Most buyers think making an offer is about choosing a price.
It isn't.
The price matters. But so do your finance date, building and pest condition, deposit and settlement date. If the seller accepts, those are the conditions you must keep.
I've helped buyers make offers for more than 10 years. And the strongest offer is rarely the one with the most aggressive wording or the highest price.
In this guide, I'll show you how I approach an offer from the first comparable sale through to settlement. You'll also see the questions I ask agents, real client examples and a template you can use to put your offer in writing.
My 7-step plan for making an offer
Here is the whole process before we get into the detail:
Work out what the property is worth to you.
Ask how the seller will assess the offers.
Inspect the property and order the right checks.
Have the contract reviewed before you sign.
Confirm the finance timeframe with your broker.
Put the full offer in writing, not only the price.
Negotiate against your limit, not your emotions.
The exact legal process differs by state and contract. In Queensland, a buyer will often sign the proposed contract as the offer. That makes legal review before signing more useful than trying to fix a condition later.
If you are buying at auction, the process is different and the contract is generally unconditional. Read our guide to buying at auction before you bid.
Step 1: Work out what the home is worth to you
The asking price is not a valuation. If the agent lists a price, treat it as a starting point.
I start with settled sales for genuinely comparable homes. I look for the same property type and suburb, or within about 2km, then compare land or internal area, condition, bedrooms and bathrooms.
For an apartment, I go closer again. I compare the building, floor, aspect, car space, body corporate costs and internal area.
Online estimates can help you find a starting point. But I would never let an automated estimate decide my offer because it can be massively inaccurate.
A property valuer uses a similar process. They explain why each sale is comparable and may adjust for the fittings, finishes and other differences. You can track the same evidence in a simple spreadsheet.
Use a range, not one magic number
For example, say a home is advertised at $950,000.
The closest settled sales suggest $900,000 to $925,000. The home also needs work.
That does not automatically mean you should offer $902,500. It tells you where the evidence sits. Your job is to adjust for the differences and decide your maximum before the negotiation starts.
I call that your walk-away price.
Write it down.
Once an agent tells you there is another buyer, your memory becomes surprisingly generous.
Set 3 prices before you negotiate
In the checklist we give our own clients, I ask buyers to write down three numbers:
Ideal price: the price that would feel like a genuinely good buy.
Expected price: the price the comparable sales suggest is most realistic.
Walk-away price: the maximum you are willing and able to pay.
Your opening offer can sit near the ideal price when it is still credible. Your walk-away price is different. It is the line you do not cross just because the agent calls back with another buyer.
Read more: how to value a property.
Step 2: Find out how this seller will choose an offer
Private sales do not follow one neat national process.
One agent may negotiate back and forth. Another may ask every buyer for their best and final offer. A seller may accept before an advertised deadline.
This is where buyers often get caught.
They ask, "Are there other offers?"
That is useful. But it is not enough.
The questions I would ask the agent
How long has the property been on the market?
Why is the seller moving, and do they have a preferred timing?
Has the asking price changed during the campaign?
Has a previous contract fallen over? If so, why?
Are there other written offers?
When do offers close?
Can the seller accept an offer before that deadline?
Is this best-and-final or a back-and-forth negotiation?
Will I get another chance to improve my offer?
What settlement date would help the seller?
Can I have the contract and disclosure documents now?
The answer changes the strategy.
If it is a genuine best-and-final process, holding back $20k may mean you never receive another phone call.
If the agent plans to negotiate openly, you may have room to start lower and move carefully.
Neither approach is automatically better. I just want to know which game I am playing before I put a number on the page.
This does not tell you what price the seller will accept. It does give you a useful question to ask: does timing matter more than squeezing out the highest possible price? Confirm the seller's priorities with the agent before shaping your terms.
How $2,999 helped Jordan secure the property
Jordan was preparing a best-and-final offer around $780k. The agent told every buyer there would be no negotiation and encouraged non-round numbers to reduce the chance of a tie.
