Making an offer
Making a private-sale offer
How a private-sale offer is actually made, common conditions, the deposit, negotiation, and when the sale becomes binding.
- An offer is usually made by signing the contract of sale through the agent, or directly with the seller if there's no agent.
- Common conditions: subject to finance (naming the lender), sale of an existing property, or a satisfactory building/pest inspection.
- Write an expiry date into your offer so you know by when it needs a response.
- The deposit is held in trust and can't be released to the seller until the contract is unconditional and 28 days have passed.
How a private-sale offer is actually made
If an agent is managing the sale, you make your offer through them, usually by signing the contract of sale, and the agent takes it to the seller unless the seller has instructed them not to (Consumer Affairs Victoria, verified 30 Jul 2026). Agents must pass on all verbal and written offers to the seller unless instructed otherwise in writing; if told not to submit pre-auction offers, the agent must tell you that your offer won't reach the seller (Consumer Affairs Victoria, verified 30 Jul 2026). A written offer, for these purposes, can be any written format stating at minimum the price offered and any other terms — it doesn't have to be the formal contract itself (Consumer Affairs Victoria, verified 30 Jul 2026). If no agent is involved, you negotiate directly with the seller. Either way, write an expiry date into your offer so you know by when it needs a response (Consumer Affairs Victoria, verified 30 Jul 2026).
Conditions worth considering
You can negotiate conditions such as loan approval ("subject to finance" — always nominate the specific lender), the sale of an existing property, or a satisfactory building or pest inspection (Consumer Affairs Victoria, verified 30 Jul 2026). Each condition protects you but can also make your offer less attractive to a seller comparing it against a cleaner one — decide in advance which conditions genuinely matter to you and which you'd trade away, rather than deciding under time pressure mid-negotiation.
Negotiating
Negotiation can include verbal back-and-forth — though only a written offer can create a binding contract — competing offers from more than one buyer, and agreement on a settlement period (commonly 30 to 90 days) and which items are included in the sale (Consumer Affairs Victoria, verified 30 Jul 2026). A seller can reject an offer for reasons other than price, such as its conditions or proposed settlement date, not only because the number is too low.
What the contract of sale should state
The contract should record the property and party details, agent and conveyancer details, the price offered, the deposit amount, the balance owing at settlement, the agreed settlement period, any conditions, and the items included in the sale — an item not listed can be difficult to claim ownership of at settlement (Consumer Affairs Victoria, verified 30 Jul 2026).
The deposit
You pay the deposit — in full, or partially with the remainder due by a date in the contract — into a trust account held by the agent or the parties' conveyancer/legal practitioner. It can only be released to the seller before settlement if the contract is unconditional, you're satisfied with the proof-of-debts information provided, and it's been at least 28 days since the contract was signed (Consumer Affairs Victoria, verified 30 Jul 2026). A Bill currently before Victorian Parliament — the Consumer Legislation Amendment Bill 2026, which has passed the Legislative Assembly but not yet the Legislative Council or received Royal Assent — would replace this test entirely, requiring an express contract term for early release and barring the agent from taking commission out of an early-released deposit; neither change is in force yet. If the seller doesn't accept your offer, your deposit is returned. Deposit amounts and release rules differ significantly by state — see the property deposits guide for the full 8-state comparison.
GST
As a general rule of thumb, GST applies to new homes but not established homes unless the seller is GST-registered, and the contract must state clearly whether the price is inclusive or exclusive of GST (Consumer Affairs Victoria, verified 30 Jul 2026). GST treatment in practice depends on the specific property, seller and contract — confirm it with your conveyancer before you sign, not after, rather than relying on the rule of thumb alone.
Worked example
A buyer offers $685,000 for a house, subject to finance and a satisfactory building inspection, with a 45-day settlement and a 10-day offer expiry written into the contract. The seller counters at $700,000 unconditional. The buyer decides the building-inspection condition matters more than the $15,000 gap given the property's age, and instead offers $695,000, keeping both conditions but shortening the finance-condition deadline after confirming with their broker that final approval could realistically be turned around in that time. They don't drop the finance condition itself — their pre-approval was only ever an indication the lender might lend up to a certain amount, not a commitment to fund this specific property. The seller accepts. The negotiation moved on price, timing and which conditions to keep, not on removing protection to close a price gap.
Practical checklist
Before you submit a private-sale offer
- Decide your price and which conditions matter most to you, before negotiating
- Nominate a specific lender if the offer is subject to finance
- Write an offer-expiry date into the contract
- Confirm what's included in the sale is actually listed in the contract
- Know where your deposit will be held and when it can be released
Relevant Delora tool
Questions for a professional
- Does this contract reflect the exact price and conditions I've agreed?
- Is the deposit-handling arrangement in this contract standard?
Official resources
- Consumer Affairs Victoria: Buying property by private sale
- Consumer Affairs Victoria: Underquoting information for real estate agents
Sources and methodology
- Buying property by private sale — Consumer Affairs Victoria (retrieved 30 Jul 2026)
- Underquoting information for real estate agents — Consumer Affairs Victoria (retrieved 30 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.