How to Make an Offer on a Property in NSW

Updated: November 2026

Making an offer on a property is a significant step. Before naming a price, check that the property fits your budget, home loan position and purchase requirements.

In New South Wales, an accepted offer does not generally complete the purchase. The transaction usually becomes binding when contracts are exchanged, subject to any cooling-off rights and conditions in the contract.

The selling agent represents the seller. Have the contract reviewed by your solicitor or licensed conveyancer and confirm your finance position before making an unconditional commitment.

If you are preparing to purchase your first property, our First Home Buyer home loan service explains how CBM Mortgages can help you assess your budget, borrowing capacity and suitable home loan options.

Making an offer on a property at a glance

Step 1: Confirm your buying budget

Your budget should include more than the proposed purchase price.

Before making an offer, review:

• your available deposit;
• estimated borrowing capacity;
• comfortable monthly repayments;
• transfer duty where applicable;
• conveyancing or legal fees;
• building and pest inspections;
• strata-report costs where relevant;
• loan, valuation and settlement fees where applicable;
• Lenders Mortgage Insurance where applicable;
• council rates, water and strata adjustments;
• moving expenses;
• initial repairs or furnishings; and
• the financial buffer that will remain after settlement.

The maximum amount a lender may approve is not necessarily the amount you should offer. Your budget should allow for possible changes in interest rates, income and household expenses.

Review our guide to the upfront costs of buying your first home in Sydney when calculating your available funds.

Step 2: Check your home loan position

Home loan pre-approval or conditional approval can provide an indication of the amount a lender may be prepared to provide, subject to its conditions.

Before relying on it, confirm:

• the approved amount;
• the expiry date;
• which documents and financial details were assessed;
• whether a credit assessor reviewed the application;
• any outstanding approval conditions;
• the acceptable property types and locations;
• the maximum LVR;
• whether a government scheme or family guarantee applies; and
• whether your financial circumstances have changed.

Pre-approval is not unconditional approval. The lender must still assess the selected property, valuation, contract and any remaining credit conditions.

Read our guide to the home loan approval process from pre-approval to settlement.

Step 3: Request the contract for sale

Ask the selling agent for the contract as early as possible.

The contract may contain important information and conditions relating to:

• the legal description of the property;
• title and registered interests;
• inclusions and exclusions;
• the proposed settlement period;
• the contract deposit;
• zoning and planning information;
• easements, covenants or restrictions;
• special conditions;
• vacant possession or existing tenancies;
• adjustments for rates and levies;
• cooling-off rights; and
• default or termination provisions.

Your solicitor or licensed conveyancer can review the contract, explain the legal effect of its terms and request appropriate amendments through the seller’s legal representative.

The selling agent cannot provide independent legal advice to the buyer.

The NSW Government contracts and deposits guide explains contract exchange, deposits and cooling-off rules.

Step 4: Complete the appropriate property checks

The appropriate investigations depend on the property type, condition and contract.

House or townhouse checks

Potential checks may include:

• building inspection;
• pest inspection;
• survey or identification report;
• title and planning searches;
• flood, bushfire or contamination information;
• unapproved building work;
• drainage or structural concerns; and
• insurance availability.

Apartment and strata checks

A strata report may provide information about:

• administrative and capital-works funds;
• regular strata levies;
• special levies;
• building defects;
• insurance;
• recent meeting minutes;
• disputes or legal proceedings;
• planned major works;
• by-laws; and
• the proportion of owner-occupiers and investors where recorded.

A lender valuation does not replace a building, pest or strata inspection. The valuation is primarily prepared for the lender’s security assessment.

Step 5: Research the property and recent sales

Research recent sales of comparable properties rather than relying solely on the advertised guide.

Useful comparisons generally consider:

• location and street position;
• property and land size;
• number of bedrooms, bathrooms and parking spaces;
• condition and renovations;
• floor level and aspect for apartments;
• title and strata characteristics;
• sale date;
• development potential; and
• unusual features or defects.

A property advertised at a particular price is not guaranteed to sell at that figure.

The NSW Government guide to making an offer recommends researching comparable sales and treating the advertised price as a guide.

Step 6: Decide your maximum offer

Set your maximum purchase price before negotiations begin.

The maximum should account for:

• your approved or likely home loan amount;
• the lender’s possible valuation;
• the deposit and purchase costs;
• required repairs or renovations;
• your repayment comfort level;
• the financial buffer remaining after settlement; and
• the property’s value to you compared with available alternatives.

