How Do I Make an Offer on a Property in Australia?
Making an offer on a property for the first time can feel daunting. Do you go in at the asking price? Do you offer less? What conditions should you include? This guide explains the offer process for private sales in Australia, how to negotiate effectively, and what happens after your offer is accepted.
Step 1: Do Your Research Before You Offer
Before making any offer, research recent comparable sales in the suburb (available on Domain, REA, and CoreLogic). Understand what similar properties have sold for in the last 90 days. Use this data to anchor your offer — not the asking price, which reflects the vendor’s aspirations, not market value. GeeVee can pull recent sales data, median prices and price per square metre for any suburb to help you calibrate.
Step 2: Understand the Market Conditions
In a seller’s market (low stock, high demand), you may need to offer at or above the asking price with minimal conditions to compete. In a buyer’s market (high stock, lower demand), you have more room to negotiate on price and conditions. Check the suburb’s auction clearance rate and days on market — if a property has been listed for more than 30 days, the vendor may be more willing to negotiate.
Step 3: Structure Your Offer
A written offer typically includes: purchase price, settlement period (e.g. 60 days), deposit amount (usually 10%), and any conditions (subject to finance, subject to building and pest inspection). In Victoria, offers are made on the vendor’s contract of sale. In NSW, offers are typically made in writing before contracts are prepared. Your conveyancer or buyers advocate can help you structure the offer correctly for your state.
How Much Should I Offer?
| Market Condition | Opening Offer Strategy |
|---|---|
| Seller’s market (high demand) | At or close to asking price; clean offer with minimal conditions |
| Balanced market | 3-7% below asking price; standard conditions |
| Buyer’s market (low demand) | 5-10%+ below asking; negotiate on price and terms |
| Property with known issues | Reflect rectification costs in your offer |
| Long days on market (30+ days) | More room to negotiate — vendor motivation likely higher |
Step 4: Negotiate
Most vendors expect some negotiation. Your opening offer is rarely your final offer. Counter-offers are normal. Stay calm, keep communication through the agent, and do not reveal your maximum limit. If the vendor counters above your limit, you can walk away — there will always be other properties.
Step 5: Verbal Acceptance Is Not Binding
Remember: a verbal acceptance by the agent is not legally binding. The sale is not secured until written contracts have been exchanged. Move quickly to get to exchange — delays create the risk of gazumping (the vendor accepting a higher offer before contracts are signed).
GeeVee Verdict: Data-Led, Not Emotion-Led
The most common mistake buyers make is anchoring to the asking price rather than comparable sales data. Use GeeVee to pull recent sales in the suburb before you offer — knowing what similar properties actually sold for gives you real negotiating power. A buyers advocate or property advisor can run this analysis for you and negotiate on your behalf if you want professional support.
Frequently Asked Questions
Should I offer a round number or an odd number?
Odd numbers (e.g. $812,000 instead of $810,000) can signal that you have calculated carefully to reach that figure. In a competitive situation, adding a small odd amount can be the difference between winning and losing — but data and conditions matter far more than rounding.
Can I offer below the asking price?
Yes. The asking price is what the vendor wants, not necessarily what the market will bear. Always anchor your offer to comparable sales data, not the asking price.
What happens if two buyers make the same offer?
The vendor can choose to accept either offer, or can ask both buyers to submit their best and final offer. There is no legal obligation on the vendor to tell you there is a competing offer, though most agents will disclose this to drive a higher price.
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