Are you thinking about home ownership? Learn more about planning and preparation...
You're officially a homeowner, what's next? Get to know the essentials of home ownership...
Learn about the financial assistance options available to you...
Are you thinking about home ownership? Learn more about planning and preparation...
You're officially a homeowner, what's next? Get to know the essentials of home ownership...
Learn about the financial assistance options available to you...
Are you looking to buy a property at auction, private sale or off-the-plan?
In this section you will learn about researching and finding the right property for your needs, how to undergo property inspections and differences between buying auction, by private sale or purchasing off-the-plan.
If you have been granted pre-approval for a loan or are working to understand your borrowing capacity, you're likely able to start researching what type of property will suit your situation best.
To make the process of finding the right property easier, follow these short, easy steps:
Start by clarifying your requirements for the property you want to buy. These are different to your preferences.
Requirements include factors such as;
Preferences may include;
If you have worked out your spending limit, use available sources to search for properties that would be affordable. Common sources of property listings include;
When researching, review each property listing by reading the descriptions, looking at photos or virtual tours, checking what type of sale it will be and when it is planned to be sold.
Once you have found something you like, try searching for similar properties in other areas as this may show you any differences in prices. It can be useful to find a few properties that might suit your requirements.
Try having a yarn to a person you trust who knows the local market. A professional real estate agent can provide valuable insights, access to a broader range of properties and guide you through the buying process.
If someone in your community has a real estate agent that they recommend, it could be worthwhile contacting that agent to talk about your situation.
Inspecting a property that you have found allows you to get a feel for the place and assess the condition of the property firsthand before deciding to progress your path to purchase.
Here's some key steps to keep in mind when conducting property inspections...
Many properties are advertised with a set schedule of inspections when you can look through the property, which you will have to plan for.
If there is not a date listed, you may need to contact the real estate agent or the seller to organise a time to inspect.
Inspect the whole property, including outside and look out for signs of structural damage. Some common signs of structural damage include;
Document any issues or areas of concern as these will be helpful when deciding or negotiating repairs with the seller.
If you hired a professional home inspector, carefully review the inspection report. It will provide a comprehensive assessment of the property's condition, including any identified issues.
Whoever is conducting the inspection should be able to answer your questions. If they cannot, this may be an indication of an issue.
Some common questions to ask include;
"How long has the property been on the market?”
“When was the property built?”
“How many owners has the property had?”
“What are the council and water rates?”
“Are there any repairs needed on the property?”
What settlement terms are the owners looking for?”
A real estate auction is a public sale of property, advertised at a specific place and time.
Auctions are governed by strict rules which are explained at the start and usually overseen by a real estate agent acting as an auctioneer. People who want to buy the property place bids, and the property is offered to the highest bidder at the seller’s discretion.
It is recommended that you conduct comprehensive due diligence before bidding.
Discuss the auction process and the specific property with the real estate agent or your financial or legal advisors prior to participating in an auction. It is important to understand your legal obligations prior to participating in an auction.
You can also request a copy of the vendor's statement and the auction contract from the estate agent to obtain information about the property and see if legal advice is needed.
Unlike properties that go to auction, in a private sale, the property is advertised and prospective buyers are invited to make an offer to the seller or their estate agent without a public competitive process.
If purchasing through a private sale, you need to follow similar due diligence process as for an auctions, including doing property inspections.
The main difference between auctions and private sale is in the negotiation and offer process.
Once you've inspected a property for private sale, if you're satisfied, you can choose to submit an offer to the seller or their real estate agent. Included in your offer will be the proposed purchase price, settlement terms and any special conditions or requests.
There are two kinds of offers:
Once you have made an offer, the seller may accept your offer or come back with a counteroffer. Be prepared to negotiate on price, settlement period or other terms until agreement is reached. Working with a legal practitioner, like a conveyancer or solicitor, throughout the offer and negotiation stage may be necessary.
See our Connect section for more on legal supports.
Once you and the seller have agreed on the sale terms, the seller's real estate agent will prepare the Contract of Sale. If both parties sign the contract, it becomes legally binding. This requires the homebuyer to pay the agreed deposit.
In Victoria, there is a standard 3 business day ‘cooling-off period’ for private sales on properties of less than 20 hectares. During these 3 business days, you can withdraw from the contract, although you may forfeit a percentage of the deposit.
Buying off-the-plan involves buying a house or unit before the building works have been completed.
In Victoria, buyers do not pay land transfer (stamp) duty on off-the-plan purchases.
Typically, off-the-plan buyers enter into a contract with the developer or builder. This contract will contain the sale of the land (the block) and a commitment to build the house, based on the property plans and specifications.
If you have found an off-the-plan property that you like and it fits your budget and requirements, the next step is to review and sign a contract with the developer or builder. This will stipulate your obligations, and details such as the deposit required.
In the contract there will be information about when the building is to be completed, including the date of the 'sunset clause'.
For more information on the buying process, explore the Consumer Affairs Victoria summary of the process for each buying type, each with links to more information about legal terms.
A conveyancer or solicitor are legal professionals who specialise in offers, contracts and coordinating settlement.
Use our Connect section to see more on legal support.
We acknowledge the Traditional Custodians of the lands on which we work and live. We pay our respects to Aboriginal and Torres Strait Islander cultures; and to Elders both past, present and emerging. It always was and always will be Aboriginal Land.
