How to Make an Offer on a House

The process of buying a house can be thrilling but also nerve-wracking, especially for first-time buyers navigating Australia’s competitive real estate market. If you’re planning to buy property in Sydney or NSW, understanding the essentials of making an offer is critical. When done correctly, a well-prepared offer increases your chances of securing your dream home while protecting you legally and financially. 

This step-by-step guide will walk you through the process and help demystify how to make a real estate offer. Whether you’re a first-time buyer or a seasoned homeowner, these insights are tailored for the 2025 real estate landscape. 

What Does Making an Offer on a House Mean? 

At its core, “making an offer” involves formally expressing your intention to purchase a property, including key details like the price, deposit, settlement terms, and any special conditions. This offer can be made verbally or in writing; however, written offers are always preferred for clarity and credibility. 

Once submitted, the selling agent communicates your offer to the property owner, who can then accept, reject, or counter it. Remember, even if the seller verbally accepts your offer, it only becomes legally binding once contracts are signed, exchanged, and the deposit has been paid. 

Why does this process matter? 

• Legal and financial protection
• Transparent communication with the seller
• Demonstrates you’re a serious buyer
• Strengthens your position in negotiations

Now, let’s look at the specific steps you need to follow to make a successful offer. 

Step 1. Prepare Before Making an Offer 

Preparation is everything when it comes to crafting a competitive and legally sound offer. Here’s how to get started. 

Research the Property and Market 

Understanding the market and property value is critical. Investigate recent sales in the area to gauge whether the asking price is fair. Use tools like Realestate.com.au to compare similar properties. 

Key factors to consider include: 

• Comparable sales in the neighborhood
• The property’s condition and unique features
• Current market trends (e.g., is it a buyer’s or seller’s market?)

Secure Finance Pre-Approval 

Pre-approval from a lender determines your buying budget and reassures the seller that you’re financially prepared. While not a guarantee for funding, it provides clarity and speeds up the process once your offer is accepted. 

For private purchases, note that your bank might assess the property to ensure it matches the loan amount. 

Review the Contract of Sale 

Ask the selling agent for the contract of sale and have it carefully reviewed by a solicitor or conveyancer. This important step ensures you fully understand the terms, inclusions, and any potential red flags that could affect the purchase. A legal professional can help explain complex clauses, ensure the contract complies with legal requirements, and identify any issues, such as zoning restrictions, easements, or hidden costs, that could impact your decision to proceed. They can also assist in negotiating more favorable terms where necessary, giving you greater confidence and peace of mind before committing to the purchase. Taking the time to review the contract thoroughly can save you from unexpected surprises later on.

Step 2. Decide on Offer Details 

A strong real estate offer goes beyond the price; it should include terms that appeal to the seller while protecting your interests. 

Offer Price 

Your offer price will depend on your research and the current market. It can be: 

• Below asking price in a buyer’s market or if the property has issues.
• At asking price for competitive yet reasonable negotiations.
• Above asking price in competitive (seller’s market) conditions to stand out.

Deposit Amount 

Deposits in NSW are typically 10% of the property price, though in some cases, this amount can be negotiated to a lower percentage. The deposit serves as a significant upfront commitment, showing the seller that you are serious about purchasing the property. It’s important to have the deposit ready to pay as it can secure your position in a competitive market.

Settlement Period 

The standard settlement period in NSW is 42 days (or six weeks), during which the legal and financial processes are completed to transfer ownership of the property. However, there is often room for flexibility, which can make your offer more appealing to sellers. For instance, a shorter settlement period may be attractive to sellers with unoccupied properties or those eager to finalize the sale quickly. On the other hand, a longer settlement period might appeal to vendors who need additional time to arrange their own next steps, such as finding and moving into a new property. Discussing these timelines with your conveyancer or solicitor can help ensure the settlement period works for both you and the seller.

Conditions of the Offer 

Adding conditions protects you during the transaction. Common conditions include: 

• Subject to finance approval
• Subject to building and pest inspections
• Subject to legal contract review

While conditions can safeguard you, be aware that fewer conditions often make an offer more attractive to sellers. 

Step 3. Submit Your Written Offer 

Always put your offer in writing to ensure clarity and professionalism. Most offers are submitted via email to the selling agent and should include the following details: 

• Offer price
• Deposit amount
• Settlement period
• Any specific conditions

Pro Tip: Adding a brief, polite note about your enthusiasm for the property can set you apart from other buyers. Additionally, including a personal check for the deposit can demonstrate good faith. 

Step 4. Prepare for Negotiation 

Negotiation is a natural part of the offer process. The property owner may accept, reject, or counter your offer with revised terms. 

When negotiating: 

• Stay flexible, especially if the seller proposes minor adjustments to conditions.
• Consult with your solicitor or buyer’s agent to ensure fairness and a legally sound agreement.
• Stay firm when necessary but remain polite and professional to maintain a constructive relationship.

If negotiations are successful, move forward with the next steps; if not, don’t hesitate to reassess and consider other opportunities. 

Step 5. Finalize the Legal Steps 

An offer isn’t legally binding until contracts are signed, exchanged, and the deposit is paid. This step formalizes the sale and protects both you and the seller. 

Key notes for NSW buyers in 2025:

• Cooling-off period: Private sales allow for a five-business-day cooling-off period post-contract exchange. This provides an opportunity to withdraw, though there’s usually a penalty of 0.25% of the property price.
• No cooling-off for auctions: Be cautious when bidding at auctions as there’s no cooling-off period.

Additional Tips for a Successful Offer 

Tailor Your Offer 

Customizing settlement terms, deposit amounts, and conditions to match the seller’s preferences can give you a significant advantage in a competitive property market. By tailoring your offer to align with what the seller values most, you can stand out from other buyers, even if your bid isn’t the highest. 

Understand the Seller’s Needs 

Take the time to communicate with the selling agent to understand what the seller prioritizes. For example, some sellers may prefer a shorter settlement period to finalize the sale quickly, while others might prioritize fewer conditions, like waiving a building inspection, over the highest price. Building rapport and understanding their goals can help you craft an offer that appeals directly to them. 

Seek Professional Guidance 

Navigating the buying process can be complex, so enlisting the help of experienced professionals is a crucial step in improving your chances of success. Solicitors and conveyancers can ensure that your legal interests are protected, while buyer’s agents can provide strategic advice and help you negotiate effectively. These experts not only offer peace of mind but also give you a competitive edge during negotiations, ensuring your offer is both appealing and legally sound.

Moving Towards Success 

Making an offer on a house is a multi-step process that requires preparation, research, and strategic thinking. Thoroughly understanding market conditions, crafting a competitive offer, and maintaining clear communication with all parties can dramatically improve your chances of securing your dream home. 

Buying a property in 2025, especially in Sydney or NSW, may seem complex, but with the right guidance, it becomes a manageable and rewarding experience. Lean into the expertise of professionals when needed, and don’t hesitate to adjust your approach if negotiations don’t go as planned. 

Are you ready to make your dream home a reality? Start your property search on platforms like Realestate.com.au and connect with legal professionals to breathe life into your plans. 

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FAQs about making an offer on house