In a fast-moving property market, asking the right questions can be the difference between buying smart and overpaying. Whether you’re a first-home buyer or a seasoned investor, these seven key questions will help you uncover hidden risks, identify actual value, and negotiate like a professional. If you’re wondering what questions to ask before buying property in Australia, this guide is for you.
You’ve just found your dream home in Sydney. You’re excited, ready to make an offer. Suddenly, the selling agent says: “Just so you know, there’s another buyer interested. You’ll need to act fast.”
Your heart races. Should you increase your offer?
Key Takeaways
- Asking the right questions before buying property in Australia helps identify risks and supports better negotiations.
- Buyers should inquire about the seller’s motivation, the property’s history, and any known issues.
- Signs of a phantom buyer include vague details, constant urgency, and unrealistic price hikes.
- To protect yourself, request written confirmation, research the market, and set a walk-away price.
- Hiring a Buyer’s Agent provides valuable market knowledge, negotiation support, and helps you avoid common pitfalls.
The truth is, sometimes that “other buyer” doesn’t exist. This is known as the phantom buyer trick, a pressure tactic that can catch unsuspecting buyers off guard. In this guide, MULLIGAN Buyers Agents explain how it works, the signs to watch for, and how to avoid paying more than you should.
Why Agents Use This Tactic
Not every agent does it, but the property scene in Sydney is competitive. Their goal is to achieve the best possible price for the seller. By suggesting extra demand, they create leverage.
Common reasons include:
- Maximising price for the vendor.
- Testing limits to see what you’re really willing to pay.
- Pushing a quick deal by making you believe you’ll miss out.
Remember: the selling agent represents the seller, not you.
Red Flags: How to Recognise a Phantom Buyer
Here are signs that an “other buyer” may not be real:
- Vague details — The agent won’t provide specifics.
- Constant urgency — You’re told repeatedly you must act “today.”
- Shifting stories — One day, there are multiple offers, the next, they’ve “fallen through.”
- No written proof — In NSW, offers should be documented.
- Unrealistic price hikes — Pressure to go well above comparable sales.
How Buyers Can Protect Themselves
The good news? You don’t have to fall for this tactic.
1. Ask for Written Confirmation
In NSW, all offers must be presented in writing. If the agent can’t show proof, be cautious.
2. Research the Market
Look at recent sales in the area. Don’t let an “imaginary offer” push you past fair value.
3. Take Your Time
This trick thrives on panic. Slow down and don’t let emotions drive your decision.
4. Set a Walk-Away Price
Decide your maximum budget before negotiations. If pressure pushes past that, walk away.
5. Use a Buyers Agent
Working with MULLIGAN Buyers Agents means having an advocate on your side. We cut through sales tactics, keep negotiations grounded, and ensure you pay a fair price.
Why a Buyers Agent Helps
Selling agents negotiate daily—they’re skilled at it. Buyers often aren’t. Without experience, it’s easy to feel outplayed.
By engaging an experienced buyer’s agent, you gain:
- Market knowledge — Clear understanding of property value.
- Negotiation support — Objective representation during discussions.
- Protection — Spotting when tactics like phantom buyers are used.
- Confidence — Peace of mind knowing you’re not overpaying.
Frequently Asked Questions About the Phantom Buyer Trick
Is this tactic legal in Sydney?
It’s unethical but difficult to prove unless laws are broken. Always ask for written proof; it helps uncover risks and gives you negotiating power.
What should I do if I suspect a phantom buyer?
Stay calm, don’t rush your decision, and request confirmation in writing.
Can phantom buyers be used at auctions?
Not during the auction itself, but agents may use the idea of “strong interest” beforehand.
Can a buyers agent really prevent this?’
Yes. They spot pressure tactics quickly and negotiate based on facts, not fear.
Final Thoughts
The phantom buyer trick is an old tactic in the Sydney real estate market. By inventing competition, some agents push buyers into rushed decisions and inflated offers.
But when you know the signs, you can take control. With clear research, a solid plan, and professional support, you’ll avoid paying more than necessary.
At MULLIGAN Buyers Agents, we help buyers navigate the market with confidence, shielding them from manipulation and securing properties at the right price.
Book a Call With One of Our Experts
Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.
