Gazumping in NSW: Can Another Buyer Beat Your Accepted Offer?

Gazumping in NSW: Can Another Buyer Beat Your Accepted Offer?

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You make an offer on a Sydney property.

The selling agent calls you back and says:

“Congratulations, the vendor has accepted your offer.”

You start organising the contract, building and pest inspection, finance and deposit.

Then another buyer appears with a higher offer.

Can the vendor change their mind and sell the property to them?

In NSW, potentially yes until contracts have been exchanged.

This is commonly known as gazumping.

For buyers, it can be one of the most frustrating parts of purchasing property because an accepted offer can feel like you’ve secured the property when legally you may not have.

Understanding the difference between an accepted offer and exchange of contracts is critical.

What Is Gazumping in NSW?

NSW Government describes gazumping as occurring when an agent or seller accepts your offer to purchase a property at an agreed price but then sells the property to someone else, commonly because another buyer has offered more.

For example:

You offer:

$1,500,000

The vendor accepts.

Before contracts are exchanged, another buyer offers:

$1,525,000

The vendor decides to proceed with the second buyer.

If that buyer exchanges contracts first, you may have been gazumped.

Does an Accepted Offer Mean the Property Is Yours?

No.

This is probably the most important thing for NSW property buyers to understand.

An agent saying:

“Your offer has been accepted”

does not generally create the same legal certainty as exchanging contracts.

In NSW, the property sale becomes binding when both parties have signed their copies of the contract and those contracts are exchanged.

Until then, the vendor can generally change their mind.

So think of the process as:

Offer accepted → negotiation agreed in principle → contract prepared/reviewed → contracts exchanged → property secured contractually

The dangerous period is between:

“Offer accepted”

and

“Contracts exchanged.”

Can the Agent Continue Showing the Property?

Potentially, yes.

Before exchange, the vendor can continue negotiating with other prospective purchasers.

The selling agent acts for the vendor, not the buyer.

NSW Government guidance specifically reminds buyers that before contracts are exchanged, a seller may continue negotiating with other buyers for a higher offer.

This is why you should not assume:

“They accepted my offer, so nobody else can buy it.”

Does the Agent Have to Tell the Vendor About Another Offer?

Generally, yes.

An agent acting for the vendor is required to pass offers to their client up until exchange of contracts unless the vendor has given instructions otherwise in writing.

For example, a vendor could instruct the agent not to present offers below a certain amount.

So if another buyer appears after your offer has been accepted and offers more, the agent generally cannot simply ignore that offer.

That is one reason gazumping can occur even when the selling agent appeared genuinely happy to proceed with you.

Can Another Buyer Beat You With a Lower Offer?

Potentially.

Another important point is that the vendor does not necessarily have to choose the highest offer.

NSW Government guidance notes that a vendor generally isn’t compelled to sell to a particular buyer and may even accept a lower offer from another prospective purchaser.

Why would they do that?

Because price isn’t always the only consideration.

A vendor may prefer another buyer because of:

• a shorter or more suitable settlement
• fewer requested contract changes
• deposit arrangements
• greater certainty
• timing
• the buyer’s readiness to exchange
• other terms important to the seller

This is why a strong property offer isn’t always simply:

the highest number.

Example: How Gazumping Can Happen

Imagine a Sydney property is advertised around:

$1.45m–$1.5m

You inspect it, analyse the comparable sales and offer:

$1,485,000

After negotiation, the vendor accepts:

$1,500,000

You then begin:

• arranging a building and pest inspection
• having your solicitor review the contract
• confirming finance
• organising the deposit

Two days later another buyer offers:

$1,520,000

You receive a call:

“We’ve received another offer. Do you want to improve yours?”

You now have a decision to make.

But the first question shouldn’t automatically be:

“How much do I need to beat them by?”

It should be:

“Does paying more still make sense based on the property’s value and my maximum?”

Don’t Let Gazumping Turn Into an Emotional Bidding War

This is where buyers can become vulnerable.

You believed you had secured the property.

You’ve mentally moved in.

You’ve told family and friends.

You’ve already spent money on inspections and legal work.

Then suddenly somebody else wants it.

Emotion can take over.

Your $1.5 million offer becomes:

$1.51m

then:

$1.52m

then:

$1.535m

because:

“We’ve already come this far.”

But another buyer appearing doesn’t automatically change the property’s underlying value.

Before increasing, return to:

• comparable sales
• property condition
• location
• land
• renovation requirements
• defects and risks
• your budget
• your finance position
• your predetermined maximum

Don’t allow the fear of losing the property to become the reason you overpay for it.

Can You Ask the Agent to Take the Property Off the Market?

You can certainly ask.

You could request that the vendor:

• stop further inspections
• stop negotiating with other buyers
• proceed immediately toward exchange

But an accepted offer by itself doesn’t necessarily require the vendor to do those things.

If exclusivity or another contractual protection is important to you, that is something to discuss with your solicitor or licensed conveyancer.

Don’t rely purely on verbal assurances.

Does Paying a Holding Deposit Stop Gazumping?

Not necessarily.

Sometimes a buyer may be asked to pay an expression of interest deposit or preliminary deposit.

That does not automatically secure the property.

NSW rules require buyers to be informed that an expression-of-interest deposit:

• does not oblige the vendor to sell
• does not oblige the buyer to purchase
• is refundable if a sale contract is not entered into

Agents can also receive expressions of interest relating to the same property, and if another buyer enters into the contract, your expression-of-interest deposit must be refunded.

So don’t confuse:

paying a preliminary deposit

with

exchanging contracts.

They’re not the same thing.

Can You Get Your Costs Back If You’re Gazumped?

Generally, don’t assume so.