Jordan still had room below his walk-away price. After checking the extra cash contribution, he submitted $782,999 instead of $780k.
Jordan secured the property for $782,999. The tactic cost him an extra $2,999, not $10k or $20k, and kept him comfortably below his limit.
The lesson is not to add random digits to every offer. When you only get one best-and-final shot, work out your true ceiling first and submit the strongest exact number you are genuinely comfortable paying.
Do this next: Ask the agent to confirm the process in writing. Do not assume the last agency's process will be repeated.Step 3: Inspect the property and check what you cannot see
Ten minutes at an open home is not due diligence.
Inspect carefully, ideally more than once. Check access, drainage, visible damage, street noise, inclusions and the expensive parts of the home that excitement can hide.
Then arrange the checks that suit the property and contract. Depending on the sale process, you may complete some before signing or protect them with properly drafted conditions. Ask your legal adviser what needs to happen, and when.
That can include a building and pest inspection and searches through your solicitor or conveyancer.
The client checklist also prompts buyers to check the less obvious issues:
body corporate records, ongoing levies and known works for an apartment or townhouse
the lease term and conditions if the property is tenanted
aircraft noise, road noise and other local nuisances
school catchments, past flooding, planning and other local issues
whether every feature on the original buyer brief still matters after the excitement of the inspection
I tell our home buyers they should look to inspect twice where the sale timing allows it. The first inspection tells you whether the home feels right. The second is where you slow down, work through the checklist and investigate anything you may have missed.
Read more: how to check a Brisbane FloodWise property report.
When property searches changed the offer
Our client asked their solicitor to complete the searches before the contract went unconditional.
The searches showed that a carport did not appear to have council approval.
That did not automatically stop the purchase.
Instead, it gave our buyers something specific to investigate, a likely cost to allow for and evidence they could use in the negotiation.
The evidence helped our clients negotiate a $20k settlement adjustment, and they still completed the purchase.
That is the real value of due diligence. It gives you choices while you still have them.
Buying a tenanted property in Queensland or Victoria
If you buy a property with tenants in place, the lease does not simply disappear at settlement. You generally take over the existing rental agreement and become responsible for the landlord's obligations.
Before you sign, have your solicitor review the lease type and end date, rent, bond, arrears, notices, maintenance history and property-management records. If you plan to move in, make sure the contract promises vacant possession on a date you can actually rely on.
Also check whether landlord insurance is appropriate. Building insurance does not automatically cover rent default, tenant damage or every liability that comes with owning a rental property.
Queensland and Victoria apply different tenancy rules, so confirm the position with your legal adviser before you make the offer.
Queensland's seller disclosure scheme gives buyers important information before they sign. But it does not replace your own legal and property checks. See the Queensland seller disclosure guide.
Step 4: Get the contract reviewed before you sign
Here is where I see buyers focus on the wrong thing.
They spend days debating whether to offer $910k or $915k. Then they skim the conditions that could expose them to a much larger loss.
Your offer is the price plus the terms.
Common terms include:
Finance: the amount, lender and deadline need to match the loan path you are using.
Building and pest: the wording decides what happens if the report finds a problem.
Settlement: the date needs to work for the seller, lender and your own move.
Deposit: confirm the amount, due date and where the money will be held.
Inclusions: record anything that must remain with the property.
Sale of another property: get legal advice if your purchase depends on your existing sale.
The selling agent does not act for you.
Your solicitor or conveyancer should explain the contract, special conditions and when the offer becomes binding.
In Queensland, an offer is commonly made by signing the proposed contract. That is why I would rather fix a clause before you sign than argue about it afterwards.
Watch: how a Queensland contract of sale is put together
This Hunter Galloway walkthrough explains the reference schedule, printed conditions and special conditions you will commonly see in a Queensland contract.
Step 5: Choose a finance period you can actually meet
This is the part of the offer where my advice becomes very specific.
A 7-day finance clause is not stronger if formal approval cannot be completed in 7 days.
