Which Parts of Your Property Contract are Open to Negotiation?

We know that buying a property can sometimes feel like navigating a maze of technical terms and legal jargon. However, by learning more about what’s involved in the process, your journey to homeownership will be a lot more straightforward. And that’s where we come in!

One of the aspects that’s important to understand is what parts of your property contract can be negotiated. Knowing what you can and can’t negotiate on can help you secure the best deal possible for your new home.

Here are the seven things that can be negotiated on in your property contract: 

1. Purchase price

The purchase price of the property is generally the most flexible aspect of a property transaction.

Despite a listing price being advertised, in most cases, there will be room for negotiation based on factors such as current market conditions, how long the property has been on the market, and how quickly the seller is looking to move on the deal.

While you can and should negotiate on the property price to secure the best deal, be sure to do your research into things like comparable sales in the area so you can put forward a reasonable counteroffer.

2. Deposit size

The amount of deposit you’ll need to pay - as well as the payment terms - can also be open to discussion in property contracts.

While a standard deposit is typically around 10% - 20% of the purchase price, you might be able to negotiate a lower deposit if you’re not able to provide the full amount or if you are awaiting the sale of your current home. 

What’s more, the payment terms for your deposit - such as the timeframe for making the payment - can often be adjusted to suit your financial situation.

3. Settlement period

The settlement period refers to the time between signing the contract and completing the sale - and this can also be negotiated.

Typically ranging from 30 to 90 days, the length of the settlement period can be adjusted based on the needs of the buyer and seller. 

For example, you might request a longer settlement period to secure financing, or the seller might need a shorter period to relocate.

4. Inclusions and exclusions

The details of what’s included in the sale - such as appliances, light fixtures, and window treatments - can often be negotiated too.

If there’s something specific you’d ideally like to be left in the property, like the dishwasher or the garden shed, it’s worth discussing this before finalising the contract.

On the other hand, the seller may wish to take certain items with them, which will need to be made clear and agreed upon before the sale is completed.

5. Repairs and inspections

After reviewing the outcome of the building inspection, you might want to negotiate any repairs for issues identified in the building report.

This might range from minor fixes such as repairing a leaky tap, to more substantial concerns like structural damage.

Alternatively, you may want to negotiate a reduction in the sale price to cover the cost of necessary repairs.

6. Early possession or rent-back agreements

In some cases, a buyer may want to take possession of the property before the settlement is completed.

This is something that can be negotiated, as can rent-back agreements, where the seller remains in the property for a period after settlement, paying rent to the new owner.

Under the right circumstances, these kinds of arrangements can be beneficial for both the buyer and the seller.

7. Finance and conveyancing clauses

Finance clauses are important, as they protect buyers who need to secure a loan to purchase the property.

These clauses make the contract dependent upon the buyer obtaining financing by a certain date.

Similarly, conveyancing clauses allow for a legal review of the contract by the buyer's solicitor or conveyancer, giving them an opportunity to negotiate terms based on their advice.

When faced with a property contract, knowing exactly what you can negotiate on can give you a big advantage. 

By engaging in open and transparent discussions with the seller or their agent about the areas you’d like to negotiate on, you’re likely to score a better deal and enjoy a successful start to your new chapter as a homeowner.

Keen to get clued up on the home-buying process? Check out our other articles and stay in the know about all things home loans.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia.

‍Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

‍Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

‍There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.