Most buyers decide how much to offer based on two things: the price guide and how much they want the property. Neither is a good basis for spending a million dollars.

Having spent seven years on the selling side, I can tell you the price guide is a marketing tool. It’s set to generate enquiry and get bodies through the door. It is not the vendor’s expectation, and it’s rarely the price the property will sell for. So the first thing to do is put it aside entirely.

Start with comparable sales. Not the ones the agent shows you, the ones you find yourself. Look for sales in the last three to six months, in the same suburb, of similar land size, similar build era and similar condition. Three good comparables tell you more than the price guide ever will. Pay attention to what actually sold, not what’s currently listed; asking prices tell you what vendors hope for, sold prices tell you what buyers paid.

Then adjust for the property itself. A comparable on a busy road, or with a smaller block, or without a second living area, isn’t a match. It’s a starting point. Add or subtract for the differences. This is where local knowledge earns its keep: two streets 400 metres apart in the same suburb can carry a $100,000 gap that no data feed will show you.

Assess the competition honestly. How many groups were at the open? Did people linger or leave quickly? Has the agent called you back, or are you chasing them? A property with genuine competition needs a different strategy to one that’s been sitting for five weeks. Selling agents read these signals constantly; buyers rarely do.

Do the due diligence before you’re emotionally committed. Strata reports, building and pest inspections, the contract of sale, zoning, flood overlays, planned developments nearby. Every one of these can move the value, or take the property off your list. Doing them after you’ve fallen in love with the kitchen means you’ll rationalise whatever they find.

Set your walk-away number before the negotiation starts. Write it down. The most expensive mistakes I’ve seen buyers make were made in the final ten minutes of an auction or a “best and final” round, when the number that seemed crazy an hour ago suddenly feels reasonable.

If you do these five things, you’ll walk into the negotiation knowing what the property is worth, which is the only real advantage a buyer can have.

Sagoo & Co. represents buyers across the Hills District and Western Sydney.