At Hunter Galloway, we regularly assess shorter finance periods. Before your broker or bank suggests a timeframe, ask:
Has the application been fully assessed?
Is the pre-approval still current?
Does the lender still need a valuation? What type of valuation is this?
Is the property acceptable to that lender?
Are updated payslips or financials required?
How quickly is the chosen lender assessing applications right now?
Pre-approval is useful.
But it is not final approval of the property, valuation or loan.
How a 5-day finance clause secured the home
Rachel and Emma were competing for a Brisbane property above $1.7m. The agent had made it clear that a standard 14-day finance period would struggle against the other offers.
Their file was already fully pre-assessed and pre-approved. We had the current income documents, had checked the lender and property path, and were ready to lodge the signed contract as soon as it arrived on Monday morning.
After checking the timing with me, they set the finance deadline for 5pm Friday. That gave the seller a decision within 5 days without asking Rachel and Emma to remove the finance condition altogether.
They secured the home with the 5-day clause. The seller got a fast, clear deadline, and Rachel and Emma kept the finance protection they still needed.
Read more: what pre-approval does and does not mean.
Step 6: Build an offer the seller can act on
Now bring the price and terms together.
There is no reliable rule that says you should offer 5% or 10% below asking.
I use this order instead:
Set a value range from comparable sales.
Allow for condition and likely repair costs.
Check the competition and time on market.
Set the walk-away price.
Choose an opening offer that you can support.
You can offer 20% below asking.
The seller can also reject it without countering.
A lower offer is more likely to start a useful conversation when the listing is above comparable sales, the property needs work or your terms solve a genuine problem for the seller.
Change the strategy when the market changes
I do not use one offer strategy for every suburb or every Saturday.
I look at what is happening around that property.
| What you are seeing | How I would respond |
|---|---|
| Few buyers and a long listing period | Support a lower offer with comparable sales. Keep the protections you need and leave measured room to negotiate. |
| Steady interest without a rush | Submit a clear written offer. Explain the evidence and ask which settlement terms matter to the seller. |
| Multiple written offers or a deadline | Confirm whether it is best-and-final. Improve only the terms you can safely meet and stay inside your limit. |
A competitive market may change the price and timing.
It does not change what you can afford.
For more tactics, read our guide to negotiating a house price with the agent.
Market conditions can change by city, suburb and price bracket. Herron Todd White's Month in Review can help you check whether your target market is rising, steady or weakening before you choose your offer strategy.
Think about the offer from the seller's side
The seller is usually asking 4 questions:
Can this buyer complete the purchase?
Do the dates work for me?
Is the offer clear?
How likely is this contract to reach settlement?
Price is part of that decision. It is not always the whole decision.
How a broker call helped beat a cash offer
Mark and Eliza found a home in Enoggera listed at $980k. The agent told them they were competing with an unconditional cash offer, and the seller was leaning towards the certainty of cash.
They did not remove their 7-day finance condition or push beyond their limit.
We had already pre-assessed their position up to $1.05m. At their request, I called the agent and explained why the 7-day finance clause was realistic based on the file at that time.
The seller accepted their offer. That phone call did not turn the purchase into cash or guarantee final approval. It gave the seller specific reasons to feel confident that the finance condition was well prepared and achievable.
I do not make this call on every offer. But in a competitive market, direct reassurance from the broker can remove enough uncertainty to help a financed buyer beat cash without throwing away the protection they still need.
Should you write a personal letter to the seller?
Sometimes.
A seller may have raised a family in the home or spent years renovating it. A short, sincere note can make a buyer feel less anonymous when two offers are otherwise close.
But I would treat the letter as a tie-breaker, not a negotiation strategy.
Keep it brief. Say what you appreciate about the home and that you are organised and ready to proceed. Do not reveal your maximum budget, promise that you will do anything to win or include sensitive personal information that is irrelevant to the sale.
The letter cannot repair a weak price, an unrealistic finance date or unclear conditions. Those parts of the offer still have to work.
