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It’s Crunch Time!: How to Make an Offer on a House

May 14, 2024
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4 mins


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This is it – you’ve found your dream property, and you’re ready to make an offer. But then questions start to creep into your mind. Am I offering too much? Will my deposit be enough? What conditions should I include? With the help of your Inovayt mortgage broker, you can quash those doubts and learn how to make an offer on a house. 

What are the different ways to sell property in Australia?

Before we get into making an offer, it helps to understand how property is sold. There are three different ways to sell property in Australia. These are: 

Private treaty – this method is when a property is advertised for sale by the owner, generally with a set price or price range. 

Auction – at an auction, prospective buyers bid on a property at a set time and place. All bids at auction are unconditional offers. 

Expression of interest – an expression of interest is like a silent auction. Buyers must submit their offers by the due date when the property is listed. The owner and agent then review the offers and choose the best one. 

How can I make an offer on a house?

So, you’ve found the house of your dreams and can’t wait to put an offer down – but how do you do that? If you’re ready to throw your hat in the ring, here are a few of the ways you can make an offer:  

  • Verbal offer – with a verbal offer, you’ll need to tell your real estate agent what you are willing to pay for the property, including details about the deposit, settlement date, conditions, etc.
  • Written offer – a written offer is when you submit an offer in writing via email or document template from your real estate agent.
  • Contract of sale – the last is a contract of sale. This refers to when prospective buyers fill out and sign a formal contract of sale with the help of their mortgage broker. 

What should I include in my offer?

While what you need in an offer varies depending on the type of offer you’re submitting, there are a few key characteristics to note when presenting your offer. If you don’t need all of the following information, it doesn’t hurt to have it all somewhere that’s easily accessible, as there is a chance your broker will need it later. 

When it’s time to gather information, make sure these things are high up on your list:

Price of offer 

Firstly, while it might seem obvious, you’ll need to be clear about the amount of your offer. Stick to your budget, and don’t let anyone try to talk you into paying more than you’re comfortable with. 

Deposit amount

Like the price of your offer, you’ll need to advise how much of a deposit you’re using. This includes any grants you might be using (like the First Home Buyers Grant in your state), which can remove the need to pay Lender’s Mortgage Insurance (LMI). 

Settlement date and time

Next, you’ll want to include a settlement date and time (or rough idea). Settlement periods are usually 30, 60, 90, or 120 days). 

Conditions of offer 

One of the most important things to include in your offer is any conditions you may have. These conditions include building and pest inspections, financial approval, and more. They are discussed in more detail below. 

Broker details

Providing details of your mortgage broker means your broker can act on your behalf and help take out some of the stress associated with purchasing a property. 

Conveyancer details 

The same goes for your conveyancer! Providing details of your conveyancer is another way to simplify the process and ensure it goes smoothly. 

What’s the difference between a conditional and unconditional offer? 

When you’re looking to make an offer on a house, you may hear the terms conditional and unconditional offer. Here is how to tell the difference. 

Conditional offers

A conditional offer is an offer that depends on certain conditions that may benefit either party. These conditions may be negotiated between the buyer and the seller and enable a purchaser to terminate the contract if they are not fulfilled. These conditions may include the following: 

  • Building inspection: A building inspection is done to ensure the property has no serious faults or other issues
  • Pest inspection – a pest inspection is undertaken to check the home is free from harmful species like termites. 
  • Financial approval – allows the purchaser to ensure their lender approves the amount they need to borrow.

Unconditional offers

Lastly, an unconditional offer is not dependent on conditions. Once an unconditional offer is made and signed, it becomes a legally binding document between both the buyer and seller. It is essential to ensure the contract is reviewed before signing to avoid any surprises. 

Before signing an unconditional contract, it’s vital to speak with a professional, as there are potential risks for both parties. However, as a property buyer, the risks are slightly higher. This is mainly because the seller has greater power to retain a deposit if the contract of sale fails.

Should I make a conditional or unconditional offer? 

A conditional offer is always recommended to protect yourself from potential financial losses. However, before deciding whether to make a conditional or unconditional offer, it’s best to get advice from your mortgage broker.

Can an Inovayt mortgage broker help me make an offer?

Our team of Inovayt mortgage brokers have a wealth of experience making an offer to purchase the property of your dreams. We work with a variety of lenders and simultaneously partner with your conveyancer, so you don’t need to lift a finger! If you’re ready to start your homebuying journey, contact the Inovayt team today.

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