Buyer’s guide  ·  NSW

How to make an offer on a property in NSW

Thinking of making an offer on a property in NSW? Here is how to prepare, how offers work, when a sale becomes binding and how the cooling-off period can help.

Found a place you love? Knowing how to make an offer on a property can help you secure it without taking on risks you don’t need.

This guide covers what to do before you make an offer in NSW, how offers work, and what happens once your offer is accepted.

Updated October 2026 to reflect current law.

Get your finances in order

Before you make an offer, know exactly how much you can afford.

• Get pre-approval. A lender or mortgage broker can tell you how much you can borrow. Pre-approval also shows the seller you’re a serious buyer. Remember that pre-approval is not a final loan approval.
• Consider a mortgage broker. A good broker knows what different lenders require. Brokers are usually paid by the lender, so ask how they’re paid. If you don’t have one, we can suggest brokers we work with. We don’t receive any payment for referrals.
• Budget for the extra costs. These include transfer duty (stamp duty), registration fees, legal or conveyancing fees, inspections, lender costs and moving costs. First home buyers may get help. See our guide to NSW first home buyer grants and schemes.
• Plan your deposit. A deposit is usually 10% of the price, but some sellers accept less. A deposit bond may be an option.

Research the market before you make an offer

A good offer is based on facts, not just the price guide.

• Look at recent sales of similar properties in the area. Property websites list recent sold prices.
• Don’t rely too much on the price guide. NSW law bans underquoting, which is when an agent falsely advertises a lower price. But a property can still sell well above the guide without any underquoting.
• Watch local trends. Interest rates, new infrastructure and nearby developments can all affect prices.

If you’d like help with research or negotiation, a buyer’s agent may be useful. We can suggest buyer’s agents we work with, again with no referral payment.

Do your due diligence first

Ideally, finish your checks before you make an offer. This helps you avoid nasty surprises.

• Get the contract reviewed. The contract is legally binding once exchanged. Your solicitor or conveyancer will check the special conditions and flag anything unusual.
• Book a building and pest inspection. It can reveal structural problems or pests that aren’t obvious at an open home. Read why in our guide to building inspections.
• Order a strata report if you’re buying a unit or townhouse.
• Check the council and planning documents attached to the contract.

How to make an offer on a property in NSW

Most private sales in NSW work like this:

1. Make your offer to the agent. You can make it verbally or in writing. A written offer, such as an email, gives you a clear record.
2. Include your key terms. State your price, the deposit, the settlement period and any conditions, such as finance or a building inspection.
3. Negotiate. The agent must pass all offers to the seller until contracts are exchanged.
4. Agree on a price. The agent then sends the contract to your solicitor or conveyancer.
5. Exchange contracts. The sale is binding once signed contracts are exchanged and the deposit is paid.

The agent may ask for an expression of interest deposit. According to the NSW Government, this deposit is refundable, and it doesn’t take the property off the market.

Buying at auction is different. There is no cooling-off period, and the contract is binding when the hammer falls. Read our auction buyer guide before bidding.

Is an accepted offer binding in NSW?

No. In NSW, an accepted offer is not legally binding until contracts are exchanged. Until then, the seller can accept a higher offer. This is called gazumping. You can also change your mind.

That’s why it pays to move quickly once your offer is accepted. Our guide to gazumping in NSW explains how to reduce the risk.

Signing before your checks are done: the cooling-off option

In a busy market, you may feel pressure to sign quickly. Here’s how that can play out.

Example: John finds his dream home at a Saturday open. Another couple loves it too. John makes an offer, agrees a price and signs the contract straight away. The contracts are exchanged that afternoon.

Because it’s a private sale, John has a cooling-off period. It starts on exchange and ends at 5pm on the fifth business day after the day of exchange. During that time, his lawyer reviews the contract and he arranges inspections. If he finds a problem, he can cancel the contract by written notice before the deadline.

The catch is the cost. If John cancels during cooling-off, he forfeits 0.25% of the purchase price. On a $1,000,000 home, that’s $2,500.

This approach can work if you accept that cost. But the safer path is to finish your checks before you exchange. Read our full guide to the cooling-off period in NSW, including when it doesn’t apply.

Sometimes a seller asks you to give up cooling-off with a section 66W certificate. Only do this once your due diligence and finance are complete, and after your lawyer has explained the effect.

Frequently asked questions

This article is general information only and is not legal advice. It reflects NSW law at the date of publication. Please contact us for advice about your circumstances.

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