How do I avoid being gazumped?
You avoid being gazumped by closing the gap between having your offer accepted and having contracts exchanged, since nothing is binding in NSW until exchange happens. That means having finance pre-approved, a solicitor already engaged, and your deposit ready to go before you make an offer. The faster you can move to exchange, the less time there is for another buyer to step in.
The Fuller Picture
Gazumping happens because, in NSW, nothing about a property sale is legally binding until contracts are exchanged. A verbal agreement, a handshake, or an agent telling you "you've got it" carries no legal weight. Right up until exchange, the vendor is free to accept a better offer from someone else, even after telling you the property is yours. Avoiding gazumping isn't about outsmarting anyone — it's about shortening the window between acceptance and exchange as much as possible.
This is where it gets more complicated. Private treaty sales carry the most exposure, because there's no single moment (like the fall of the auctioneer's hammer) that locks in a result. Agents aren't required to stop marketing a property or take it off the market just because you've had a verbal yes, and multiple buyers can be circling the same property without knowing it. Delays on the vendor's side — a slow solicitor, an overseas vendor, or a vendor waiting to see if a better offer turns up — all extend the risk window.
NSW doesn't have specific anti-gazumping laws, unlike some other states that have trialled reforms in this area. What NSW does have is the standard cooling-off period (five business days for most residential purchases) and the option of a Section 66W certificate, which lets a buyer waive that cooling-off period. Vendors are often more willing to exchange quickly with a buyer who's ready to sign a 66W, because it gives them certainty the deal won't unwind in the next five days.
What This Means for Your Purchase
In practice, speed and preparation matter more than how much you're offering. A buyer who can exchange within a day of having an offer accepted is in a far stronger position than a buyer offering more money but needing a week to sort finance or find a solicitor. Doing that groundwork — pre-approval, a conveyancer on standby, deposit funds accessible — before you're seriously inspecting properties is what actually protects you.
Every day that passes between a verbal yes and signed, exchanged contracts is a day the property stays exposed. The vendor might get a higher offer, get cold feet, or simply keep talking to other interested buyers, and none of that is unusual or improper on their part under NSW law. That's uncomfortable for buyers, but understanding it changes how you approach the whole process — you push for exchange, not just for a verbal agreement.
There's a real financial and legal trade-off here too. Signing a 66W certificate to exchange faster means giving up your five-day cooling-off right, so it should only be used once your finance is sorted and any building and pest inspection is done. Using it just to beat another buyer, before you've actually checked the property is sound, swaps gazumping risk for a different and potentially bigger risk.
How This Shows Up in the Illawarra
Most entry-level and mid-market sales across Wollongong, Shellharbour, and Dapto are private treaty rather than auction, which is exactly the setting where gazumping is most likely. In sought-after coastal and escarpment-adjacent pockets — Thirroul, Austinmer, Bulli, and parts of Corrimal — a well-priced property can attract several interested buyers within days of listing, and agents will keep taking offers until contracts are actually exchanged, regardless of what's been said verbally.
In these tighter markets, buyers who've done the finance and legal groundwork ahead of time are the ones who end up exchanging first, even when they weren't the first to see the property. Buyers who are still sorting pre-approval or finding a conveyancer after their offer is verbally accepted are the ones most likely to lose a property to a faster-moving buyer, particularly over a weekend when agents are fielding multiple enquiries at once.
Frequently Asked Questions
Can I ask the vendor to take the property off the market once my offer is accepted?
You can ask, but there's no legal obligation for the agent or vendor to agree, and it isn't enforceable. The only real protection is moving to exchange as quickly as possible.
Does "under offer" mean the property is sold?
No. "Under offer" is a marketing status, not a legal one. The property isn't sold until contracts are exchanged, and agents can still show it or accept other offers up to that point.
Am I more at risk of being gazumped as a first home buyer?
You can be, mainly because first home buyers are often still finalising finance or engaging a conveyancer for the first time when they make an offer, which slows down exchange. Doing that groundwork early removes most of the extra risk.
How fast can contracts realistically be exchanged in NSW?
If both parties are prepared, exchange can happen within a day or two of an offer being accepted. Delays usually come from finance not being sorted, a solicitor needing time to review the contract, or the vendor's side being slow.
Should I offer more money to avoid being gazumped?
Not necessarily. A higher offer doesn't remove the risk if you're still slow to exchange. Being ready to move quickly is usually more effective than paying more and still taking a week to get to exchange.
Does a buyers agent help prevent gazumping?
Yes, largely by managing the process and timeline — coordinating your finance, solicitor, and inspections in advance so there's no delay once an offer is accepted, and pushing for a fast exchange on your behalf.
If you want help moving fast enough to avoid losing a property to a late offer, get in touch and we can talk through your situation. We work alongside buyers through the whole process, not just at the offer stage.
