You’ve been through the open home twice. You’ve measured the second bedroom for the cot. Then the agent rings and says, “There’s a lot of interest, so if you’re keen, now’s the time.” That is usually the moment buyers realise nobody ever explained how to make an offer on a house in NSW. Do you just say a number? Does it have to be in writing? Can you take it back if the building report comes in ugly?
We sit on the buyer’s side of these conversations all the time on the Central Coast. Here is how the offer process really works when a home is sold by private treaty, what belongs in your offer, and where we see people lose money or lose the house.
An accepted offer is not a sale, and that cuts both ways
In NSW, an offer to the selling agent is not legally binding on anyone, whether you make it verbally or in writing. The seller can say yes to you and keep talking to other buyers. You can change your mind too. Nothing is locked in until contracts are exchanged: both sides sign matching copies of the contract, the copies are swapped, and your deposit is paid.
That gap between “offer accepted” and exchange is where a lot of heartbreak happens. A higher offer can turn up on day three and the seller is free to take it. It’s why we push to exchange as fast as the paperwork safely allows, and it’s the whole subject of our guide to how gazumping happens in NSW and how to protect yourself.
The agent may also ask for a small holding deposit, sometimes called an expression of interest deposit, to show you’re serious. Under NSW rules that money is refundable if you don’t go ahead before exchange, and paying it does not take the property off the market.
Do the homework before you name a number
Get the contract early. The agent has to have a contract of sale ready before the home is marketed, so ask for it at the first inspection and send it straight to your conveyancer or solicitor. On the Coast we always read the section 10.7 planning certificate in that contract closely. It is where flood, bushfire and coastal hazard notations show up, and plenty of lakeside and beachside streets carry at least one of them.
Know your ceiling. Have finance pre-approval in place and work out your true limit once stamp duty, legal fees and inspection costs come off the top.
Price it on sold evidence, not the price guide. Look at what genuinely similar homes have sold for recently, in the same pocket. On the Coast a few streets can be a different market altogether. A home with a lake view in Long Jetty and a similar one a few blocks back are not comparable sales, however close they look on a map.
Inspect, or plan to. A building and pest report either before you offer or during the cooling-off period tells you what you’re really paying for. Older fibro and weatherboard cottages, which are common around the Coast, can hide timber pest damage and moisture problems that change what the place is worth.
What actually goes in the offer
Price is the headline, but agents and sellers weigh the whole package. A slightly lower offer with clean terms regularly beats a higher one full of ifs. Your offer should cover:
- The price, as one firm figure rather than a range
- The deposit you’ll pay at exchange
- Your preferred settlement period, and whether you can flex it
- Any conditions, such as finance approval or a satisfactory building and pest report
- Inclusions you’re assuming, like the pool equipment, the shed or the dishwasher
- How long the offer stays open
Settlement timing is the term buyers most often underrate. A seller who has already bought elsewhere might value a quick settlement. An older owner downsizing out of the family home might want a long one. Ask the agent what matters to the seller before you write anything. They won’t always say, but often they will.
Say it on the phone, then put it in writing
Most offers start with a phone call to the agent, and that’s fine. Follow it up the same day with a short email so there is no confusion about what you offered. Agents are obliged to pass every offer on to the seller, and a written one is much harder to misremember or play down.
It doesn’t need to be fancy. Something like this does the job:
“Further to our call, we’d like to offer [price] for [address]. We can pay a deposit of [amount] on exchange and would like a settlement of [period], though we are flexible. Our offer is subject to a satisfactory building and pest inspection during the cooling-off period. We have finance pre-approval and our solicitor has reviewed the contract. This offer is open until [day and time].”
That wording tells the seller your finance is real and your legal work is already moving, which counts for more than people expect.
Opening low rarely saves what people think it will
Everyone wants to leave room to move, and that’s sensible. The trouble starts when the first offer is so far under the market that the seller stops taking you seriously. Some sellers will simply wait for another buyer rather than negotiate up from a figure they found insulting.
A better approach is an opening offer you can justify with sold evidence, then a clear reason for every step up. If the building report turns up a roof that needs replacing or a deck that won’t pass inspection, get a written quote and use it. Specific costs move sellers. Vague complaints don’t.
When several buyers are circling, agents often call for “best and final” offers by a set time. At that point there may be no second round, so your number has to be the one you could live with losing on. Holding your nerve, reading the agent and knowing when to stop is the part of buying most people find hardest, and it’s exactly what our buyer-side property negotiation service handles for you.
Conditions protect you, but every one costs a little leverage
In NSW private treaty sales, buyers usually get a cooling-off period after exchange. That is the window most people use to finish their building and pest inspection and confirm finance, instead of writing a long list of special conditions into the contract. If you pull out during cooling-off you lose a small part of the price, not your whole deposit. Our plain-English guide to the NSW cooling-off period sets out exactly how it works.
Some buyers make their offer stronger by agreeing to exchange without a cooling-off period, using a section 66W certificate signed by their solicitor. Sellers like it because the deal is certain sooner. It is only safe once your inspections are done, your finance is formally approved and your solicitor is happy with the contract. We’ve seen buyers waive cooling-off in a rush to beat another offer and then find a problem they could no longer walk away from.
One more catch: none of this applies at auction. If the home is going under the hammer, or you make an offer before auction day, expect to exchange on unconditional terms.
What happens after the seller says yes
Once your price is accepted, your conveyancer or solicitor and the seller’s side settle any final changes to the contract. You sign your copy, the seller signs theirs, they are exchanged and you pay the deposit. If you have a cooling-off period, it starts then. When it ends, the sale is binding and the clock runs down to settlement, when the balance is paid and you get the keys.
Until exchange, stay in regular contact with the agent. Quiet buyers are easy to gazump.
Common questions about making an offer in NSW
What is a normal deposit when making an offer on a house?
You don’t usually pay the full deposit when you make the offer. You might pay a small, refundable holding deposit to the agent, then the full deposit when contracts are exchanged. The contract sets the deposit as a percentage of the price, and a smaller deposit can often be negotiated, particularly if you’re buying with a low deposit loan. Agree it before exchange, not on the day.
Can a seller pull out after accepting an offer?
Yes, until contracts are exchanged. An accepted offer in NSW is not binding, so the seller can accept a higher offer or change their mind. After exchange, the seller is bound by the contract. That’s why moving quickly to exchange matters so much in a competitive market.
Should I offer below the asking price?
Only if the sold evidence supports it. Some homes are listed above what the market will pay and an offer below the asking price is perfectly reasonable. Others are priced to draw a crowd, and offering under will just take you out of the running. Comparable recent sales in the same streets are a better guide than the number on the listing.
Is there a rule of thumb for how much to offer in Australia?
Not one that works reliably. Fixed rules like taking a set amount off the asking price ignore how the home was priced, how long it has been listed and how many other buyers are interested. Work out what the property is worth to the market and what it is worth to you, then offer within that range.
Do I need a special form or template to make an offer in NSW?
No. There is no official offer form for private treaty sales. A clear email to the agent setting out your price, deposit, settlement period, conditions and deadline is enough. What makes it binding is the exchange of contracts later, not the offer itself.
Want someone in your corner for the offer?
We’re a flat fee buyers agency on the Central Coast working only for buyers, homebuyers and investors alike. If you’ve found a place and want help pricing it, writing the offer and handling the back and forth with the agent, have a look at how our negotiation support for Central Coast buyers works and get in touch before you make that call.
