Offering 12% below asking on a Sydney townhouse — sensible or too aggressive?

[loft.balanced]

We’re considering a Sydney townhouse listed at A$615,600. It has been available for 104 days and needs updating. Nearby asking prices are similar, but I can’t find enough completed sales to establish where buyers are actually settling.

Would opening roughly 12% below asking—about A$542,000—be sensible? Our financing is solid and we can be flexible on completion. I’d like to explain the figure without insulting the seller. I’m also reluctant to waive inspection or finance protection, and I’m unsure how to handle repair credits, a low valuation, the response deadline and potential deposit exposure.

 

[route.bright]

The number itself is not insulting if the offer is presented calmly. Base it on the condition, the limited completed-sales evidence and the certainty you can offer, rather than saying the property is overpriced. Include financing evidence if you have it, offer a useful completion window and set a reasonable expiry.

I would keep building/pest inspection and finance conditions. Also decide now whether a low lender valuation means you walk away or fund the gap, because “solid financing” does not necessarily remove valuation risk.

 

[scanThePorch]

I wouldn’t lean too heavily on the 104 days. It may indicate weak demand, but it could also reflect an earlier deal falling over or a seller who simply won’t move. Has the asking price changed, and do you know why they are selling?

Also, is the updating purely cosmetic? Before discussing repair credits, I’d want the inspection findings and, if applicable, a careful look at the townhouse’s strata information and upcoming costs.

 

[talia_plans]

A precise A$541,728 offer may look formula-driven, so I’d round it and attach only a short explanation. Let the seller counter rather than arguing every renovation item upfront.

I’d also prefer a lower price over repair credits unless the inspection uncovers something specific. Keep the deposit arrangements and release conditions aligned with the written contract; those details can vary, so have the conveyancer or solicitor handling the Sydney purchase explain your exposure before signing.