Before we begin, it will be helpful to know who you will meet along your journey.
Behold, the cast of characters you will encounter on your quest for the perfect property.
The Buyer (You )
The hero of our tale. The protagonist, seeker of a new home or investment.
You may be a first-time homebuyer, excited and overwhelmed or a seasoned investor looking for the next big deal.
Your quest is filled with hope, challenges and thrills in seeking the perfect property.
Mortgage Broker
The financial wizard and possibly one of the most important members of your team.
Your broker will assess your financial health, find the best loan rates and terms, and guide you through the mortgage process.
There is no point in continuing on your journey before establishing your borrowing capacity, so the broker will be your first port of call.
Brokers are preferable to banks because they have access to multiple banks’ and lenders’ products and can find one that suits your needs.
Learn more about mortgage brokers in the Banks Vs Brokers section.
The Seller
The one parting with their property. They can range from reluctant partner to antagonist depending on whether they are eager to move on or overly attached to their property. You may not interact with them directly, but their presence looms large over the transaction.
The Selling Agent (Real Estate Agent)
The real estate agent selling the property will typically be approachable charismatic, and friendly. Remember though they are not your friend. They work for the seller of the property and their job is to get the highest possible price.
This does not mean your relationship with them should be adversarial. On the contrary, you should aim to have a good relationship with them and have them see you as a genuine buyer.
Be respectful of their time. Don’t play like you aren’t interested in a property if you are. This could be to your disadvantage as deals with other parties may happen without you knowing because the agent thinks you aren’t a serious potential buyer.
You also don’t want to reveal too much as it can weaken your negotiating position.
They will want to know if you are ready to buy. Which means having your finances in order (ie, you are pre-approved or have unconditional approval) and you are ready to sign a contract if the right property comes along. You can answer this honestly, but do not reveal how much you are approved for.
The Buyer’s Agent
If you don’t have the time or interest in doing your homework on your next purchase, consider the services of a good buyer’s agent.
A buyer’s agent can source your ideal property, bid for you at auction and liaise with your broker and conveyancer.
You pay for a buyer’s agent out of your own pocket, but you get customised service from an experienced professional.
Conveyancer or Solicitor
While a conveyancer specialises in property, not all lawyers or solicitors do. If using a lawyer, make sure they regularly deal with property. If you don’t know a conveyancer or solicitor, see if someone can recommend one to you.
A conveyancer is an expert in property law and facilitates property transactions, ensuring legal obligations are met and your rights as the buyer are protected.
Your conveyancer is responsible for preparing the sales contracts, mortgage agreement and other related documents.
They check for outstanding arrears, land tax obligations, help with building and pest inspections or strata inspection reports if the property is strata titled.
They also work out adjustments and payments for council and water rates.
And finally, they attend settlement to ensure a smooth transfer of ownership.
Building and Pest Inspector
The detectives of the real estate world. Can be seen as the bearers of bad news but look for issues that can affect the property value or liveability.
Many inspectors are licensed for both building and pest inspections. It makes it easier if you find one that can do both. A building report will let you know the condition of the structure and highlight any problems and their severity.
The pest report should alert you to any signs of termites or other pests.
The inspector should walk you through the reports, answer any questions and provide recommendations on any actions you need to take.
Don’t ask the selling agent for a building and pest inspector referral. This would be a conflict of interest as they want a favourable outcome.
A building and pest inspection may set you back around $1000 but they can potentially save tens of thousands of dollars if they uncover any issues.
The Auctioneer (if buying at auction):
In Melbourne and Sydney, the auction is the most common way properties sell. It is also becoming increasingly popular in the rest of Australia so it pays to go to auctions to get a feel for how they work.
The auctioneer manages the auction process, takes bids and encourages competition. They enforce the rules and can even eject people from the auction process if they fail to comply.
Charismatic, fast-talking and masters of human behaviour, they know how to read bidders and get them to react.
The auctioneer is there to facilitate the sale and achieve the best price for the vendor.
Tiny Mighty Property Guide 