Firstly I do not believe in low balling. Offering a % below what a property is advertised at is a sign that you don’t know what the value of the property is? I live mainly in Sydney and for investment generally only buy acreages in Sydney NW for land banking purposes. I saw a property advertised mid last year which was in an area that suited and contacted them, it was zoned to be developed but was landlocked with no services, so was not ready to go and had a creek running through the centre. The agent didn’t seem too interested in telling me the price but after a few calls it was $5.5 million. A different agent advertised the same property for auction some weeks ago. I rang and they said it’s auction and they expect close to $4 million. Last week out of the blue, I get a call from the agent that the vendor has revised his reserve to the mid to high $3. I said too high and did not go to the auction. After the auction, the agent rang to say the reserve envelope was $3.5 million. Today I did my homework on what the square metre value of each zoned piece of the parcel was worth, based on recent sales. It totalled $2.6. I deducted an amount for the fear in the current investment market due to CV. I gave this information to the agent without any BS and offered $2.4. A few hours later I was advised that my offer was accepted. This is not a brag. This is simply saying that you don’t upset people by making lowball offers. You do your homework by calculating the value of the property using comparables and GIVE it to the agent to show the vendor as proof that you are serious. I didn’t buy the bargain of the year but in 3-5 years time, it certainly will be.