How buyers can succeed in a strengthening sellers’ market

When the property market heats up, buyers often find themselves in a tough spot. Stock levels drop, competition surges, and prices start moving upward faster than many people expect.

Our current Melbourne market feels like this right now, particularly in the sub-$950,000 segment of the market. The ‘affordable’ markets have been strengthening at pace since the start of the year, and our third rate cut of the year exacerbated things. The conditions have been further compounded since the Federal government announced that the First Homebuyer Deposit Scheme date will be brought forward to 1 October.

Some suburbs are exhibiting price growth of 10%+ since the start of the year, and for buyers who are tackling a purchase, this pace can feel very difficult to navigate. But the good news is, with strategy, preparation, and the right mindset, buyers can still succeed in a sellers’ market.

In my years as a buyer’s agent, I’ve helped clients purchase in some of the toughest market conditions — and I’ve also seen what traps buyers fall into when the pace of the market catches them off guard. Here are my best insights for navigating a hot, fast-moving market.

1. Preparation is Everything

When markets tighten, preparation becomes non-negotiable. Buyers who spend weeks “getting ready” after spotting a home they like are almost always outpaced by those who had their ducks in a row from day one.

That means having:

• Finance pre-approval — not just an online calculator.
• Clarity around your maximum budget so you’re not second-guessing when emotions run high.
• A clear brief of what you’re targeting in terms of location, property type, and non-negotiables.

I’ve seen too many buyers miss out because their finance wasn’t properly confirmed, or they hadn’t arranged the other pre-purchase steps. In a strengthening market, hesitation is costly.

2. Understand Value (Faster Than the Competition)

In fast-moving markets, comparable sales age quickly. A property that sold four weeks ago may already be underpriced compared to today’s conditions. Buyers who stick rigidly to outdated data can underestimate what a property will sell for and repeatedly miss out.

The best way to get sharp on value is to immerse yourself in auctions and private sales in your target suburbs. Track the results closely, adjust your expectations quickly, and factor in where the trend line is heading. This is where buyers who do their homework shine.

Searching for historical comparable sales will cost buyers an accurate understanding of the likely selling price. In Melbourne, we could rely on year-old sales in 2024. However, in 2025 we can’t rely on 5 week old sales in some markets.

In hot markets, buyers need to accept that new records will be set every weekend.

4. Be Auction-Ready

If you’re buying in Melbourne, (or any city where auctions dominate), buyers need to be comfortable with the format. Sellers lean towards auctions in hot markets because competition is visible, and momentum drives price.

Buyers who make a decision to avoid auctions miss out on some of the best properties.

Being “auction-ready” means more than just turning up on the day. It involves:

• Having your bidding strategy mapped out (will you go hard early, or sit back? Will you stand solo or with another person? Or will you outsource this important task?).
• Being ready for the psychological pressure that auctions bring.
• Setting a firm limit that has taken into consideration the tough competitive conditions that the auction could present.

Buyers often regret “saving a bit for later” when the hammer falls to someone else.

5. Move Decisively, But Not Recklessly

One of the hardest balances to strike in a hot market is between decisiveness and recklessness. Sellers know buyers feel the urgency, and that pressure can push people to stretch well beyond their comfort zone. For others, it may tempt the buyer to make too many compromises on the property they circle in on. Moving quickly shouldn’t spell purchasing a dud, or a property that doesn’t ideally suit their needds.

Successful buyers move quickly within their set parameters. They know the property fits their criteria, they’ve done their due diligence upfront, and they’re ready to act. They don’t dither when the agent calls to advise that another buyer has made an acceptable offer.

6. Avoid “Hopeful” Strategies and be Realistic

When markets are cool, buyers sometimes succeed with left-field tactics — like putting in a low-ball offer, dragging out negotiations, or assuming a vendor is desperate. In a strengthening sellers’ market, these approaches rarely work.

If you make an unrealistic offer in a hot market, you don’t just miss out — you risk losing credibility with the selling agent. Agents remember who wasted their time, and they’re far less likely to prioritise a difficult buyer when the next opportunity arises.

Being realistic is critical. Targeting updated and renovated properties will likely increase your competition levels and could cost you success at auction. Embracing properties with dated interiors may give a buyer a heightened chance of success when the market is surging. Provided the property condition is sound, the dated property will sell at a reduced price and will often attract less competing buyers.

7. Don’t Wait for “The Next One”

A classic mistake I see is buyers assuming that another perfect property will come along soon, at a similar price. We call this FOBBABO, (fear of buying before a better option). In strengthening conditions, the opposite often happens — the next property is more expensive, with more competition, and buyers almost always regret not securing the earlier one.

I always encourage buyers to look at each property on its own merits. If the property stacks up against their strategy and they’re in a position to buy, I recommend they act. Waiting for the “ideal” home in a hot market can be a costly approach.

8. Keep Perspective

Finally, buyers need to remember that buying property isn’t about “beating” the market. It’s about securing the right asset for their long-term goals.

They will pay more than they would have a year ago, and the pace may feel overwhelming. But if they secure a quality property in a strong location, they’ll look back in five or ten years and realise that buying sooner was a smart move.

Succeeding in a sellers’ market isn’t easy, but it’s far from impossible. Preparation, speed, and confidence in the strategy make all the difference. Falling into the trap of hesitation, unrealistic offers, or endless second-guessing costs time in this moving market.

The buyers who win in these tough, buyer’s market conditions are the ones who know their brief, understand value, and act with clarity and purpose.

By getting these foundations right, buyers will not only survive a hot market — they’ll thrive in it.