Let's Buy a Home

You’ve found a home. You’ve got pre-approval. Everything is falling into place ... but what’s the last step?

Remember, any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation.

There are two main ways to buy property in Australia: at auction or through a private sale.

Buying through Private Sale

If a place is for sale, you're welcome to make an offer on it as soon as you're ready - you don't have to wait for an auction. This is usually done through the seller's real estate agent, who handles negotiations, terms and so on.

How do you make an offer?

To start making an offer on a place, you decide what you think you can and should pay, and send it in writing to the seller's agent. The agent will share your offer with the vendor.

You can include things like dependencies: 'We'd like to offer $550K for this property in this location, subject to us getting final approval from our lender and the property passing a building inspection.'

Can I change my mind?

You're not tied to anything until both you and the seller have both signed an agreement and you've paid a deposit. An offer is the start of a conversation.

More than likely, the agent will come back with a counter offer, which you can counter in turn if you like. Or, several potential buyers might make offers and you'll need to decide if you want to stay in the fight.

You can even make offers on multiple properties, though offering often when you're not serious can give you a dark rep with agents and maybe even hurt you when you find The One.

How do I know what to offer?

There are rules around giving a fair idea of the expected sale price. They're a bit different in every state and territory, but generally it's against the law for real estate agents to massively underquote. That said, it can be wild out there and the price of a property ultimately comes down to what someone else is willing to pay. We've said it before, but checking the 'sold' section of the apps for properties that are truly like the one you're hoping to buy, and that have sold recently, can help here.

You can use all your existing research, suburb guides and budget and the price range to settle on an offer. There is likely to be a negotiation, especially if they have interest from other buyers, so think about whether you want to go in with your best and final offer right off the bat.

When is it all over?

If everything goes well, and you can agree on a price, the vendor or their agent will arrange for you to get a contract and pay a deposit. Before you hand over $$, you'll want to engage a conveyancer or solicitor. You'll also work with the agent and the seller to set the terms of settlement.

It's up to you to make sure that you get what you need throughout this process (like, if you've said 'subject to building inspection', don't skip it. And ensure you're comfortable with what the inspection means before you pay. A good inspector will walk you through what they found).

Buying at an auction

Buying at auction is as easy as registering your interest and sticking up your hand. In some places, like Victoria, you don't even have to register: just rock up and start bidding.

But doing it well is an art - there are whole Youtube rabbit holes for tips on how to stay calm and look like you're totally in control (even when you're dying inside a bit) so you can dominate the day.

At an auction, potential buyers bid against each other until only one remains. Sellers often opt for an auction (instead of a private sale) when they think their property is likely to attract multiple potential buyers who will bid against one another.

This can also mean many different people have fallen in love with the same place. So it's not a time for mercy. Your nerves will have to be pure steel. You might consider employing an advocate to negotiate and bid for you.

Offers before auction

Usually, a property that's up for auction will have a few open inspections and then the vendor will ultimately wait until auction day to sell. So, if you love it, you just have to hang in there and hope.

However, many sellers will also consider offers before auction. That means you can send your offer to the real estate agent ahead of time, based on what you think it's worth. If it's accepted, the auction will be cancelled.

Do I need to pay on the day?

Yes. Unlike private sales, which give you the chance to set clauses and negotiate, winning at an auction is binding and you will require financial approval.

If you win, you’ll need to pay your deposit on the day, when you sign the contract. Check the requirements in your state or territory.

You'll also need to get every inspection and contract detail you want before the day.

Also - and this is the tricky one - strongly consider setting a limit so you can stick to it. You know how we said to go to some auctions before you're ready to bid? When you do, you'll notice how auctions are designed to toy with your emotions so you pay more. If you reach your ceiling, walk away.

Navigating the home-buying process can be complex, but our Up Home Guides are here to help you understand everything. They can assist you every step of the way, making sure you're informed and feeling confident.