A private treaty sale occurs when a house is listed for sale with an asking price or price range and a potential purchaser presents an offer to the vendor through an agent. The vendor can decide whether or not to accept the offer.
Generally speaking, negotiations between the vendor and the purchaser, facilitated by the real estate agent, continue back and forth until a price is agreed upon. While the seller may have an end date in mind, unlike an auction, there is usually no deadline to sell the house. The property can be on the market for as long as it takes to get the vendor’s desired price.
This guide is designed to help buyers and sellers navigate private treaty negotiations with confidence. Learn the preparation that really counts, the levers beyond price and the key strategies to use when the agent returns with a counteroffer. You’ll also discover when a conditional or unconditional offer is right and how to steer clear of common pitfalls that can derail a deal.
Key takeaways
- Get ready to negotiate! Research local sales data, days on market and ensure your finance and deposit are ready.
- Set limits and know your walk-away point and acceptable concessions before negotiations begin.
- For buyers, make data-driven offers, put them in writing and set firm response deadlines.
- For sellers, price strategically, create urgency and adjust only one term at a time when responding to offers.
- Always maintain leverage by keeping multiple buyers engaged until contracts are signed.
- Negotiate settlement timing, deposit and conditions, not just price.
- Understand that an unconditional sale is an outright offer to purchase the property, with no conditions that could affect the sale.
- State laws differ on cooling-off and contracts; get legal guidance.
Quick refresher on the private treaty process
There are many ways to sell your property, whether that be an auction, a private treaty or expressions of interest.
With buying or selling a house privately, also known as a private treaty sale, you cannot see or get a sense of any other potential buyers like you would with an auction. However, this method is the preferred option for many due to the ability to negotiate.
The private treaty sale process follows as such:
- The seller sets an asking price/price range with their agent.
- Property is marketed (opens, photos, online/print).
- Buyer submits a written offer via the agent.
- Counteroffers go back and forth on price and terms.
- Contracts exchanged; deposit paid; cooling-off/settlement follow.
Want the full step-by-step process? See our Private Treaty Guide
Getting your foundation right before the negotiation
Before you negotiate or even engage in a private treaty deal, set your fundamentals. Clear goals, financial readiness, and a step-by-step plan will guide every move and keep you prepared throughout the process.
Researching the local market
Know your numbers. Review recent comparable sales, days on market and vendor discounting in the suburb to anchor realistic pricing and offers.
Finance and conditions
Be deal-ready: secure loan pre-approval, confirm your deposit and understand common Australian conditions (finance, building and pest, settlement timing).
Align on your walk-away numbers
Set your limits before you start engaging in a private treaty sale. Define your maximum (buyer) or minimum (seller) and the concessions you’re willing to trade and, most importantly, stick to them.
Negotiation tips for buyers
Make research a priority
The seller will usually list the property slightly higher than their desired price, anticipating some negotiation from potential house purchasers. Have a look at recent, comparable sales in the area so you can get an idea of what you really should be paying. For the purchaser, research can also include getting a better understanding of the vendor’s motivations. Why are they selling? Are they in a rush to sell because they have already purchased? As a buyer, always remember that the agent is working for the purchaser and will do everything in their power to get the best deal for their client.
Land on a realistic offer
When negotiating a price with a vendor, it is essential to decide on your top offer. Getting pre-approval is part of this step, and this will give you a sense of how high you can go and what you can comfortably afford, or what could stretch you to the limit. Determining your initial offer figure can be influenced by external factors. If there is a lot of interest in the property, it may be worthwhile going at the top end of your bracket to secure the property faster. A key thing to remember is that a low initial offer can leave room for competitors to outbid you.
Put every offer in writing
A serious buyer is deliberate in what they communicate and when, steering clear of vague behaviours such as mentioning prices when liaising with agents and vendors. When making an offer, be sure to include any terms you would like to negotiate on as well. This shows that you are really interested and prepared to reach an agreement.
Stick to your guns
You need to be prepared to revisit and adjust certain elements of the contract, which will likely include the price. But if there are some non-negotiables, stay strong. And always keep in mind your lowest dollar - what is the bottom offer you are willing to accept?
Negotiation tips for sellers
Price with intent
Set your price in partnership with your agent, using recent comparable sales, days on market and buyer demand. Aim for a realistic guide that invites enquiry and leaves sensible room to negotiate, without scaring buyers off.
Control the clock
Deadlines create urgency, prompt buyers to submit their best offer quickly, reduce uncertainty, shorten negotiations, and lower the risk of a deal falling through.
Negotiate and counter smartly
To keep negotiations clear and protect your position, change only one variable per counter to signal control and firmness. If you move on price, hold your ground on settlement and inclusions; if you accept a condition (for example, shorter finance), keep the price firm.
Maintain competition
Keep multiple buyers engaged until contracts are signed. This preserves leverage, reduces fall-through risk, and lets you compare full offers, price, terms, and timing. In this way, you can choose the best overall deal.
Unconditional versus conditional: what to consider
In a private treaty sale, there are two types of offers that can be made: conditional and unconditional.
Conditional offer: Your offer proceeds only if specified clauses are satisfied, commonly finance approval, sale of another property, or satisfactory building and pest inspection. If a condition isn’t met, the buyer can usually cancel without penalty. Once conditions are met, the contract must proceed - withdrawing may trigger penalties. Buyers should line up finance and inspections promptly.
Unconditional offer: A clean, no-conditions offer. After acceptance, the buyer is legally obliged to complete the purchase (state laws vary) or risk losing the deposit. Auctions are typically unconditional, but you can make an unconditional offer in a private house sale, too. These offers are often more attractive to vendors due to speed and certainty.
One helpful tip is to state a clear validity period for your offer to maintain momentum and reduce ambiguity. Consider independent legal advice for state-specific rules.
Succeeding with a private treaty sale with LJ Hooker
For many people, buying a property via private treaty is a preferred alternative to an auction. While there is usually always a degree of stress involved in buying and selling a property, a private treaty sale allows for greater negotiation opportunities for vendors and purchasers.
For vendors, sale by private treaty allows more time to consider offers from many prospective purchasers. For purchasers, there may be less stress involved because there is usually a cooling-off period, and you are less likely to be adversely influenced by an auction environment. This means you won’t make offers that are wildly beyond what you can afford - it is a much more controlled purchase.
And when you need a hand to hold, our team at LJ Hooker is always here to assist you. We offer you experience alongside excellent market knowledge that helps make the buying or selling process as smooth as possible. As one of Australia’s leading real estate brands, a little help from the team at LJ Hooker can be invaluable when it comes to buying or selling your home. Speak to an agent or book an appraisal today.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
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