Watch: what I would not tell the real estate agent
The agent needs enough information to see that you are a credible buyer. They do not need your maximum borrowing capacity or a detailed account of how desperate you are to own this particular home.
Use the building and pest report as evidence
A building and pest report is not always a simple pass or fail.
If it identifies genuine defects, it can give your legal adviser evidence to negotiate repairs, a price reduction or another agreed outcome before the deadline.
Ask the inspector:
Is this structural, safety-related or normal maintenance?
What happens if it is not fixed?
Does another specialist need to inspect it?
What is a realistic repair-cost range?
How a report helped one couple save $17,000
Priya and Ben's report found termite damage and several smaller problems.
They did not guess a discount.
They obtained advice, looked at the likely cost and went back to the seller with evidence.
The seller agreed to reduce the price by $17,000.
That number matters. But the bigger lesson is how they reached it.
The report turned a vague concern into a documented negotiation.
Searches and inspections still cost money when an offer fails. Decide how much due diligence you will fund before each offer. Do not increase your price just to justify money you have already spent.
Read more: how to renegotiate after a building inspection.
Step 7: Put the complete offer in writing
A price sent by text is not a complete offer strategy.
Your written offer should identify:
the property address
the buyer's full legal name
the price
the deposit and due date
finance and building and pest conditions
the proposed settlement date
inclusions and exclusions
an expiry only if your legal adviser recommends one
Keep the price explanation factual.
If you include a personal note, keep it separate from the negotiation. Do not tell the agent how far you would stretch or suggest that emotion will make you pay above your limit.
A written-offer template
This email can start the conversation. It does not replace the contract or legal advice.
In Queensland, the agent may ask you to sign the proposed contract. Have the contract and any added wording reviewed first.
How I hold the line on a counteroffer
When an agent asks for 'just $10k more', I go back to the walk-away price before I answer.
I negotiate against the written limit, not the pressure of the phone call.
Before responding, I go back to four questions:
Did the seller change the price only, or other terms as well?
Has new evidence changed our view of value?
Are we increasing because the home supports it or because we feel rushed?
Would we regret losing the property at our written limit?
You do not have to split the difference or raise the price immediately.
You can accept, counter, hold your position, improve a seller-friendly term or walk away.
If your first offer is rejected, ask why. The issue may be price, timing, conditions or uncertainty about your buying position.
Sometimes a seller-friendly settlement date improves the offer without another dollar being added.
Read more: how to handle a multiple-offer situation.
Know when your offer becomes binding
A verbal "the seller likes it" does not mean the property is yours.
The binding point, cooling-off rights and cost of withdrawing depend on the state, sale method and contract.
This table summarises the general position for a standard private residential sale. Auctions, contracts signed near an auction and other exceptions can be different.
| State or territory | General private-sale position |
|---|---|
| Queensland | Generally 5 business days after the buyer receives the contract signed by both parties. A penalty of up to 0.25% may apply. Auction-related exceptions apply. |
| New South Wales | Usually 5 business days after exchange for an established home. Withdrawing usually costs 0.25%. Auction and waiver rules apply. |
| Victoria | Generally 3 clear business days from signing. The cost is $100 or 0.2%, whichever is greater. Exceptions apply. |
| South Australia | Generally 2 clear business days after the later of signing and receiving the Form 1. Auction exceptions apply. |
| Western Australia | No mandatory cooling-off period unless the parties add one to the contract. |
| Australian Capital Territory | Generally 5 working days after the contract is made. Auction, tender and other exceptions apply. |
| Northern Territory | Generally 4 business days for property not sold at auction. The period may be changed by agreement. |
| Tasmania | No required statutory cooling-off period. Seek advice on protections written into the contract. |
Cooling off is not the same as a finance condition.
Do not plan to use cooling off as a substitute for getting advice before signing.
Auctions are also different. They are generally unconditional, so complete your legal, property and finance checks before bidding.
Read more: buying at auction and what to do after signing a contract.
