How to Make an Offer on a House: A Step-by-Step Guide

Buying a home is often the single biggest investment you’ll make. When you find a property you love, making an offer the right way is key to increasing your chances of success, without overpaying, overcommitting, or getting caught in a bidding war.

This article walks you through exactly how to make an offer on a house, from preparing, pricing, drafting the offer, to submitting and negotiating.

1. Prepare Before You Even Think About the Offer

Get pre-approved for a loan (or know your budget)

Before falling in love with a property, first get a home loan pre-approval or at least a clear understanding of what you can afford. This helps you stay within realistic financial limits while giving the vendor confidence that you’re a serious buyer.

Pre-approval (or conditional approval) strengthens your position — because once you submit an offer, the seller knows you already have or can get financing.

Research the market

Before you decide what to offer, study recent comparable sales nearby (“comps”). Look at similar houses in terms of size, condition, and location that have sold recently, that gives you a reality check on whether the asking price is fair.

Also take into account current market conditions. Is it a seller’s market (high demand, many buyers), or a buyer’s market (less competition, slower sales)? That affects how aggressive or conservative your offer should be.

RP Data provides detailed property reports that offer valuable insights into recent sales, market trends, comparable values, and suburb performance, helping you make informed decisions before submitting an offer, and to support your research, we supply complimentary RP Data reports free of charge.

Understand the property — condition, comparable value, and potential issues

Do a thorough check of the property. Consider size, layout, age, structural condition, whether there is need of repairs or upgrades, any of these could affect value and influence how much you’re willing to offer.

If possible, get a copy of the contract of sale (or ask the agent/ vendor). Understanding terms, inclusions/exclusions (fixtures, fittings), settlement timeline, and any other conditions, before you make an offer, gives you clarity and avoids nasty surprises later.

2. Decide on Your Offer Price and Conditions

Determine a fair and realistic offer price

Balancing competitiveness with caution is key. Based on comparable sales and your budget, decide what you think the property is worth, and what you’re comfortable paying.

If the house has been on the market for some time (several weeks or months), or if the local market is cooling, there may be more room to negotiate and offer below asking. Conversely, in a hot market, or for attractive, well-priced properties, you may need to come closer to (or even above) asking to be competitive.

Consider including conditions (contingencies)

Your offer doesn’t only consist of a price. It should also list conditions or contingencies that protect you, such as:

• Subject to finance approval (if you haven’t got full approval yet)

• Building and pest inspection (so you can withdraw or renegotiate if issues are found)

• Settlement period (when the contract becomes binding, when deposit is paid, and when ownership transfers)

• Any inclusions/exclusions (fittings, fixtures) you want to negotiate.

Including reasonable conditions shows you are serious but also prudent. It also ensures you don’t end up stuck with a property that has hidden issues.

3. Draft the Offer — and Put It in Writing

Make the offer formal and written

While you might express interest verbally, a verbal offer isn’t enough. A formal offer needs to be written, via email, signed form, or a contract depending on what the vendor and agent require. This ensures clarity and legal standing.

In your written offer, clearly state:

• The purchase price

• Any conditions or contingencies (finance, inspections, settlement date, inclusions/exclusions)

• Contact details, timeframe for response, and when deposit/settlement would occur

Consider involving a solicitor/conveyancer (especially for conditional offers)

A conveyancing lawyer or licensed conveyancer can help you review the contract, ensure it includes the right clauses, and explain rights and obligations, which is particularly valuable if you’re a first-time buyer or there are unusual terms.

Involving expert advice early can help avoid problems down the track, especially if there are special conditions, or if you’re negotiating a non-standard deal.

4. Submit the Offer & Be Ready to Negotiate

Submit quickly, but strategically

In a competitive market, timing matters. Once you’ve done your homework and prepared your offer, submit it promptly. Delays may allow other interested buyers to swoop in.

Stay calm and avoid emotional decisions

Buying a house can be emotional but treating it like a business transaction generally works best. Avoid telling the agent or seller how much you love the property, oversharing desire can weaken your bargaining position.

Be ready to counteroffer or adjust conditions

After your offer is submitted, the seller may accept, reject, or respond with a counteroffer. Be prepared to negotiate, maybe adjust the price, modify conditions, or change the settlement period.

5. If the Offer Is Accepted — Finalise and Prepare for Settlement

Review and sign the contract of sale

Once your offer is accepted, you (and the seller) sign the contract of sale, often through your conveyancer. Ensure all agreed terms (price, conditions, deposit, settlement date) are correctly documented.

Be aware of the cooling-off period (if applicable)

In many Australian states — including Victoria — private sales come with a “cooling-off” period (for example, 3 business days) after signing, during which you can reconsider and withdraw if needed (though often with a small penalty).

Note: this doesn’t apply (or may differ) for auction sales.

Prepare for settlement and move in

Once all conditions are satisfied (finance, inspections, paperwork), you can proceed to settlement, the day you become the official owner. Make sure your conveyancer helps with title transfer and coordinates with relevant parties.

6. Smart Tips to Make Your Offer More Attractive

• Don’t show desperation. Over-eagerness can undermine your negotiating position.

• Ask the right questions. Try to find out why the seller is selling, a motivated vendor may be more open to negotiation.

• Use contingencies wisely. While conditions like finance approval or building inspection protect you, too many or overly restrictive conditions may make your offer less attractive.

• Be realistic and fair. Lowball offers can backfire if the seller perceives them as insincere or disrespectful. But if the property has lingered on the market, a reasonable discount may work.

7. How Making an Offer Helps Your Home-Buying Success

• A well-prepared, written offer signals to the seller you are serious and capable, increasing your chances of acceptance.

• Including smart conditions and reasonable price protects you from unexpected issues while still being appealing.

• Acting quickly but strategically, with pre-approval and market knowledge, gives you an edge over less-prepared buyers.

• Professional advice (from conveyancers, mortgage brokers) helps you avoid legal pitfalls and hidden costs.

Final Thoughts

Making an offer on a house doesn’t have to be stressful or overwhelming. By following a clear process, doing your research, understanding your budget, writing a strong offer, and negotiating sensibly, you improve your chances of success while protecting yourself financially and legally.

If you’re thinking about buying in a competitive market, get your finances ready, consult a conveyancer early, and treat the offer process with care.