How to make an offer on a house | Property buying guide - NAB

Understanding the property offer process

If you’re buying a house in a private sale, it helps to understand the steps involved in making an offer. Knowing what happens at each stage can reduce stress and give you confidence when speaking with agents or sellers. This guide walks you through the entire process from reviewing contracts to settlement, including what terms like “under offer” mean and how cooling-off periods work. Before you buy, it’s also important to know your budget. Tools like our home loan calculators can help you estimate what you can afford before you start negotiating.

Review the contract

Before you make an offer on a property, take time to review the contract of sale. This document sets out the terms of the purchase, including the price, settlement date, and any special conditions. It also lists what’s included with the property, such as fixtures or appliances.

Checking the contract carefully can help you avoid unexpected costs later. If something is unclear, consider getting independent legal advice. Understanding these details early makes the next steps smoother and ensures you know your financial obligations.

How to make an offer on a house

Decide on your price and conditions

Before making an offer, work out the price you are comfortable with and any conditions you want to include. Common conditions might be a longer settlement period or making the offer subject to finance approval. Planning these details upfront helps you stay within your budget and avoid surprises later.

Plan for the deposit

Most offers require a deposit, usually a percentage of the purchase price. Make sure you know how much you will need and when it’s due. Having funds ready can make your offer more attractive to the seller and speed up the process.

Submit your offer

Offers are usually made in writing through the real estate agent, although some agents may accept verbal offers first. Written offers are more formal and help avoid misunderstandings. If you’re buying land rather than a house, there may be extra steps to consider.

Key stages after making an offer

Under offer

When a property is listed as “under offer”, it means the seller has accepted an offer from a buyer, but the sale is not yet final. During this stage, contracts may still need to be signed and conditions met, such as finance approval or building inspections. Other buyers can sometimes still make offers, depending on the agent’s policy and state rules.

Offer acceptance

When your offer is accepted, you’ll usually pay the deposit and prepare to sign the contract. The sale is still subject to any conditions you included, such as finance approval or building and pest inspections. This stage is about confirming details before moving to exchange.

Exchange contracts

Exchanging contracts is the point where the sale becomes legally binding. Both the buyer and seller sign identical copies of the contract, and these are swapped, usually through the agent or solicitor. At this stage, the deposit is confirmed, and any agreed conditions must be in place. Once contracts are exchanged, neither party can back out without significant penalties, so it’s important to be certain before this step. However, in most private sales, buyers have a cooling-off period that allows them to withdraw within a set timeframe.

What is a cooling-off period?

It’s a short timeframe that allows the buyer to withdraw from the contract without major penalties. A small fee may apply.

When does it apply?

The cooling-off period starts after contracts are exchanged. It doesn’t apply to auctions.

How long does it last?

It varies by state and territory and can generally range anywhere from 2 to 5 business days. Buyers can sometimes waive or extend it by agreement.

Settlement 

Settlement is the final stage of buying a property, when ownership officially transfers to you. The time it takes can vary, but most settlements in Australia occur within 30 to 90 days after contracts are exchanged. The exact timeline is usually agreed upon in the contract. Delays can happen if paperwork is incomplete or funds are not available on time, so it’s important to stay organised and keep in touch with your lender and solicitor.

Final checklist for buyers

  • Review the contract of sale and make sure you understand all terms, including settlement dates and inclusions.

  • Confirm your deposit amount and ensure funds are ready when required.

  • Obtain formal finance approval from your lender before proceeding.

  • Check that any conditions in your offer, such as building or pest inspections, have been completed.

  • Verify timelines for exchange and settlement so you can plan.

  • Keep in touch with your lender and conveyancer to avoid delays.

  • Prepare for moving costs and any final payments due at settlement.

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Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

Target Market Determinations for these products are available at nab.com.au/TMD.