Cooling Off Period: Risk or Reward

In NSW, most residential property sales (excluding auctions) come with a five-business-day cooling-off period. It’s a built-in protection for buyers, and while the contract is signed, the sale isn’t locked in until that period lapses.

For sellers, this short window can feel unsettling. Occasionally, buyers try to renegotiate. Sometimes, finance falls through. Other times, legal or building concerns make them nervous enough to walk.

But when managed well, this period doesn’t have to be a risk. In fact, it can be a strategic advantage.

Great agents take steps to avoid last-minute surprises. That means giving buyers time and space to properly engage with the property. Rushed decisions often lead to regret, so we prefer they’ve inspected the home more than once, had all their questions answered, and aren’t being pressured into a “best and final offer” they’re unsure about.

We also like to know buyers are financially sound. A quick call to their broker can confirm the facts. Building and pest reports should be ready to go, and any quirks in the title, zoning or easements should be disclosed and priced in.

The more transparent and well-prepared the sale is, the less likely a buyer is to change their mind during the cooling-off period.

Of course, some buyers are confident and well-advised enough to waive their cooling-off period entirely. This is done via a 66W certificate and can be a powerful move in competitive environments, especially when multiple offers are on the table.

Auction sales don’t include a cooling-off period at all. That can sound appealing at first glance. But in reality, buyer fears don’t magically disappear on auction day. Many hesitate to spend thousands on reports for properties they may not win. Others simply don’t have time to get finance sorted by auction day and drop out of the race altogether.

Ironically, these are often the same buyers who would pay strong money if given just a few more days to wrap things up.

So, while the cooling-off period has its moments of tension, with the right process in place, it can work in your favour.