Avoid increasing the offer simply because another buyer is interested. The seller’s preferred price does not change your borrowing capacity or repayment comfort.

Step 7: Decide what conditions to request

An offer can include more than a price.

Depending on the property, sale method and legal advice, proposed terms may address:

• a finance condition;
• a building and pest condition;
• a strata-report condition;
• contract amendments;
• the contract-deposit amount;
• the settlement period;
• included fixtures or items;
• access before settlement;
• vacant possession;
• an extended cooling-off period; or
• another condition recommended by the buyer’s solicitor or conveyancer.

The seller may accept, reject or negotiate any proposed condition. Obtain legal advice about the wording and protection provided before relying on a condition.

Should an offer be subject to finance?

A finance condition may provide time to obtain formal home loan approval before the purchase becomes unconditional, depending on the contract wording.

A finance clause may specify:

• the lender or type of finance;
• the amount required;
• the approval deadline;
• the steps the buyer must take;
• how notice must be given; and
• what happens if finance is not approved.

A poorly drafted or short finance condition may provide limited protection. Have the clause reviewed by your solicitor or licensed conveyancer.

Read our guide to buying property subject to finance.

Step 8: Submit the offer

An offer may be made verbally or in writing. A written offer creates a clearer record of the price and proposed terms.

A written offer may include:

• the buyer’s full name;
• the property address;
• the proposed purchase price;
• the proposed settlement period;
• requested contract changes or conditions;
• the proposed contract deposit;
• the offer’s expiry time, if appropriate;
• the buyer’s solicitor or conveyancer details; and
• confirmation that the offer remains subject to contract.

Do not reveal sensitive financial information unnecessarily. The selling agent needs the offer terms, but generally does not need access to personal bank statements or detailed home loan documents.

Is an accepted offer legally binding?

In a standard NSW private-treaty sale, an accepted offer is generally not the final binding contract. The seller or buyer may still change their position before exchange, subject to the circumstances and legal advice.

The purchase generally becomes binding when signed contracts are exchanged, subject to any cooling-off rights and contractual conditions.

This creates a risk commonly described as gazumping, where the seller accepts another offer before contracts are exchanged.

To reduce avoidable delay:

• have the contract reviewed early;
• keep finance documents current;
• notify your broker promptly;
• complete inspections quickly;
• agree requested contract changes through the legal representatives; and
• be ready to sign once appropriate advice and checks are complete.

Do not waive legal or finance safeguards solely to prevent another buyer from proceeding.

Holding deposits and contract deposits

A selling agent may request a holding deposit or evidence of the buyer’s intention to proceed. The amount and treatment can vary.

A holding deposit should not be confused with the contract deposit payable at exchange.

The contract deposit is commonly 10% of the purchase price, but a different amount may be negotiated and recorded in the contract.

Before transferring money, confirm:

• the amount requested;
• who will hold the money;
• whether the payment is refundable;
• whether it forms part of the contract deposit;
• the verified account details;
• the receipt and payment record; and
• the advice of your solicitor or conveyancer.

Verify trust-account details using a known telephone number before transferring funds. Property transactions can be targeted by payment-redirection fraud.

Step 9: Notify your broker or lender

Once an offer is accepted, provide the contract and property details promptly.

The lender may need to:

• arrange or assess a property valuation;
• confirm the property is acceptable security;
• reassess the final home loan amount;
• verify updated income or financial documents;
• confirm LMI, a government scheme or guarantee;
• check the source of the deposit;
• confirm funds to complete; and
• issue formal or unconditional approval.

An accepted offer does not guarantee that the lender will value the property at the purchase price.

Step 10: Exchange contracts

Contract exchange generally occurs after the buyer and seller sign their respective copies and the contracts are exchanged.

At exchange, the buyer will ordinarily pay the agreed contract deposit and become bound by the contract, subject to any cooling-off rights and contractual conditions.

Before exchange, confirm with your solicitor or conveyancer:

• the final price and contract terms;
• the deposit required;
• whether a cooling-off period applies;
• any finance, inspection or other conditions;
• the settlement date;
• the inclusions and exclusions;
• the legal consequences of default; and
• whether formal loan approval has been obtained or is still outstanding.

Cooling-off periods in NSW

For many residential private-treaty purchases in NSW, the buyer receives a five-business-day cooling-off period after exchange.

