"We have another offer and it's unconditional" is the moment your deposit is most at risk
The agent calls. A competing buyer is going . The vendor wants an answer by tomorrow. Your pre-approval is in place but your inspection is not, and the fear of missing out is telling you to match their terms. This step gives you the decision framework for that moment, so you can respond with clarity instead of panic.
- 61% of first home buyers missed out on at least one property they were serious about .
- 47% of first home buyers paid more than they budgeted .
- 45% of first home buyers who bought in the past year regret their purchase .
Rushing into an unconditional contract without preparation is how buyers end up in both the overpaid group and the regret group. The framework below helps you make a clear-headed decision before the pressure lands.
The agent works for the seller, not for you
When an agent tells you competing buyers have submitted unconditional offers, three things might be true. The claim might be accurate. The claim might be exaggerated. Or the agent might be framing a as "basically unconditional" to push you to match it.
You usually cannot verify the claim. In Australia, agents cannot disclose the details of one buyer's offer to another buyer unless the buyer who made the offer has given consent . Agents can confirm that multiple offers exist, but they cannot show you those offers. The ACCC states plainly that it is illegal for real estate agents to mislead consumers, regardless of whether the misleading is deliberate . Fabricating competing offers is prohibited under the Australian Consumer Law. But enforcement happens after the fact, not in the moment when you are deciding what to do.
The agent works for the seller. Their job is to get the highest price with the fewest conditions . That does not make them dishonest. It means their interests and yours are not aligned, and you should make decisions based on your own position, not their urgency.
Five questions to answer before you respond
Work through these in order before you call the agent back.
1. Can you get an inspection done before making your offer?
In a private treaty sale, nothing stops you from arranging a building and pest inspection before you submit an offer. It costs $400 to $800 upfront and you risk losing that money if you do not buy the property . But it puts you in a position to make a stronger offer with your eyes open. If the market is competitive and properties are selling within days, ask the agent whether the vendor will allow access for an inspection before offers close.
2. Is the property going to auction?
At auction, the sale is unconditional the moment the hammer falls. There is no cooling-off period in any state . This means all due diligence must happen before auction day. If you are bidding at auction, the decision framework is simple: complete every inspection and get before you bid, or do not bid at all.
3. How competitive is the actual market?
Agents will sometimes create urgency even in a balanced market. Check the data yourself. Look at how long properties in the area are sitting on the market using the figure on listing sites. If the median is 30 or 40 days, you are not in a market where unconditional offers are necessary. Conditional offers with reasonable timeframes are standard in most private treaty sales across Australia.
4. What is your financial exposure if something goes wrong?
If you sign an unconditional contract and cannot settle, you forfeit your deposit. On a $700,000 property with a 10% deposit, that is $70,000 . The seller can also sue you for damages if they resell the property at a lower price . Run the worst case before you decide. If you cannot absorb that loss, you cannot afford to go unconditional.
5. What does your conveyancer say?
Never waive conditions without talking to your conveyancer or solicitor first. They review contracts for a living and will spot risks you will miss. A 10-minute phone call before you respond to the agent could save you tens of thousands of dollars.
You do not have to choose between fully conditional and fully unconditional
There is a middle ground. These four structures all signal commitment without gambling your deposit.
Shorten your inspection timeframe. A standard building and pest condition allows 7 to 14 days. Bring it down to 3 to 5 days . This shows the seller you are serious and moving fast while keeping your right to walk away if the inspection finds a serious problem. Confirm with your inspector that they can deliver a report within that window before you commit to it.
Do your inspections before making an offer. This costs $400 to $800 with no guarantee you will buy the property . But if the report comes back clean, you can make an unconditional offer knowing what you are getting. This is how experienced buyers compete at auction, and it works just as well for private treaty.
Offer a larger deposit. A 10% deposit instead of the standard 5% signals commitment without removing your protections. The vendor gets more certainty that you are serious. You keep your conditions.
Build rapport through the agent. Sellers do not always pick the highest or most unconditional offer. A clean offer from a buyer who has been communicative, responsive, and professional can beat a messy unconditional one. Your conveyancer can help structure an offer that looks strong while keeping the conditions that matter.
The ACCC prohibits agents from misleading consumers to encourage higher offers or bids . NSW Fair Trading states that agents must not make any statement, representation, or promise that is false, misleading, or deceptive, with fines of up to $22,000 . In Queensland, the REIQ warns that heavy penalties exist for agents who falsely claim competing offers exist when they do not . If you believe an agent has misled you about competing offers, you can lodge a complaint with your state's consumer protection body. But proving a false claim after the fact is difficult. The better strategy is to make your decisions based on your own financial position and your conveyancer's advice, not on what the agent tells you about other buyers.