A pre-auction offer is worth accepting when it matches or beats what recent sales say your property is worth, it’s in writing, and the buyer can exchange straight away on unconditional terms. It’s worth holding out when the offer sits below the evidence, or when strong competing interest is building. In Darlinghurst and Surry Hills this spring, 11 of the 14 sales Domain recorded over three weeks happened before auction day, so it’s a decision many local vendors are facing. And from 17 November 2026, how you say no matters too.
Why so many local properties are selling before auction
Over the three weeks to 24 October 2026, Domain recorded 14 sales in Darlinghurst and Surry Hills. Eleven of them were made before auction day.
That fits what’s happening across Sydney. Auctions are harder work than they were a year ago:
- Clearance rates are down. Cotality’s preliminary Sydney clearance rate was 45.1% for the week ending 1 November, on 710 auctions. Domain’s preliminary rate for the week ending 24 October was 45%, against 70% in the same week last year.
- More vendors are pulling out before auction day. In the week ending 24 October, 37% of Sydney auction results reported to Domain were withdrawals.
- Prices are falling. Sydney home values fell 1.6% in October and are 10.1% below their February peak (Cotality).
- Homes are taking longer to sell. Across the capital cities, the median home took 39 days to sell, and vendors discounted their asking price by an average of 4.7%.
- Rates are rising. On 3 November, the RBA lifted the cash rate to 4.85%, its fifth increase this year.
In that market, a buyer who is ready to commit before auction day has real value. The question is whether their offer is the right one.
For more on what the clearance rate does and doesn’t tell you, see what Sydney’s falling clearance rate means for local vendors.
Sources: Domain, Sydney auction results · Financial Newswire, Average clearance rate comes in under 50% for seventh week (6 November 2026) · Cotality, Home Value Index, November 2026 Savings.com.au, RBA lifts cash rate to 4.85% (3 November 2026)
Why buyers make pre-auction offers
Buyers usually offer early for one of four reasons:
- To avoid competition. If they’re the only bidder at the table, they don’t have to outbid anyone on the day.
- For certainty. With rates rising, some buyers want to secure a home while their finance is approved.
- Because they’ve missed out before. Buyers who have lost at auction elsewhere are often keen to settle the matter early.
- Because of a deadline. A lease ending, a job starting or children starting school.
An early offer tells you the buyer is serious. It doesn’t tell you it’s their best price.
What a strong pre-auction offer looks like
Before you consider the number, check the offer against these five points:
- The price stacks up. It’s at or above your agent’s estimated selling price and in line with recent comparable sales in your street or building. Our guide to pricing in a softening market explains how to read the evidence.
- It’s in writing. A phone call isn’t an offer you can weigh up properly.
- It’s unconditional. The buyer’s finance is approved, and their solicitor or conveyancer has reviewed the contract.
- The buyer can exchange now. A strong pre-auction offer usually comes with a section 66W certificate, which waives the cooling-off period (more on that below), and the deposit set out in the contract.
- The settlement terms suit you. Settlement is usually about six weeks after exchange, but it can be shorter or longer if that works better for you.
An offer that ticks all five is a serious one. An offer that ticks only the first is still worth negotiating, but it isn’t the same as a sale.
Accepting early versus holding out
| If you accept early | If you hold out for auction day |
|---|---|
| You get certainty: if the buyer signs a 66W certificate, the sale is binding on exchange. | Competition on the day could push the price higher than any single offer. |
| You avoid auction-day risk, at a time when more than a third of Sydney auction results are withdrawals. | The buyer may buy elsewhere, and the offer may not come back. |
| You might leave money on the table if two buyers would have bid against each other. | If interest is thin, you may pass in or withdraw, then negotiate from a weaker position. |
The most useful test is simple: compare the offer with the evidence, not with the price you hoped for at the start of the year. Sydney values are 10.1% below their February peak, so a price that would have disappointed in February may be a strong result today.
How a pre-auction sale works in NSW
A sale before auction is a private sale, so the usual private sale rules apply, not auction rules.
- There’s a cooling-off period unless the buyer waives it. For residential property in NSW, the buyer has a 5 business day cooling-off period after exchange. It ends at 5pm on the fifth business day.
- Pulling out during cooling-off costs the buyer 0.25%. A buyer who withdraws during the cooling-off period forfeits 0.25% of the purchase price, which is $250 for every $100,000.
- A 66W certificate waives cooling-off. The buyer’s solicitor or conveyancer signs it. Many pre-auction offers are made on this basis, because it gives the seller the same certainty as a sale under the hammer.
- Auction sales are different. There’s no cooling-off period when a property is sold at auction, or when contracts are exchanged on the same day after it passes in.
- Your agent must pass on every offer. That includes pre-auction offers, even ones you might not like.
Your conveyancer or solicitor should review the contract and any offer conditions before you exchange.
