Q & O: Your first home buyer questions answered

With Jordan Telfer and Brenton Potter

Melbourne’s property market has been subdued for much of 2026 – but one sector has remained consistently active. First home buyers have been the strongest segment of the market through the downturn, and with that activity has come a sharpened set of questions about how to navigate a market that doesn’t always behave the way the headlines suggest.

So it’s timely that Wakelin Advisors Jordan Telfer and Brenton Potter tackle real-world queries from first home buyers across Melbourne and beyond – each rooted in the kinds of dilemmas that matter most when you’re spending serious money for the first time.

Pre-auction offers: how to engage without overpaying or being dismissed

Jacob from North Melbourne asks: We want to make an offer before auction, but we’re worried we’ll either offend the vendor with a low number or overpay because we’ve panicked. How do we get pre-auction offers right?

Brenton: It starts with research. There’s no point making an offer if you don’t know what the property is worth. Whether that’s attending auctions, reviewing comparable sales data or educating yourself on the market for that property type – that’s the foundation of any negotiation.

Jordan: Exactly. Once you’ve got that baseline, you know your technical value and what the property is worth to you personally. In terms of where to pitch, don’t be shy about going in below the bottom of the quoted range – but not so far below that you’re dismissed as unserious. You want to pique interest and start a conversation, not shut one down. And bear in mind, making a pre-auction offer doesn’t always make sense. Sometimes the smarter move is to see the process through to auction day, where you may find less competition than expected. That decision depends on the level of interest, the method of sale and the specific circumstances.

When the agent says there’s strong interest and wants your best offer

Madison from Elwood asks: The agent tells us there’s a lot of interest in a property and asks for our best offer. How do we know if that’s genuine, and what should we actually be asking?

Jordan: The first thing I’d ask is: what’s the situation? Is this going to auction or is it a private sale? If it’s set for auction and the agent is inviting pre-auction offers, that actually contradicts the claim of strong interest. If there genuinely is a lot of interest, they’d take it to auction. If they’re fishing for an offer beforehand, that tells you something about the real level of competition. I’d put it back on the agent – if you’re looking to sell before auction, where does the vendor need to be?

Brenton: Ask whether any existing offer is on contract or just verbal. Ask whether the property is on the market at the level being discussed. The more of these questions the agent can’t answer confidently, the more it suggests the interest may not be as strong as presented. It’s about drawing out the real situation through good questions – and the answers will either confirm the position or reveal a contradiction.

Should you trust a vendor-provided building inspection?

Rosie from Yarraville asks: Many of the houses we’ve looked at have a building inspection report provided by the agent. Should we trust it, or get our own?

Jordan: This is particularly topical given the proposed reforms that would require vendors to provide building inspections as part of the campaign. In principle, it’s not a bad idea – it saves multiple buyers spending money on inspections for properties they don’t end up buying. But whoever pays the piper calls the tune to a degree. I’d always want to engage my own inspector. That said, the vendor’s report isn’t necessarily doctored – it may simply have been done by someone less thorough than your preferred inspector. Look at the report for big-ticket items. If there’s no reference to things you’d expect to see commentary on, that’s a flag.

Brenton: The key is making sure you’re comfortable and properly informed. You can’t rely on someone else’s report to cover everything. If you want certainty, engage the process yourself.

How honest should you be with agents about your budget?

Daniel from Torquay asks: We’ve been told not to reveal our maximum budget, but the agent keeps asking what we can afford. How honest should we actually be?

Brenton: It depends on the context. If you’re looking for off-market opportunities, you need to give agents enough of a guide that they put the right properties in front of you. A range works well – something like “between $600,000 and $800,000, depending on condition and what work is needed.” That’s giving enough without giving everything. If you’re at an open inspection and the agent asks your maximum budget, that’s more forward. I’d normally say something like “I’ve got interest within the range” and leave it there. Most agents will respect that.

Jordan: With off-markets, you’ve got to give to get. But pull back a little from the top end of your actual capacity, and qualify it – the top end is for something that’s completely ready to go, and the lower end reflects that you’re prepared to do some work. That’s honest enough to get good properties presented to you without handing over your negotiating position.

Is the buyer’s market narrative actually true for first home buyers?

Emily from Hawthorn asks: We keep hearing it’s a buyer’s market, but everything we like still seems to sell for more than we expected. Is the narrative actually true, or only for certain property types?

Jordan: It’s a great question, and the honest answer is that the buyer’s market narrative doesn’t apply uniformly. The market is fragmented. At the higher end, yes, it’s quieter – there’s less competition and more room to negotiate. But at the first home buyer end, good properties in good locations that are presented well and are livable without major work are still attracting healthy competition. Not shooting the lights out, but enough that if you’re expecting to walk in and dictate terms, you’ll be surprised.

Brenton: That’s what I’m seeing too. The set-and-forget properties – where the position is strong, the bathroom and kitchen will last another ten or fifteen years, and you can move straight in – they’re still drawing multiple interested parties. The confusion for first home buyers is that the general media says it’s a buyer’s market, and then they turn up to an auction and find two or three other bidders. The narrative is true for some property types, price points and locations – but not across the board.

How much should first home buyers compromise – and what’s non-negotiable?

Mackenzie from Aberfeldie asks: We’re told we just need to get into the market, but how much should we compromise, and what should we absolutely not compromise on?

Brenton: It starts with working out what matters most – is it the property type or the location? If you’ve got a fixed budget and you want a certain type of property, you may need to compromise on location. If you need to be in a particular area for schools or work, you may need to compromise on the property itself. Once you’ve got that clear, focus on compromising only on things that can be changed – condition, cosmetic finishes, the number of bedrooms if there’s potential to add one later.

Jordan: Don’t compromise on things you can’t change. Position, orientation, zoning – these are permanent. A dated kitchen can be renovated in a few years. A busy road or an industrial neighbour cannot. I liken it to a producer’s mixing board. You’ve got all these levels – budget, location, condition, size, outdoor space – and you’re adjusting each one until the balance is right. Maybe you can push the budget up slightly. Maybe you drop back one suburb. Maybe you accept a two-bedroom with land to add a third later instead of a three-bedroom in a compromised position. When all the levels are roughly in balance, you’ve found your property.

Take home message

First home buyers are navigating a market that looks easier from the outside than it often feels on the ground. The headlines say buyer’s market. The reality, for good properties at the entry level, is that competition still exists – it’s just more concentrated.

The buyers who succeed are the ones who do their research, ask the right questions, and understand where compromise makes sense and where it doesn’t. Get clear on your non-negotiables, stay patient, and don’t let the urgency to “just get in” override the discipline to get in well.

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