How do I make an offer on a house in NSW?
In NSW, making an offer on a private treaty property is done through the selling agent, either verbally or in writing. The offer isn't legally binding until both parties sign contracts and exchange. Until then, you can negotiate back and forth, include conditions, and adjust your offer as needed.
The Fuller Picture
When a property is for sale by private treaty, you submit your offer through the selling agent — verbally, by phone, or in writing. The agent is legally required to present all offers to the vendor, regardless of the amount. Most agents will ask for your offer price and any conditions you want to include, such as subject to finance, building and pest inspection, or a preferred settlement period.
Your offer does not become a binding contract until both you and the vendor sign the contracts and exchange. Until exchange, either party can walk away without penalty. This means a vendor can accept your offer in principle and then accept a higher offer from someone else — a practice known as gazumping, which is legal in NSW. It also means you can make an offer while continuing to look at other properties, though most buyers prefer to move quickly once they find the right home.
Some properties are sold by expression of interest (EOI), where buyers submit written offers by a set deadline. This process is more structured than a standard private treaty offer, but the same principle applies — nothing is binding until exchange. If you are buying at auction, the process is entirely different: a successful bid becomes a binding contract immediately, with no cooling-off period, and you must pay your deposit on the day.
What This Means for Your Purchase
Because offers are not legally binding before exchange, moving from accepted offer to exchanged contracts as quickly as possible is the safest approach. The longer the gap, the greater the risk of another buyer entering the picture. Most experienced buyers have their solicitor or conveyancer review the contract before they make an offer, so they are ready to exchange within days if the offer is accepted.
Including conditions in your offer — such as finance or building and pest — gives you protection but can make your offer less attractive to a vendor who wants certainty. In a competitive market, vendors often favour offers with fewer conditions or a faster settlement. If you have solid pre-approval and confidence in the property's condition, you may consider making an unconditional offer to strengthen your position. That is a meaningful decision and should only be made when you are genuinely certain about your finance and have done your due diligence.
The offer price itself is a negotiation. Asking for a reduction supported by recent comparable sales, proposing a settlement timeline that suits the vendor, or offering a quick exchange can all improve your position beyond the headline number. Vendors respond to a package that suits their circumstances, not just the highest price — and understanding what matters to them can give you an edge.
How This Shows Up in the Illawarra
In the Illawarra, the split between auction and private treaty shifts by suburb. Coastal pockets like Thirroul, Austinmer, and Bulli tend to see more auctions, particularly when the market is active. Further south through Shellharbour and into the Shoalhaven, private treaty is more common, which means the offer-and-negotiate process is central to most purchases. Getting comfortable with how to structure and submit an offer is practical preparation for buying across most of this region.
Local agents in the Illawarra will sometimes push buyers to drop the finance clause if they sense competition, or signal that a vendor will take less than the asking price if a property has been sitting. Knowing when to act quickly, when to hold firm, and how to respond to those signals takes experience. If you are unsure how to approach an offer on a specific property — especially if you are unfamiliar with the area or the process — getting independent advice before you submit is time well spent.
Frequently Asked Questions
Does my offer have to be in writing?
No. Verbal offers are common and agents are legally required to pass them on to the vendor. However, putting your offer in writing — email is fine — confirms the terms clearly and gives you a record of what was agreed.
Can the agent reveal my offer to other buyers?
An agent cannot legally disclose your offer price to another buyer to encourage a higher bid. This is prohibited under NSW fair trading rules. They can, however, inform buyers that offers are being received without stating the amounts.
Should I start with a low offer?
Not necessarily. If a property is priced competitively and there is genuine interest, starting too low can cause the vendor to disengage entirely. Starting at a level you can justify with comparable sales — and adjusting from there — is usually more effective than anchoring low and trying to move up.
How quickly do I need to move after my offer is accepted?
There is no fixed legal deadline to exchange after an offer is accepted, but speed matters. Vendors may continue to receive enquiries until contracts are exchanged. Having your solicitor and lender ready in advance means you can exchange within a few days of acceptance.
What happens if two buyers make the same offer?
The vendor can choose either offer, or ask both buyers to submit their best and final price. There is no requirement to favour either buyer — the vendor and their agent have complete discretion.
Can a buyers agent help when making an offer?
Yes. A buyers agent can research comparable sales to help you price your offer accurately, advise on which conditions to include, negotiate on your behalf, and keep the process moving toward exchange. In a competitive market, that experience often makes the difference between securing the property and losing it.
If you're ready to make an offer on a property in the Illawarra and want to make sure you get it right, reach out to us. We work exclusively on the buyer's side, so our advice is always aimed at getting you the best outcome.