Sources: NSW Fair Trading, Contracts and deposits when buying property Law Society of NSW, Cooling-off notice for the Contract for Sale (March 2026) NSW Fair Trading, Price estimation and underquoting
New from 17 November 2026: a rejected offer can set your price floor
New NSW pricing rules start on 17 November 2026. Two matter for vendors weighing an early offer.
Price floors. Agents won’t be allowed to advertise or quote a price lower than any of these:
- their estimated selling price
- the highest bid by a registered bidder at an auction where the property passed in
- a written offer the seller rejected only because it was too low
- a price the seller has said they won’t accept.
Prices in advertising. For sales under agency agreements signed on or after 17 November 2026, advertisements arranged by the agent must include a price or price range. Online ads that break the rules must be fixed within one business day. Ads published before 17 November that show a price must also be updated if, for example, a written offer is rejected only because it’s too low.
The penalties for agents are significant: up to $110,000, or three times the agent’s commission if that’s higher. From 8 February 2027, agents will also need to provide a Statement of Information setting out the comparable sales behind their estimate.
What this means for you: if you turn down a written pre-auction offer only because it’s too low, your agent can’t advertise or quote the property below that figure afterwards. That’s no reason to accept an offer you don’t like. But it is a reason to reject in writing deliberately, knowing the figure becomes the floor for the rest of the campaign. The floor applies to advertising and price quotes. It doesn’t limit the price you can choose to accept.
If your campaign started before 17 November, ask your agent how the new rules apply to it.
Source: NSW Fair Tradin, Changes to property and stock agents laws (updated 29 October 2026)
Questions to ask your agent before you answer
- How does this offer compare with the last three comparable sales?
- How many other buyers have inspected more than once, or asked for the contract?
- Is the buyer’s finance approved? Will they sign a 66W certificate and exchange this week?
- If I say no, what’s a realistic range on auction day, and what’s that based on?
- If I reject this offer in writing, what does that mean for how the property is advertised from here?
A good agent will answer all five with evidence, not just reassurance. If you’re not sure the timing works before Christmas, our guide to selling before Christmas sets out the dates.
Nicholas Murray’s view
“Over the three weeks to 24 October, 11 of the 14 sales Domain recorded in Darlinghurst and Surry Hills happened before auction day. Buyers who are ready are acting early. My advice is to judge any early offer against the evidence, meaning recent sales in your street and building, rather than the price you hoped for at the start of the year. If it stacks up and the buyer can exchange unconditionally, it deserves serious consideration.”
For the latest local results, see Nicholas’s fortnightly market update.
Weighing up an offer?
Nicholas can compare any offer with recent sales in your street and give you a straight view on whether to accept, counter or hold for auction day.
Book a free sales appraisal with Nicholas →
You can read more about how Nicholas works with vendors, or see our guides to the selling process in Darlinghurst, selling in Darlinghurst and selling in Surry Hills.’
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Frequently asked questions
Should I accept a pre-auction offer?
Accept a pre-auction offer when it matches or beats what recent comparable sales say your property is worth, it’s in writing, and the buyer can exchange straight away on unconditional terms. Hold out when the offer is below the evidence or several buyers are showing strong interest. Your agent should show you the comparable sales before you decide.
Is there a cooling-off period on a pre-auction sale in NSW?
Yes, unless the buyer waives it. A pre-auction sale is a private sale, so a 5 business day cooling-off period applies after exchange. A buyer who withdraws during that time forfeits 0.25% of the purchase price. The buyer can waive the cooling-off period by giving the seller a section 66W certificate.
What is a 66W certificate?
A section 66W certificate is a document signed by the buyer’s solicitor or conveyancer that waives the cooling-off period on a NSW property contract. Many pre-auction offers are made with a 66W certificate, so the sale is binding on exchange, much like buying at auction.
Does my agent have to tell me about every offer?
Yes. In NSW, your agent must pass on any offers made for your property, including pre-auction offers. Ask your agent to put each offer in writing so you can compare price, conditions, deposit and settlement terms side by side.
What happens if I reject a pre-auction offer?
From 17 November 2026, if you reject a written offer only because it’s too low, your agent can’t advertise or quote a price below that offer for the rest of the campaign. You can still decide what price to accept. It’s worth rejecting in writing deliberately, knowing it sets a floor for advertising.
Sources
- Domain — Sydney auction results (weeks ending 10, 17 and 24 October 2026, preliminary)
- Financial Newswire — Average clearance rate comes in under 50% for seventh week (6 November 2026, Cotality figures for the week ending 1 November)
- Cotality — Home Value Index, November 2026 (data to 31 October 2026, released 2 November 2026)
- Savings.com.au — RBA lifts cash rate to 4.85% (3 November 2026)
- NSW Fair Trading — Contracts and deposits when buying property
- Law Society of NSW — Updated cooling-off notice for the Contract for Sale (March 2026)
- NSW Fair Trading — Price estimation and underquoting
- NSW Fair Trading — Changes to property and stock agents laws (updated 29 October 2026)