How do I make an offer on a house without getting burnt?

Bayley Clarke · Mortgage broker on the road · Last checked 12 November 2026 · 7 min read

The short answer

Know your number before you say one out loud. Then call the agent with a price, follow it up in writing with your terms, and keep the conditions that protect you until you've genuinely earned the right to drop them.

The agent works for the seller, not you. Your finance clause, your building and pest and your cooling off are the things standing between you and a house the bank won't fund or a roof that needs replacing. At auction all of those disappear, so the work has to happen before the day, not after.

Who the agent works for, and should you tell them you're a first home buyer?

The agent has been hired by the owner to get the best price they can, so they're not inclined to do you a favour. That doesn't make them the enemy, it just tells you how to read 'there's a lot of interest'. The mechanics are simple: you call, say you're interested at a price, and follow up with an email setting out the price and your conditions, so subject to finance, subject to building and pest, or subject to sale if you've got a place to sell. Then the back and forth starts. The full walk through is in How do I make an offer, and who does the agent work for?

On the first home buyer question, less is more. Tell the agent what you're looking for and that you're ready to move, so they call you when something pops up. Keep the fact it's your first purchase, how much you love the place and your absolute ceiling to yourself, because those are the things that help them negotiate against you: Should I tell the real estate agent I'm a first home buyer, or does that hurt my position?

Found one? Let's make sure the finance is ready before you offer

Half an hour on the phone. I'll work out your range across the lenders, whether you need a formal pre-approval or can go subject to finance, and the price you should walk away at.

Book a 30 minute call Call 0437 189 939

No application, no credit check, nothing on your file. Just the numbers.

Buying at auction vs private sale, and buying off market

On a private sale you generally get breathing room: a finance clause, a building and pest condition, or a cooling-off period, depending on your state and your contract. At auction you don't. In NSW there's no cooling-off period when you buy at auction, and across the country the hammer generally means an unconditional contract on the spot. Side by side here: What's the difference between buying at auction and buying on market?

That's why pre-approval matters more on auction day than anywhere else, and why it still isn't enough on its own. Pre-approval says the bank is comfortable with you. It hasn't said a word about the property yet, so if the valuation comes in low after you've won, the gap is yours to find. Do the checks before you raise your hand: Can I bid at auction with just a pre-approval?

Off market is the quiet door. Fewer people know it exists, so there's less heat on the price. Let agents know what you're after and what you've got approved, and know that some sellers go off market to test a high number before they list: Can I buy a place off market before it's listed?

How long should a finance clause be?

Generally you'll see 7, 14 or 21 days. From my side, 21 days is cruisy: plenty of time for the valuation and any curly questions from the bank. But when a seller has a few offers at roughly the same price, they start reading the terms, and a seven day clause can win you the house over someone asking for three weeks. I'm comfortable with seven days when a full pre-approval is already done, because by then the bank has checked your income, expenses and credit and what's left is mostly the property. On a quick online estimate, seven days is a gamble: How long should my finance clause be when I'm making an offer?

When to get building and pest: before or after the offer

On a private sale, you book it once the offer's accepted, inside whatever window your contract gives you, and not in the last two days of it, because inspectors get booked out and you want time to get a quote and go back to the seller. At auction it's the opposite: do it before the day. And if the report finds something real, say termites and a $20k repair, your conveyancer can ask for money off. The seller will say yes, no, or meet you somewhere in the middle: When do I book the building and pest, and can I offer less money if we find problems?

Do I need a conveyancer before making an offer?

Generally no. Pick who you'll use early, check they're free around your timing and know roughly what they charge, then get them working once an offer is accepted and there's a contract to review. Until then there's nothing for them to protect. The exception is auction, where the contract needs reading before the day because there's no cooling off when you win. In NSW, walking away during the five business day cooling-off period on a private sale costs 0.25% of the price, so $1,500 on a $600k place: Do I need a conveyancer before I make an offer?

Timing: lease ends, the holidays, and buying before you sell

If your lease ends in six months, start now. Stressed buyers stretch the budget and skip the checks. Find out what breaking the lease would cost, and if you find the place early, ask for a longer settlement so it lands near your lease end: My lease ends in six months. When should I start making offers?

Over Christmas there are fewer buyers and some motivated sellers, but banks, valuers and conveyancers all run lighter, so get the finance lined up before the shutdown and allow a bit more time in the clause: Is it smarter to buy over the Christmas holidays when there are fewer buyers around?

And if you've got a place to sell, you can offer subject to sale. It gets accepted, it just tends to sit at the bottom of the pile because the seller's sale is hostage to yours. Bridging, selling first or a same day settlement are the alternatives: Can I make an offer before I've sold my place?

The honest part

Most offers that go wrong don't go wrong at the offer. They go wrong because a condition got dropped to look stronger before the approval or the inspection was actually done. Get the pre-approval, know your ceiling, and then you decide from strength which conditions to give up, rather than giving them up because you were told to. The more offers you make, the more chance you have of getting lucky, so don't expect to land the first one.

Found one? Let's get the finance ready before you offer

Tell me the property and what you earn. I'll check your number across the lenders, help you pick a finance clause you can actually meet, and line up the timing so nothing runs out on you.

Book a 30 minute call Call 0437 189 939

No application, no credit check, nothing on your file. Just the numbers.

Common questions about making an offer

Do I need a conveyancer before making an offer?+

Generally no. Choose who you'll use early, then bring them in once an offer is accepted and there's a contract to review. The exception is auction: there's no cooling off when you win, so get the contract read before the day.

How long should a finance clause be?+

Commonly 7, 14 or 21 days. Longer is more comfortable; shorter can make your offer more attractive when a seller has several at a similar price. Seven days works when a full pre-approval is already done.

Should I tell the agent I'm a first home buyer?+

You don't need to. Tell them what you're looking for and that you're ready to move. Keep your ceiling and how much you love the place to yourself, because the agent works for the seller.

Can I bid at auction with just a pre-approval?+

Yes, but pre-approval isn't the bank approving that property. If you win and the valuation comes in low, you're still locked in. Do the building and pest, your comparable sales and your limit before the day.

When should I get a building and pest inspection?+

On a private sale, once your offer is accepted and inside the period your contract allows. At auction, before the day, because once the hammer falls it's yours, problems and all.

Next question

What happens between exchange and settlement?

Offer accepted. The deposit, cooling off, the six weeks and the keys.