Off-the-plan residential contracts generally have a ten-business-day cooling-off period.

The rules and contract can alter the position. A cooling-off period generally does not apply:

• when purchasing at auction;
• when exchanging on the same day after an auction at which the property was passed in; or
• when the buyer waives the cooling-off period using a section 66W certificate.

A buyer who validly withdraws during the ordinary cooling-off period generally forfeits 0.25% of the purchase price to the seller.

Cooling-off rights and withdrawal notices are legal matters. Obtain advice from your solicitor or licensed conveyancer rather than relying on the agent or a general guide.

What is a section 66W certificate?

A section 66W certificate is used to waive the NSW cooling-off period.

The certificate must be signed by an eligible legal practitioner or licensed conveyancer who has explained the effect of waiving the cooling-off rights.

Once contracts are exchanged without a cooling-off period, the buyer may be immediately bound by the contract.

Before waiving the cooling-off period, buyers should ordinarily ensure that:

• the contract has been reviewed;
• appropriate property checks have been completed;
• the finance position has been confirmed;
• the lender is likely to accept the property;
• the deposit is available; and
• the legal and financial consequences are understood.

Buying at auction

Purchasing at auction differs from a private-treaty negotiation.

In NSW, an auction purchase generally has no cooling-off period. The successful bidder is expected to sign the contract and pay the required deposit.

Before bidding:

• have the contract reviewed;
• complete appropriate building, pest or strata checks;
• confirm your finance position;
• check the required deposit and payment method;
• understand the settlement period;
• set a firm bidding limit;
• confirm the lender is likely to accept the property type; and
• understand that pre-approval is not a guarantee of final approval.

Do not bid on behalf of another person without understanding the auction and identification requirements.

What if the lender values the property below the offer?

A lender may use a value below the purchase price when calculating the home loan and LVR.

This may mean the buyer needs to:

• contribute additional funds;
• reduce the home loan amount;
• pay a higher LMI premium;
• change the loan structure;
• seek a valuation review where appropriate;
• consider another lender, noting the delay and uncertainty; or
• reconsider the purchase, subject to the contract and legal advice.

A low valuation does not automatically entitle a buyer to withdraw from an unconditional contract.

Step 11: Prepare for settlement

After exchange, the lender and legal representatives prepare for settlement.

The buyer may need to:

• satisfy all remaining lender conditions;
• sign and return loan and mortgage documents;
• provide evidence of building insurance;
• transfer funds required to complete;
• complete identity verification;
• review the settlement statement;
• arrange the final inspection;
• confirm transfer-duty or concession arrangements;
• avoid new credit or material financial changes; and
• confirm settlement and key collection arrangements.

The settlement period is negotiated and stated in the contract. Do not assume every NSW purchase will use the same settlement timeframe.

Offer checklist

1. Confirm the total buying budget.
2. Check that pre-approval and financial documents remain current.
3. Request the contract for sale.
4. Have the contract reviewed by a solicitor or licensed conveyancer.
5. Complete suitable building, pest or strata investigations.
6. Research recent comparable sales.
7. Set a maximum price and do not exceed it.
8. Decide the proposed conditions and settlement period.
9. Submit a clear written offer.
10. Notify your broker or lender promptly after acceptance.
11. Confirm valuation and formal approval requirements.
12. Exchange only after receiving appropriate legal and finance guidance.

How CBM Mortgages can help

CBM Mortgages can help you understand the lending steps surrounding an offer and property purchase.

We can help you:

• estimate borrowing capacity and repayments;
• review your deposit and funds to complete;
• compare suitable lenders and home loan products;
• prepare for pre-approval;
• check whether the proposed property type may create lending issues;
• submit the property details for valuation and assessment;
• work through outstanding approval conditions;
• coordinate the lender requirements before settlement; and
• work with your solicitor or conveyancer through the finance process.

CBM Mortgages does not provide legal, valuation, building or pest advice. Obtain appropriate independent advice before making an unconditional commitment.

Preparing to make an offer? Visit our First Home Buyer home loan service or contact CBM Mortgages to discuss your budget, pre-approval and home loan position.

Frequently asked questions

Disclaimer: This article provides general information only and does not constitute personal financial, legal, tax, property or credit advice. Contract terms, cooling-off rights, lender policies and NSW laws can change. Obtain advice appropriate to your circumstances before making an offer or signing a contract.