What to do as soon as the seller accepts
Once you receive the accepted contract, move quickly.
Send it to your solicitor or conveyancer and broker.
Record the finance, inspection, deposit and settlement deadlines.
Arrange any required building and pest inspection.
Confirm when building insurance must start.
Supply the final loan documents and valuation access.
Check before changing jobs, opening credit or spending settlement funds.
When 7 days was not really 7 days
Ethan and his partner had missed out at auction.
Before making their offer, they asked whether their auction-ready pre-approval meant they could leave out the finance clause, or do a shorter clause like 7 days.
Their application was not the problem.
The calendar was.
It was 24 December, when lender credit teams were operating with fewer staff. Their contract deadline did not pause simply because banks were closed. With the Christmas and New Year public holidays, formal approval was unlikely before early January.
Once normal processing resumed, 7 days was fine for their application. During the shutdown, it was not.
Arrange home and contents insurance early
In Queensland, do not assume insurance starts at settlement.
The Queensland Government says that, in most cases, you become responsible for the property from 5pm on the next business day after the contract date. That can be weeks before settlement.
Check the exact contract with your solicitor or conveyancer because the risk date can change. If you have a mortgage, the lender may also require evidence of building insurance before settlement.
Home insurance generally covers the building and its fixtures. Contents insurance protects your belongings, so consider both rather than assuming one policy covers everything.
Read more: when to arrange insurance after buying a home.
For an apartment or townhouse in a community titles scheme, the body corporate will usually insure common property. You still need to check what its policy covers and arrange cover for your own contents and anything outside that policy.
Do this next: Ask your solicitor when risk passes under your contract. Arrange cover from that time and confirm what any body corporate policy does and does not insure.
If you want the seller to remain responsible until settlement, ask your solicitor whether a special condition is appropriate. Do not copy a generic clause into the contract yourself.
A lender valuation checks the lender's security.
It is not a reward for negotiating below asking price, and it may not match the contract price or an online estimate.
If the lender needs more time, contact your broker and legal adviser before the finance deadline. Your legal adviser can request an extension, but the seller can refuse.
Why $15,000 off still went back to the lender
Luca negotiated $15,000 off after the contract had been accepted.
That sounded like good news. And it was.
But the lender had assessed the original contract and loan position.
We still had to provide the revised contract and obtain confirmation. Finance was due the next day, so I recommended that Luca ask his conveyancer for an extension rather than assume the update would be immediate.
A lower price often helps the numbers.
But when the contract changes, the lender still needs the final version.
Plan the final inspection and settlement
Your lender and legal adviser will work through approval, documents, searches, transfer duty, adjustments and settlement funds.
Your job is to remain available and avoid making financial changes without checking first.
Book the final inspection close to settlement. Check that:
the property is in the required condition
the agreed inclusions remain
there is no new damage
unwanted items have been removed where required
agreed repairs and special conditions are complete
Tell your legal adviser about a problem immediately. Do not arrange your own deduction from the settlement amount.
Read more: simultaneous settlement and the difference between a lawyer and conveyancer.
Frequently asked questions
What does making an offer on a house mean?
It means proposing to buy the property at a stated price and on stated terms. Those terms can include the deposit, finance, building and pest, settlement date and inclusions. The legal effect depends on the document and state.
Do I need a solicitor or conveyancer when making an offer?
I recommend having one review the contract and explain when the offer becomes binding. This is especially important when the offer uses a signed contract, special conditions or may be unconditional.
How do I make an offer on a house?
Research comparable sales, set your walk-away price, review the contract, confirm the finance timeframe and put the complete offer in writing. In Queensland, the offer is often made by signing the proposed contract.
Is there a standard private-sale offer process?
No single process applies across Australia. An agent may ask for a verbal indication, email, expression-of-interest form or signed contract. Ask how this sale will be handled before choosing your strategy.
What should I ask the agent before submitting?
