least, you will know that your offer is reasonable. By presenting data, you shift the conversation from subjective “I think/you think” to objective facts.
Be Willing to Walk Away: Perhaps the hardest thing to do is also the most important. If a seller is unwilling to negotiate fairly, be prepared to move on to the next opportunity. It’s not easy when you’ve invested time and emotion into a property, but sometimes walking away is your best leverage. We’ve often found that a stalled negotiation will quickly revive when a seller realizes a serious buyer has exited. And if it doesn’t, you save yourself from overpaying out of stubbornness. As one of our satisfied clients noted, we “weren’t shy in giving honest feedback and advice (even if it meant walking away)” – and that restraint can save you both money and stress.
Maintain a Relationship: Even after a negotiation breaks down, it pays to keep the lines of communication open. Let the selling agent know that while you’ve stepped back, you remain interested if the seller has a change of heart. This doesn’t mean hovering; it means leaving the door open. We’ve seen situations where, weeks later, the agent calls back when the seller finally decides to consider more realistic offers. If you’ve been courteous and professional, you might get a second bite at the apple. By staying on the agent’s radar, you ensure you’re the first to know if the situation turns in your favor.

The bottom line is that you can’t force a stubborn seller to see reason, but you can protect your own interests. By remaining patient, objective, and ready to act when the time is right, you increase your odds of success. While navigating these complexities can be challenging, remember that not every property will have an intransigent owner. There are plenty of realistic sellers out there, and with good preparation, you’ll be able to spot the difference. In a market where some listings remain stagnant due to inflated expectations, patience and adaptability are indeed invaluable assets.

Buy First or Sell First? Strategize Your Move in Advance

For homeowners looking to upgrade – perhaps moving from an apartment to a house, or shifting to a more upscale neighborhood – there’s an extra layer of negotiation to master: the timing of selling your current property and buying the next.

The classic dilemma is “buy first or sell first?” The answer, however, is not one-size-fits-all and depends on multiple factors. Each approach has its own set of advantages and disadvantages, heavily influenced by market conditions, financial stability, and personal comfort with risk. Our in-depth article on this topic, Should You Buy or Sell First? Pros, Cons & Tips for a Smooth Property Transition, explores both strategies in detail. Here, we’ll summarize the key points to help you make an informed decision.

Let’s break it down into two scenarios:

Buying a New Home Before Selling Your Current One

Choosing to buy first means you secure your next home and then turn your attention to selling your old one. In a market like the Shire, where quality family homes can fetch well over $2 million, this approach can ensure you don’t miss out on your dream home while waiting to sell. However, you’ll need a solid game plan to mitigate the financial risks.

Pros of Buying First:

Seamless Transition: You can move directly from your current home into your new one without the inconvenience and cost of temporary accommodation. By purchasing a new home first, you avoid dual moving costs, storage fees, and the stress of potentially breaking a lease or bunking with family. (Beware: even when buying first, your buyer might not match your ideal settlement date, so always plan for a little overlap just in case.)
Less Pressure Finding the Right Home: This approach allows you to take your time finding the perfect new home without a firm deadline. You’re not scrambling to buy something just because you’ve sold your place. There’s no pressure of aligning sale and purchase dates precisely, which can reduce stress and lead to a better outcome.
Avoiding Being Priced Out: In a fast-rising market, buying first locks in today’s prices for your new home. If property values are climbing month-to-month, securing a home now could save you money compared to selling and then buying later at higher prices. (At the moment, late 2024/early 2025, the market is more balanced, so this is less of a concern – but it was a big factor during the 2021 boom.)

Cons of Buying First:

Financial Strain (Bridging Two Mortgages): If your current home doesn’t sell as quickly or as profitably as expected, you could end up juggling two mortgages for a time. This can be a serious financial burden. Not everyone can service two loans at once, so it requires careful financial vetting (and usually a friendly banker).
Need for a Bridging Loan: Without the proceeds from selling your current home, you might need a bridging loan or other interim financing to fund the new purchase. Bridging loans come with their own costs (interest and fees), which will eat into your budget. Essentially, you’re paying for convenience with added interest.
Pressure to Sell (Potentially for Less): The longer you hold two properties, the more pressure you’ll feel to sell the original one quickly. This urgency could lead to accepting a lower offer than you normally would, just to stop the financial bleed. There’s also the scenario where your current home’s sale price ends up being lower than anticipated, leaving you with a larger mortgage on the new house than you planned.