You may already have paid for:

• solicitor or conveyancer fees
• building inspection
• pest inspection
• strata report
• other due diligence
• finance-related enquiries or costs

NSW Government states that if you’re gazumped, the seller and selling agent are not obliged to compensate you for those kinds of costs.

An expression-of-interest deposit, however, must be refunded.

That’s one reason gazumping is so frustrating.

You can lose the property and have already spent money trying to purchase it.

How Can NSW Buyers Reduce the Risk of Gazumping?

You can’t necessarily eliminate the risk before exchange, but you can reduce unnecessary delays.

1. Have Your Contract Reviewed Early

Don’t wait until your offer has been accepted before first requesting the contract.

Ask for it as soon as you’re seriously considering the property.

Have your solicitor or licensed conveyancer review it early.

That means you’re in a stronger position if negotiations move quickly.

2. Have Your Finance Position Prepared

Understand your borrowing position before making serious offers.

You don’t want the vendor ready to exchange while you’re only beginning to investigate whether you can obtain the finance required.

3. Complete Important Due Diligence Promptly

Depending on the property, this could include:

• building and pest inspection
• strata report
• contract review
• council/planning considerations
• comparable-sales assessment
• property-specific investigation

Being organised before or during negotiation can reduce the period between accepted offer and exchange.

4. Put Your Offer Clearly in Writing

Written offers create a clearer record of:

• price
• settlement
• deposit
• proposed terms
• conditions

NSW Government also recommends that offers may be made verbally or in writing and notes that putting them in writing can help buyers keep track of negotiations.

5. Be Ready to Exchange When Appropriate

If you’re satisfied with the property, your legal advice, due diligence and finance position, unnecessary delay can expose you to more competition.

But speed should not replace proper due diligence.

The objective isn’t:

exchange as fast as humanly possible.

It is:

be prepared enough that you don’t lose the property simply because you weren’t organised.

What About the NSW Cooling-Off Period?

For most residential private-treaty purchases in NSW, buyers generally receive a 5-business-day cooling-off period after exchange.

The period starts when contracts are exchanged and generally ends at 5pm on the fifth business day after the day of exchange.

There are important exceptions.

For example, there is no cooling-off period when purchasing at auction or when contracts are exchanged on the same day after a property has been passed in at auction.

Your solicitor or conveyancer should advise you on the applicable position before exchange.

What About a 66W Certificate?

A buyer can waive the normal cooling-off period by providing a 66W certificate.

That may sometimes make an offer more attractive to a vendor because the contract becomes immediately unconditional in relation to cooling-off rights.

But that is a significant legal step.

Once you waive cooling-off rights, you lose an important protection.

A 66W should therefore never be treated simply as:

“the trick to beating another buyer.”

Get legal advice before agreeing to waive your cooling-off rights. NSW Government specifically recommends seeking advice before doing so. (NSW Government)

What If the Agent Says: “We’ve Received Another Offer”?

Don’t panic.

Ask useful questions.

Depending on the circumstances, you may want to understand:

• Is another offer actually on the table?
• Has it been put to the vendor?
• Is the vendor asking for a revised offer?
• Is there a deadline?
• Are price or terms the issue?
• Is the seller asking everyone for best and final offers?

NSW Government suggests that if you’re told another offer has been made, you may ask for that information in writing, although an agent isn’t required to provide it in writing.

Then return to your strategy.

Should You Increase Your Offer If You’re Being Gazumped?

Sometimes.

But not automatically.

Suppose you offered:

$1,480,000

Another buyer offers:

$1,500,000

Your pre-determined maximum is:

$1,510,000

Comparable evidence still supports that level.

You might decide to increase.

But suppose your maximum was already:

$1,480,000

Another buyer appearing does not magically make the property worth $1.52 million to you.

There is a difference between:

losing a good property

and

avoiding a bad purchase decision.

Sometimes Walking Away Is the Better Deal

This matters particularly when buyers feel they’ve already “won” the property once.

If another buyer pushes the price beyond what you believe the property is worth, walking away can be difficult.

But paying $30,000, $50,000 or $100,000 more purely because you don’t want someone else to have it can be much more expensive than losing the property.

Another property will come.

The money you overpay doesn’t necessarily come back.

Sometimes securing the property is the right decision.

Sometimes walking away is the better deal.

How a Sydney Buyer’s Agent Can Help During Gazumping and Multiple-Offer Negotiations

Situations involving gazumping can move quickly and become emotional.

A buyer’s agent can assist by helping you:

• assess comparable sales
• establish a purchase-price range
• determine your maximum before negotiations escalate
• communicate with the selling agent
• understand the competing-offer situation
• structure your offer and negotiation strategy
• coordinate with your solicitor or conveyancer
• remain disciplined if another buyer appears
• decide when to increase and when to stop

The selling agent represents the vendor.

A buyer’s agent represents the buyer.

The objective isn’t simply to beat another purchaser.

It’s to secure the right property at a price and on terms that still make sense for you.

Had an Offer Accepted on a Sydney Property?

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Final Thoughts

An accepted offer in NSW does not necessarily mean the property has been secured.

Until contracts are exchanged, the vendor may still receive and consider other offers.

That’s why serious buyers should:

prepare early, understand the property’s value, complete due diligence efficiently, know their maximum and be ready to exchange when appropriate.

But don’t allow the possibility of being gazumped to push you beyond the price you decided the property was worth.

The goal is not simply to beat the other buyer.

The goal is to make the right purchase.

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Disclaimer: This article contains general information only and does not constitute legal, financial, credit or property advice. Property transactions and individual circumstances vary. Obtain advice from an appropriately qualified solicitor or licensed conveyancer regarding contracts, exchange, cooling-off periods and 66W certificates.

I checked the legal/process sections against the NSW Government’s current Making an Offer on a Property guidance, updated 8 July 2026, and NSW Government contract and deposit guidance.