Ask when offers close, whether the seller may accept earlier, how competing offers will be handled, whether you will receive another chance, which settlement date the seller prefers and whether the contract and disclosure documents are ready.
What is a best-and-final offer?
It is a process where buyers submit the strongest price and terms they are willing to offer, often without another chance to negotiate. Treat it as your final decision and stay inside your walk-away price.
Can a seller accept before the advertised deadline?
It may be possible, depending on the sale process and state. An advertised expression-of-interest date does not always guarantee that the seller will wait. Ask the agent directly.
How much should I offer below asking price?
There is no standard percentage. Use comparable settled sales, property condition, competition, seller preferences and your limit. Five per cent below can be too much for an underpriced home or too little for an overpriced one.
Is a verbal offer binding?
The answer depends on the state, document and how the contract is formed. A verbal indication may start negotiations without securing the property. Ask your legal adviser about your specific offer.
Should I make my offer subject to finance?
If you need a loan, a finance condition may protect you if approval is not obtained under the contract terms. Pre-approval does not remove valuation, property and final credit risks. Get advice before waiving it.
Does a larger contract deposit strengthen the offer?
It may signal commitment to some sellers, but it does not improve the lender's assessment. It also ties more of your money to the contract. Agree the amount with your legal adviser and broker.
Can a lower offer beat a higher offer?
Yes. A seller may prefer another buyer's settlement date or conditions. A lower offer only becomes stronger when the terms help the seller and remain safe for you to perform.
Can I change an offer after sending it?
You may be able to withdraw or replace an offer before acceptance. Once a binding contract exists, a change normally requires agreement or a right under the contract or law. Get legal advice quickly.
Can I make an offer before an auction?
You can ask whether the seller will consider one. They may decline, negotiate or bring forward competition. The proposed contract may still be unconditional, so complete your checks before signing.
When should I arrange home insurance in Queensland?
In most cases, Queensland buyers become responsible for the property from 5pm on the next business day after the contract date, not settlement. Confirm the risk date with your solicitor and arrange any building cover your contract or lender requires. See the Queensland Government guidance.
Can I make an offer on a tenanted property?
Yes. But first review the lease and contract with your solicitor. You may inherit the existing landlord obligations at settlement. If you want to live in the property, confirm whether vacant possession is available and exactly when it must be provided.
The making-an-offer checklist I give clients
Before you press send or sign the contract, work through these checks:
- The property still matches the important parts of my original buyer brief.
- I have inspected carefully, ideally twice, and arranged the professional checks I need.
- I have reviewed body corporate records or tenancy details where relevant.
- I have checked local noise, catchments, flooding, planning and other location risks that matter to me.
- I have comparable sales and three written prices: ideal, expected and walk-away.
- I have asked why the seller is moving, which dates matter and how competing offers will be handled.
- My solicitor or conveyancer has reviewed the contract and any special conditions.
- My broker has confirmed what has been assessed and what remains outstanding.
- The finance and building and pest periods are realistic.
- The deposit and settlement date are workable.
- My full legal name, legal adviser and inclusions are recorded correctly.
- I am comfortable completing the purchase if the seller accepts.
- I have confirmed when insurance responsibility starts and arranged the building and contents cover I need.
If one box is still blank, that is the next job.
Make your next offer fast, without guessing on finance
We can review your pre-approval, property type, likely valuation path and lender timing before the offer deadline. You will know what has already been assessed, what could still delay approval and the shortest finance period you can realistically offer.
That gives you a cleaner, faster offer without pretending a pre-approval is cash. The initial conversation does not create a credit enquiry.
Sources and further reading
Official state and territory property guides
Consumer Affairs Victoria: using a property manager or real estate agent
ACT legislation: Civil Law (Sale of Residential Property) Act 2003
This guide is general information, not legal or financial advice. Contract law and cooling-off rights differ by state, sale method and contract.
Get advice from your solicitor or conveyancer before signing. Have your full financial position reviewed before choosing a loan or waiving a finance condition.
Client names and identifying details have been changed for privacy.