A step-by-step guide to buying a first property

Davis said the very first step for first-time property buyers is to get their finances in order and determine what they can afford.

“Engage a broker or someone directly through the bank and just get started on your finances, which can take up to a couple of months depending on paperwork and income and pay slips, and whether you’ll need a family guarantor or first home buyer grants,” he said.

Davis said first-time buyers can attend open homes to get a sense of which areas fit their budget and lifestyle.

“It’s also good to meet some real estate agents and get a bit of a feel, knowing that you are in a position to buy.”

“But it’s also good to get out and just have a look,” he said.

2. Apply for pre-approval

Once buyers understand what their finances allow, Davis said getting pre-approval from a bank or broker is essential to purchase with confidence.

He said that having finances in order is crucial, as lenders factor in income, expenses, and liabilities to assess eligibility.

“If you were looking at buying a property or going to a property that was for auction, it wouldn’t be a good idea to go sign a contract on a property without some sort of approval from the bank,” Davis said.

A pre-approval generally lasts 90 days, but Davis warned home buyers not to stress or feel forced to buy during this time frame, as they can always reapply.

“A lot of buyers, especially first-time buyers, may panic. Where you’ve got a pre-approval of 90 days, that’s okay, you do not need to bind that 90 days, so don’t rush anything. If it lapses, you can apply for a re-pre-approval,” he said.

3. Inspect properties

After being pre-approved, prospective buyers will know how much they can afford to spend, which areas they can tap into, and what kind of property they can realistically buy.

They can then explore online listings or attend open inspections and property viewings to find one that is right for them.

“I think the first impression is important and then … the taste of the property and if it suits your needs and size and bedrooms and whatnot,” Davis said.

“If I’m looking at a unit, I’d look at the outside of the building just to make sure that [there’s] not rubbish everywhere, there’s not mattresses laying everywhere and cracks in the building.

“Again, it just depends on what type of property you’re looking for. Then you can identify if it’s going to be suitable or not.”

4. Do your due diligence

After finding a property that is right for them, home buyers are advised to read their strata report and contract an independent pest and building report to ensure there are no hidden issues.

“If you’re going inside the property and there are cracks on some gyprock or cracks on some of the brickwork, the agent may or may not know the answer,” Davis said.

“Therefore, you can rely on a building inspector to confirm how serious these issues are and then you can factor that into your price.”

In some cases, the real estate agent will already have the report available for buyers to access before committing to the property, but some buyers may also choose to conduct their own.

He said buyers will need to ultimately determine whether the costs of repairs are worth proceeding with the purchase of the property.

“You can factor that into your offer, and then you can decide if you want to continue purchasing that property or not,” Davis said.

Additionally, those looking to buy strata properties will need to purchase a strata report, which outlines essential details, including the history, condition, and legalities.

“Some buyers don’t do a pest and building (inspection) on a strata property, because strata normally covers anything on the building side of things,” Davis said.

Although not mandatory in strata properties, obtaining a pest and building report is recommended.

He added that it’s vital for buyers to arrange for a conveyancer or legal representative to review the details of the strata report and pest and building reports.

“There’s a good chance you may not know how to read it, which is completely okay, but I would be having an expert look over it for you, just to identify if there’s any major problems or not,” he said.

5. Make an offer

If first-time buyers have followed all the previous steps and are satisfied with the property, assuming it’s not an auction, they can proceed to make an offer through the agent.

“My advice would be to send the agent a text message or a written email to formally submit an offer of what they would like to offer,” Davis said.

“Therefore, that would be in the hands of the agent to come back to you if that offer was accepted or not.”

If the offer is accepted, the buyer would put down a 0.25 per cent deposit and then would sign a contract that includes a five-day cooling-off period.

A cooling-off period represents the short time frame after signing a property contract during which a buyer can cancel the purchase without major penalty, usually for a small fee.

However, in some cases, such as an auction or negotiations, the cooling-off period can be waived.

“If the property is sold via auction or via a non-cooling-off period sale, your solicitor or conveyancer would have to make some adjustments prior to signing the contract,” Davis said.

“So either way, before you commit to anything, I would have my legal representative just to make sure that everything is OK, which allows me to be in a position to sign that contract.”

Davis said that in times of high demand, buyers may have to consider committing to the sale without a building inspection to ensure they secure the property.

“We often come across many buyers who unfortunately miss out in circumstances like that or miss out through auctions … sometimes you have to go through that cycle of going to an auction or missing out or, or being too late for an offer,” Davis said.

A copy of the contract would be supplied to the bank or broker to formalise the sale, and there will often be a 42-day settlement period.

“In that settlement period, that’s when the legal side of things will formalise everything that is needed for the sale in order to complete the settlement, which then for you would be the new home owner,” Davis concluded.

6. Enjoy your new life as a property owner

On settlement day, the new owner receives the keys, with only a few tasks remaining, such as updating their postal address and notifying the strata committee if applicable.

Aside from these, the owner can now sit back and enjoy their new property knowing the hard part is over.

“There’s nothing more that I look forward to than people settling on their home and they’re coming to the office, and they’re picking up the keys and a gift,” Davis said.

“We often see some buyers when we meet them at the property, and we allow them to open the door.

“It’s so rewarding because it’s such a massive moment in someone’s life. And it’s just a very special thing,” he concluded.

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