Negotiation Tip (Buy First): If you choose to buy first, negotiate a longer settlement on your purchase if possible. For example, a 90-day or even 120-day settlement on the new home can give you extra time to get your current property sold. During that window, prepare your home for sale and perhaps even list it while you’re in the process of closing on the new one. Coordinating with a buyer’s agent can help synchronize these timelines. Also, have a contingency plan: know how you’d manage financially if your home takes longer to sell (e.g. have savings or pre-approval for bridge financing in place).

Selling Your Current Home Before Buying a New One

Taking the sell first route means you put your current property on the market and secure a sale (or at least know exactly what your home will sell for), before you commit to purchasing a new property. This is generally a more conservative strategy that can de-risk the move, but it has its own challenges.

Pros of Selling First:

Know Your Budget Exactly: By selling your home first, you’ll know precisely how much cash you have available for the next purchase. This knowledge can guide your home search and give you confidence when making offers, since you won’t be guessing your budget. In softer market conditions, this is especially important so you don’t overestimate what your home is worth and then come up short for the next purchase.
No Need for Bridging Finance: With the proceeds (and equity) from your sale in hand, you likely can avoid costly interim financing. You won’t be paying interest on two loans simultaneously, which can save a lot of money and stress.
Reduced Financial Stress: Only carrying one mortgage (or none, if you’ve fully cashed out) means you’re not on the hook for two properties. This frees you up mentally and financially to house-hunt without a ticking clock. You can focus on finding a home that truly suits you, rather than worrying about an ever-approaching deadline or double mortgage payments.

Cons of Selling First:

Temporary Housing Dilemma: If you sell before buying, you may need to arrange temporary accommodation. That could mean renting for a period, moving in with relatives, or finding some short-term solution, all of which come with inconvenience and additional costs. Moving twice (out of your old home and then into your new one) can be exhausting and expensive.
Market Risk (Gap in Between): If the market is rising rapidly, there’s a risk you sell and then prices increase while you’re looking to buy. This price gap can mean you’re able to afford slightly less after waiting, essentially “selling low and buying high” if the timing goes against you. (During very volatile periods like the COVID boom, some sellers indeed found that by the time they re-entered the market, prices had sprinted ahead.)
Pressure to Find a Home: Knowing you’ve sold your current place can add pressure to buy quickly. If your sale settlement date is looming and you haven’t found the right home, you might feel compelled to settle for something that’s not ideal, or overpay just to secure a place to live. That urgency can be dangerous for decision-making – it’s how people end up in homes that aren’t a great fit, simply because of time pressure.

Negotiation Tip (Sell First): When selling first, try to negotiate a longer settlement on your sale or explore options like rent-back. For instance, if you can negotiate a 3-4 month settlement with your buyer, you give yourself a nice cushion to find a new home. In some cases, buyers (especially investors) might agree to let you rent your old home for a short period after settlement, giving you more time. Having a buyer’s agent can be a huge asset here – they can help line up your purchase swiftly once your sale is secured, and sometimes they can even find off-market opportunities or use creative terms to give you more flexibility.

Making the Choice: What’s Right for You?

Ultimately, the choice between buying first or selling first comes down to your personal circumstances and risk tolerance. Neither strategy is inherently “better” – each has trade-offs. To decide, consider:

Market Conditions: Is it a seller’s market or a buyer’s market? In a seller’s market (high demand, low supply), your current home is likely to sell quickly and at a good price, which makes buying first less risky (you can be reasonably confident your house will sell). In a buyer’s market (ample listings, slower sales), selling first is often the safer bet, since finding a buyer might take longer than finding a new home. Think about where things stand in your area (e.g., Sutherland Shire’s market has been rebounding with about a 4–5% annual price rise, but stock levels and days on market can vary).
Financial Buffer & Risk Tolerance: Take a close look at your finances and stress levels. Can you afford to carry two mortgages for a while if you buy first? Do you have access to a bridge loan or savings to cover a down payment before your sale completes? If you have a strong financial buffer and steady income, you might handle buying first comfortably. If not, selling first will help you sleep easier. This also ties into personality – some people are more comfortable with a bit of uncertainty than others.
Contingency Offers: While not very common in hot markets like Sydney, remember that there’s an option to make an offer on a new property contingent upon the sale of your current home. This can protect you from owning two houses at once. However, be aware that in competitive situations, sellers usually prefer clean, non-contingent offers. In fact, in Sydney’s fast-paced market, a “buy with a sale contingency” offer is unlikely to be accepted in many cases. Still, in a quieter market or with a very understanding seller, it could be a tool to discuss with your agent.

No matter which path you choose, careful planning and negotiation are key. Coordinating the sale and purchase timelines can feel like a high-wire act, but many people do it successfully each year. Lean on professionals – a good buyer’s agent can actually coordinate with selling agents and possibly even find your next home faster (or negotiate terms like extended settlements) to bridge the gap. The goal is to minimize any period of double housing costs or, conversely, any time you’re without a permanent home.

Conclusion: Negotiating Your Way to the Perfect Home

In the journey to home ownership (or the next home up the ladder), knowledge and strategy are your best allies. Mastering price guides means you won’t be misled by optimistic advertising – you’ll know what a property is really worth to you based on data and expert input. And by understanding current market trends, like the recent instances of homes selling below guides, you can adjust your approach to seize opportunities and avoid pitfalls.

Equally, becoming adept at negotiation means you’ll approach offers and counter-offers with confidence, whether you’re dealing with a stubborn seller or trying to line up the sale of your old house with the purchase of your new one. Remember that negotiation isn’t just about haggling over dollars – it’s also about terms, timing, and sometimes simply knowing when to walk away to protect your interests.

Throughout this process, don’t underestimate the value of having seasoned professionals in your corner. A skilled buyer’s agent can save you time, money, and headaches by handling the legwork, providing objective advice, and even bidding or negotiating on your behalf. My Property Pro’s team, for example, consists of degree-qualified agents, an auctioneer, a Qualified Property Investment Adviser (QPIA®), a former selling agent, a data analyst and a legislative specialist – a powerhouse of expertise under one roof, ready to assist. We have helped clients secure off-market deals and avoid costly mistakes; in some cases, our negotiation strategies even resulted in purchases under budget (one selling agent remarked that our team “know how to close the deal” and ended up scoring a property for our client below their max price at auction). Leveraging such expertise can give you a significant edge in the Sydney and Sutherland Shire property market, where local knowledge and negotiation skill translate directly into value.

In summary, buying property is a big undertaking, but with the right preparation and support, you can navigate price guides with a clear head and negotiate like a pro. Stay informed, stay patient, and stay focused on the end goal – the keys to that new home in your hand. With the market knowledge and tactics outlined in this guide, you’ll be well on your way to mastering the art of buying property in Australia.

Sources:

My Property Pro – How to Navigate Price Guides (July 25, 2024) mypropertypro.com.au
My Property Pro – Why More Properties Are Selling Below the Guide Price in Today’s Market (Oct 4, 2024) mypropertypro.com.au
My Property Pro – Navigating Seller Expectations: Insights from a Buyer’s Agent (Nov 4, 2024 ) mypropertypro.com.au
My Property Pro – Should You Buy or Sell First? Pros, Cons & Tips for a Smooth Property Transition (Sept 12, 2024) mypropertypro.com.au
Realestate.com.au – The areas where more homes are selling at a discount (May 3, 2024) realestate.com.au
Property Valuations NSW – Spotlight on the Sutherland Shire Property Market: Current Trends & 2025 Forecast (Oct 13, 2024) propertyvaluationsnsw.com.au
ABC News – Official interest rates rise above 4 per cent as RBA hikes again (Jun 6, 2023) abc.net.au
Australian Property Market: Price Recovery Gathers Pace – Forbes/PropertyUpdate (Mar 2025) propertyupdate.com.au
My Property Pro – Company website (“Why use a buyer’s agent?” page and testimonials) mypropertypro.com.au

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Mastering Price Guides & Negotiation When Buying in Sutherland Shire (2025)