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Tanya Spencer

How to Make an Offer to Purchase a Property in NSW: A Simple Guide

Making an offer on a property is a big step, whether you're buying through a real estate agent or directly from the seller. If you’re unsure how to go about it, don’t worry. Here’s an easy-to-follow guide on how to make an offer to purchase a property in New South Wales (NSW), with or without a real estate agent.



Step 1: Do Your Research

Before making an offer, it’s important to research the property’s market value. Look at recent sales of similar properties in the area to get an idea of what a fair offer would be. You don’t want to offer too little or too much, so doing your homework is key.

Step 2: Decide on Your Offer

Once you have a good understanding of the property’s value, decide how much you're willing to offer. Consider things like:

*  The condition of the property (Does it need any repairs or renovations?)

*  How long the property has been on the market (If it’s been listed for a while, the seller may be more open to negotiations)

*  Your budget and how much you’re willing to spend

Step 3: Making an Offer with a Real Estate Agent

If you’re dealing with a real estate agent, here’s how to make your offer:

* Verbally or in Writing: You can either make your offer verbally over the phone or submit it in writing. A written offer is generally more formal and can include specific details.

* When making an offer, you’ll need to specify:

    - The amount you’re offering

  - The terms of the sale (for example, if you want certain inclusions like furniture or appliances)

    - The deposit amount (usually 5-10% of the purchase price)

   - Your preferred settlement period (this is the time between the offer being accepted and the property officially changing hands, typically 30-90 days)

* Negotiate: The seller may accept, reject, or counter your offer. Be prepared to negotiate and adjust your offer if necessary.

Step 4: Making an Offer Without a Real Estate Agent

If there’s no real estate agent involved, you’ll be negotiating directly with the seller. Here’s how to go about it:

1. If you’re interested in making an offer, reach out to the seller directly. This can be done via phone, email, or in person.

2. To make the process more formal, it's a good idea to submit your offer in writing. Include all the key details such as:

    - The offer price

    - Conditions of the sale (e.g., subject to a building inspection)

    - The deposit amount

    - Your preferred settlement period

3. Just like with an agent, the seller may counter your offer. Be ready to negotiate terms and price until you both agree on a deal.

Step 5: The Contract of Sale

Once your offer has been accepted, a Contract of Sale will be drawn up. This contract outlines all the details of the transaction, including the price, settlement date, and any conditions. Here’s what happens next:

It’s important to have the contract reviewed by a conveyancer before you sign anything. They will check for any red flags and make sure everything is in order.

Once you’re happy with the terms, you’ll sign the contract, and the seller will do the same. At this point, you’ll need to pay the deposit.

Step 6: Cooling-Off Period

In NSW, buyers are usually entitled to a cooling-off period of five business days. During this time, you can change your mind and cancel the sale, but you may lose a small portion of your deposit (typically 0.25% of the purchase price). This period gives you time to get your finances in order or rethink your decision.

Step 7: Settlement

The settlement period is the time between signing the contract and officially taking ownership of the property. During this time, your conveyancer will work with the seller’s representative to ensure all legal documents are in place and the funds are transferred.

On settlement day, the property officially becomes yours!


Making an offer on a property in NSW can seem intimidating, but by following these simple steps and seeking advice from professionals like SL Conveyancing, the process becomes much easier. Whether you're working with a real estate agent or dealing directly with the seller, just be clear, negotiate with confidence, and let your conveyancer handle the legal side of things.


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