How to Make an Offer on a House in Australia

Quick Answer

To make an offer on a house in Australia, you submit a written offer to the selling agent that includes your proposed price, any conditions (such as finance or building inspection), and your preferred settlement timeframe. The vendor can accept, reject or counter your offer. Once both parties sign a contract and exchange, the sale is legally binding.

How to Make an Offer: Step by Step

Making an offer on a property is both a legal and strategic process. Understanding how it works gives you more confidence and better outcomes.

Step 1: Do Your Research First

Before you offer anything, understand the market. Look at recent comparable sales in the suburb — similar properties, similar size, sold in the last three to six months. This tells you what the property is actually worth, not what the agent says it's worth.

Days on market matters too. A property that has been listed for 60 days has a different negotiating dynamic to one that listed last week.

Step 2: Get Your Finance Ready

Make sure you have pre-approval from your lender before making any offer. Without it, you are not in a genuine buying position — and vendors and agents know it. Pre-approval tells the vendor you can actually complete the purchase.

Step 3: Request the Contract of Sale

Ask the selling agent for the contract of sale before making an offer. Your conveyancer should review it to identify any unusual conditions, easements, caveats or other issues that might affect your offer price or decision to proceed.

Step 4: Submit Your Written Offer

Offers in Australia are typically made in writing, either via a formal offer document or by requesting the agent prepare a contract at your nominated price. Your offer should include:

Purchase price: Your opening figure, based on comparable sales
Deposit amount: Typically 5–10% of the purchase price, paid at exchange
Settlement timeframe: How many days from exchange you want until settlement
Conditions: Finance approval, building and pest inspection, or other relevant clauses
Validity period: How long your offer is open (typically 24–48 hours)

Step 5: Negotiate

The vendor will either accept your offer, reject it outright or come back with a counter-offer. Negotiation is normal and expected. Stay calm, refer back to your comparable sales data, and do not let urgency pressure you into overpaying.

If there are multiple offers on the same property, the agent may run a "best and final" round where each buyer submits their highest offer simultaneously. In this case, your research becomes even more important.

Step 6: Exchange Contracts

Once both parties agree on price and conditions, your conveyancer will arrange exchange of contracts. Both buyer and vendor sign identical copies of the contract, which are then "exchanged" — creating a legally binding agreement.

In most states, a cooling-off period applies after exchange (except at auction). This gives you a window to withdraw, though financial penalties may apply.

What Conditions Should You Include?

Conditions protect you. The most common are:

Finance condition: Allows you to withdraw if your lender does not approve finance by a specified date. Essential unless you are a cash buyer or have unconditional approval.

Building and pest inspection condition: Allows you to withdraw if a professional inspection reveals serious structural or pest issues. Strongly recommended for all purchases.

Due diligence condition: Sometimes used to give you a set period to complete all your checks before becoming unconditional.

Conditions make your offer slightly less attractive to a vendor than an unconditional offer. In a competitive market, you may need to weigh the protection they offer against the risk of losing the property.

What Deposit Do You Pay at Exchange?

The deposit is typically 5–10% of the purchase price. It is paid at exchange and held in the agent's trust account until settlement. If you proceed, it forms part of your purchase payment. If you withdraw after the cooling-off period, you generally forfeit the deposit.

Realistic Example

Kai is buying a house in Perth. Comparable sales show similar homes have been selling for $720,000 to $750,000. The vendor is asking $769,000. Kai asks his conveyancer to review the contract, then submits a written offer of $730,000, subject to finance (14 days) and a building and pest inspection (7 days), with a 45-day settlement.

The vendor counters at $755,000. Kai reviews his comparables again, determines $750,000 is fair market value, and counter-offers at $748,000. The vendor accepts. Kai exchanges contracts the following day with a 10% deposit held in trust.

Checklist: Making an Offer

Research comparable sales in the suburb from the past three to six months
Get finance pre-approval before making any offer
Request the contract of sale and have your conveyancer review it
Decide on your conditions: finance, building and pest inspection
Set a clear walk-away price based on your research — and stick to it
Submit your offer in writing with all key terms clearly stated
Set a validity window on your offer (24–48 hours) to create appropriate urgency
After exchange, ensure your conditions are progressed within the timeframes stated in the contract

Key Takeaways

Offers in Australia are made in writing, usually through the selling agent
Include conditions for finance and building inspection to protect yourself
Research comparable sales before making any offer — this is your anchor in negotiation
Once contracts are exchanged, you are legally committed (subject to any cooling-off period)
Pre-approval is essential before making an offer — without it, you are not a serious buyer in the vendor's eyes

FAQ

Can I make a verbal offer on a house? You can express interest verbally, but only a written offer or signed contract is legally meaningful. Always follow up any verbal discussion with a written offer to confirm the terms.

How long does a vendor have to respond to an offer? There is no legal requirement for a vendor to respond within any particular timeframe. Including a validity period in your offer (e.g. "this offer is open until 5pm Friday") creates appropriate urgency without appearing desperate.

Is a deposit required to make an offer? No. A deposit is paid at exchange of contracts, not when you make an offer. You do not commit any money until both parties sign and exchange.

What happens if the vendor rejects my offer? You can submit a revised offer, walk away or wait and see if the property remains available. There is no obligation on either side until contracts are exchanged.

Start Your Property Search on Marketli

Understanding what comparable properties have sold for is the foundation of any successful offer. Use Marketli to research price history and recent sales in your target suburbs before you make your first move.