Buying your first home in 2025 means mastering negotiation in a market where timing, confidence, and preparation all matter. In this webinar, we break down the top negotiation tips first home buyers need to understand before making an offer, from spotting genuine opportunities to knowing when to walk away.
Why Negotiation Matters in the 2025 Market
Learning how to negotiate is one of the most important skills a first home buyer can build. As Mike and Adam explained, most Kiwis suddenly find themselves expected to know how to go from “not owning a home” to “owning one” without ever being taught what the steps look like.
Negotiation sits right at the centre of that process. Even when you’re pre-approved and ready to buy, knowing how to approach a vendor, frame an offer, and identify whether a property is actually worth its price can be the difference between securing a strong deal and overpaying. For first home buyers in the 2025 market, where interest rates are softening and high-quality stock is selling fast, good negotiation timing has become more crucial than ever.
The team emphasised that negotiation doesn’t start with the offer – it starts with preparation. That means defining your goals, knowing the market, understanding what similar homes are selling for, and being clear about your walk-away points before you ever engage with a real estate agent.
How to Spot Negotiation Opportunities
For first home buyers in the 2025 market, spotting negotiation opportunities early can create a significant advantage.
Mike and Adam highlighted several moments where buyers have the most leverage:
Old Listings
If a listing has been sitting for a long time, vendors often reconsider their expectations. In a slower market, nervousness kicks in and that’s where negotiation opportunities appear.
New Releases in Developments
Developers often want early sales to build momentum. These first releases can present strong negotiation windows, especially for buyers who can move quickly or offer clean terms.
End-of-Development Discounts
The last few units of a development are often the most heavily discounted. Developers want to close out the project, repay lending, and move on which means buyers can benefit from sharper pricing, cashback incentives, or more flexible settlement terms.
Identifying Overpriced Stock
Your research becomes valuable here. If you know a listing is priced too high for the area, you can present market evidence to support your offer. Vendors particularly owner-occupiers who aren’t experts may be more receptive than expected.
Understanding Market Saturation
In areas where a large number of similar homes are available, vendors must compete harder. This creates room for negotiation, even on higher-quality homes.
The message was clear: in the 2025 market, timing and knowledge create leverage.
What to Say... And What Not to Say
Negotiation isn’t just about the number you offer. It’s how you present it.
Mike and Adam explained several key rules for first home buyers:
Lead With Facts, Not Feelings
Kiwis tend to take negotiation personally. If you go in too low without justification, vendors can feel insulted and disengage entirely.
Instead, bring:
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Recent comparable sales
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Evidence of market shifts
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Details on similar listings
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Insight into last sale price
This positions you as a serious buyer, not a bargain hunter.
Make Real, Written Offers
Verbal offers almost always favour the agent. A written offer forces the vendor to emotionally process a real number sitting in front of them.
Present a Clean Narrative
If the agent doesn’t understand why your offer is reasonable, they can’t communicate it to the vendor. Without context, you’re just a number on a page.
Don’t Lowball Blindly
Agents stop taking serial lowballers seriously. Over-negotiating can cause you to miss out on great deals that were already priced sharply.
Use the Good Cop / Bad Cop Strategy
If buying with a partner, or with support from an adviser, pressure can be directed through one party while the other remains friendly. Vendors respond better when they feel one person is collaborative – even if the other isn’t.
Hidden Costs, Due Diligence & Deal Breakers
Due Diligence Clauses Are Powerful
A 10-day due diligence clause gives buyers space to:
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Inspect the home
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Review documentation
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Identify hidden costs
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Walk away if necessary
This is especially important when vendors or agents make unrealistic promises about what the home might sell for.
Never Go Unconditional Without Seeing the Property
Even strong marketing photos can disguise issues. Whether it’s layout, construction quality, or unadvertised limitations (like a carpark that doesn’t fit your car), viewing early protects you from overcommitting.
Deposit Flexibility Can Influence Price
Sometimes vendors prioritise:
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Higher deposits
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Lower deposits
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Faster settlements
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Longer settlements
Buyers can use this to their advantage – negotiating on terms when price movement is limited.
Non-Price Clauses Can Be Game-Changers
Furniture, cashbacks, upgrades, appliances – even unusual requests (like a replacement car) – can be negotiated when the vendor values a clean sale.
When to Walk Away, Push Harder, or Say Yes
When to Walk Away
- Vendor won’t budge meaningfully
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Due diligence reveals issues that affect long-term value
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Terms or timelines don’t align with your limits
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Your non-negotiables aren’t met
When to Push Harder
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Vendor is dropping price with each counter
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Property has been sitting for a long time
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Evidence clearly supports a lower valuation
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Developer timing (start or end of project) aligns in your favour
When to Say Yes
This is where many first home buyers make mistakes.
If the property:
then it’s often time to accept the deal, rather than chasing an extra $5,000 on a home that will gain hundreds of thousands over time.
As Mike put it: “Just try to take the emotion out of it.”
Key Takeaways
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Negotiation is a core skill for first home buyers entering the 2025 market.
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Preparation: research, parameters, and clear goals – drives better negotiation outcomes.
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Old listings, development timing, and market saturation all create strong buying opportunities.
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Lead with facts, provide context, and avoid blind lowballing.
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Due diligence protects buyers from hidden costs and overcommitments.
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Terms (like settlement dates and deposits) can be just as negotiable as price.
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Know when to walk away – but also when to stop negotiating and say yes.
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Acting quickly on a good property can be the difference between securing or losing it.
Next Steps:
If you’re ready to understand what you can borrow or want expert support negotiating your first home, the Lighthouse Property team can guide you through your exact options.
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
