Buyer’s guide · NSW
Pre-auction offers in NSW: what every buyer needs to know
A pre-auction offer in NSW lets you try to buy before auction day, but sellers usually ask you to waive cooling-off. Learn how it works and how to protect yourself.
Found a home you love, but it’s going to auction? A pre-auction offer in NSW lets you try to buy the property before auction day, without bidding against a crowd.
It can work well. But sellers usually want a pre-auction sale to be just as final as an auction sale. That means you may have to give up your cooling-off rights. This guide explains how pre-auction offers work, your rights, and how to protect yourself.
Key takeaways
- A pre-auction offer is an offer you make to buy a property before its auction.
- The seller doesn’t have to accept it, and can still go to auction.
- A contract signed before auction day normally has a 5 business day cooling-off period. Contracts signed at auction do not.
- Most sellers ask you to waive cooling-off with a section 66W certificate from your lawyer or conveyancer. The contract is then binding straight away.
- So finish your due diligence and finance before you make the offer.
- Agents must not quote a price lower than their estimated selling price. Stronger underquoting laws are on the way.
On this page
What is a pre-auction offer?
A pre-auction offer is an offer to buy a property before its scheduled auction. You’re asking the seller to sell to you now, instead of taking their chances on auction day.
According to NSW Government guidance, if the seller agrees to consider pre-auction offers, the negotiation works the same way as a private sale. Read more about how to make an offer on a property.
Buyers often make pre-auction offers when:
- they want to avoid competing at auction
- they think they can secure a fair price early
- the seller seems keen to sell quickly
- the market is moving fast
Do you get a cooling-off period with a pre-auction offer?
Under the Conveyancing Act 1919 (NSW), most residential contracts have a 5 business day cooling-off period. During this time you can pull out for any reason, but you lose 0.25% of the price.
There’s no cooling-off if you buy at auction, or if you exchange on the same day as the auction after the property is passed in. A contract signed before auction day isn’t an auction sale, so cooling-off normally applies.
Why sellers ask for a section 66W certificate
Sellers usually want a pre-auction sale on “auction terms”. In practice, this means you must waive cooling-off.
You do this through a section 66W certificate. Your own solicitor or conveyancer (who can’t act for the seller) signs it. Before they sign, they must explain the contract to you and what it means to give up cooling-off.
Once contracts are exchanged with a 66W certificate, the contract is binding straight away. You can’t back out because you change your mind, find a problem or can’t get finance.
Learn more in our guide to cooling-off periods in NSW.
How to make a pre-auction offer in NSW
- Get the contract reviewed early. Ask your lawyer or conveyancer to check the contract and suggest changes before you make an offer. If the seller accepts, things move fast.
- Do your due diligence. Get a building and pest inspection, and a strata report if it’s a unit. Check the property, zoning and title documents.
- Get your finance ready. Make sure your loan approval is in place and you have your deposit ready.
- Make the offer in writing. Give it to the agent. Include your price, deposit, settlement period and any changes you want to the contract.
- Be ready to exchange. If the seller accepts, they may want to exchange the same day. Expect to provide a 66W certificate, pay the deposit (usually 10% unless agreed otherwise), and accept limited contract changes.
Benefits and risks of a pre-auction offer
| Benefits | Risks |
|---|---|
| You might secure the home before others can bid | No cooling-off if you sign a 66W certificate |
| You avoid the stress of auction day | You carry the risk of anything you didn’t check |
| You can sometimes buy at a good price | Your offer may be used to push up other offers |
| You can negotiate terms like settlement date | The seller can still reject your offer and go to auction |
Your offer can set the benchmark
Agents often tell other interested buyers that an offer has been made. This can encourage others to offer more, or convince the seller to go ahead with the auction.
Set your top price before you start, and stick to it. Until contracts are exchanged, the seller can accept a better offer from someone else. Read our guide to gazumping in NSW to learn more.
What if you can’t settle?
If you sign a binding contract and then can’t complete, you may lose your deposit. The seller may also claim damages, for example if they resell for less.
What are the auction rules in NSW?
If your offer isn’t accepted, you may end up bidding at auction. Auctions in NSW are run under the Property and Stock Agents Act 2002 and the Property and Stock Agents Regulation 2022. Key rules include:
- You must register with the agent and show ID before you can bid.
- The auctioneer can make only one vendor bid (a bid for the seller), and must announce it.
- Dummy bidding (fake bids to push up the price) is illegal.
- The highest bidder buys the property, as long as the reserve price is met.
- There’s no cooling-off period at auction. You usually pay a 10% deposit on the day.
See the NSW Government guide to buying at auction, or our own guide to buying at auction.
Can an agent underquote the price?
Underquoting is when an agent suggests a property will sell for less than they really expect, to attract more buyers.
Under current NSW law, the agent must put an estimated selling price in their agreement with the seller. They must not advertise or tell buyers a price lower than that estimate. If the estimate is no longer reasonable (for example, after higher offers), they must update it. Phrases like “offers over” are banned in price advertising.
Parliament passed stronger underquoting laws in 2026. Some changes started on 29 June 2026. The main underquoting rules, including higher penalties and new price guide requirements, are expected to start later. Check the NSW Government’s underquoting guidance for updates.
Use the agent’s price guide as a starting point only. Do your own research on recent sales before you make an offer.
Frequently asked questions
Do I have to waive cooling-off to make a pre-auction offer?
Not legally. But most sellers will only accept a pre-auction offer if you do. You can try to negotiate a shorter cooling-off period instead.
Can the seller accept another offer after accepting mine?
Yes, until contracts are exchanged. A verbal “yes” from the agent doesn’t bind either party.
Can I make a pre-auction offer subject to finance?
You can ask, but sellers rarely agree. Most want an unconditional contract, like at auction.
How much deposit do I need?
Usually 10% of the price, unless the seller agrees to less. You might be able to use a deposit bond if the seller accepts it.
Need help buying property in NSW?
Talk to our property team
Property & Conveyancing
Our team can review the contract before you make a pre-auction offer and talk you through the 66W certificate. Find out more about our conveyancing services for buyers.
This article is general information only and is not legal advice. It reflects NSW law at the date of publication. Please contact us for advice about your circumstances.
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