Note: This process is only applicable if you are a PR holder or Australian citizen.

In the previous topic, Trusted Finance shared about 5 main factors you need to prepare before buying a property, especially for pre-approval (please review here). Those are the prerequisites before you start the property buying process. Here are the next steps of the property buying process:

  1. Find your right property
  • Searching technique: There are many ways to find a suitable property, such as via real-estate agent website:;; … or better than that is to meet and get to know real estate agents of the area you want to buy, to stay informed about the best real estate. For the selection process to be effective, Trusted Finance recommends you to give as much detail as possible about the house you want to buy, so that the agent can select the models that best suit your wishes, rather than sending as lots of random models to you, which eventually made you upset. (Hint: You can choose email instead of phone calls as a way to communicate between you and the agent, to avoid causing unnecessary negative emotions!)
  • Choosing tips: Because everyone has different interests, uses and needs, there is almost no common standard for everyone. However, you should consider the first important factor, do not be dominated by many other secondary factors. For example, if you buy a property to live in, then prioritize criteria such as, it should locate in your favourite area or close to your family or friends’ house, or your workplace. If you have children, safety will go first, etc. For investors, there will not be so many “standards”, as long as the area is profitable and affordable, then you should buy it. “Know what you want” is the top secret when choosing a property!
  1. Valuation: After the first step, now is the time to start negotiating prices. Firstly, you must know how the bank valuate your property. Trusted Finance can help you to check it with the bank, so you can have a sense of the property’s true value, and the price to expect. Base on that, you will be able to calculate the amount of money to prepare to buy this house (it needs to suit your financial capacity).
  2. Find a legal representative: You need a conveyancer / solicitor / lawyer to act as your legal representative in this purchasing process. You will have to send the draft contract to the Legal representative to check whether it is okay or not, especially the Section 32 vendor’s statement, Issues related to the house dispute (if any); Special provisions (if any) … The legal representative can even help you check things, such as: The validity of the drawing board and the construction permit; deadlines and values, Possibility to renew…
  3. Negotiate pricing: After you have calculated the property’s value and found a legal representative, you can negotiate a price with the landlord.
  • Private sales: With private sales, the buyers will offer the price they want to pay, together with the conditions attached. The vendor will accept or take the offer. If your offer is accepted, the vendor will notify other buyers to see whether there is anyone wants to bid higher. If not, the vendor will only negotiate with you and finalize the terms and offers to proceed signing contract.
  • Auction: Buyers who are interested at the property will need to participate at its auction opening. The person offering the highest price, will have the right to buy the property and can proceed to sign contract. However, if you win at the auction, you will not be eligible for cooling off period, nor get the deposit money back if you can’t get the loan from the bank. Therefore, you need to have a pre-approval prior to the auction to avoid this from happening. In addition, you should also conduct a house quality inspection before the auction if the property is not brand new, especially if you intend to get it repaired, quality inspection is necessary because you need to estimate the cost of renovation and ensure you are financially capable.
  • EOI (Express of interest): With this form of negotiating, all buyers need to fill in the contract to send a “Request of negotiating” to the real estate agent. You should seek for legal representative’s advices when fill in the contract to fully understand it: For example, if you are not financially ready, you need to check the “Subject to finance” box to make sure you will get your deposit money back once the bank refuses your loan application; or “Decision of cooling off period”, etc. Besides, you can fill in many other conditions, such as: “Only pay for the property if it meets the building inspection quality”; or When you receive the property, vendor needs to finish gardening, cleaning the garbage, etc. Depending on the real estate agent, the process of receiving and processing the offer will be different. Usually, people who want to buy a house must send their offer to the agent before a certain deadline. After the deadline has expired, the agent will stop accepting offers and start reviewing all offers. Depending on the vendor, there will be an additional round (round 2). In the second round, selected buyers can increase the offer, so that the host and agent consider selecting a final buyer to negotiate on the contract. There are also a few agents that will open and view all offers and choose only the highest offer to negotiate the contract.
  • In addition to the above methods, there is another form called off market sale. This method only applies when you have a broad relationship with local agents, you can buy the house you want even before it gets promoted (and even at a cheaper price). Besides, the offer terms and exchange could be more flexible.
  1. Deposit: After successfully negotiating the price and signing contract, you will have time to deposit a sum of money (usually 10% of the value of the property) into a trust account of the real estate agent.
  2. Send the official contract to legal representative and broker: The official contract is a contract signed by the buyer and seller. After your legal representative receives the contract, they will start working with the involving parties. Trusted Finance can help you to send the official contract to the bank to apply for your loan. The bank will review the contract one more time to ensure the validity before proceeding to review the loan.
  3. Receive loan approval from the bank: After the bank agreed to lend you money, Trusted Finance and your legal representative will conduct the process and work with involving parties, you just need to provide additional documents or pay any fees (which were listed in our previous article), following the detailed instructions of Trusted Finance and your legal representative.
  4. Final house inspection: Before receiving the property, you can book a review appointment with the real estate agent to make sure it meets all standard conditions stated in the contract. If necessary, you can request a building inspection session. If there is any problem, for example, garbage in the house has not been cleaned up, you can report it to your legal representative who will discuss with the vendor’s legal representative to solve the problem. When you agree on everything, you can notify the legal representative to make payment to the bank and the seller’s legal representative. The current payment mostly takes place via the online system (PEXA).
  5. Receive the property: After successful payment, the real estate agent will hand over the house’s key to you, and…Congratulations! The property is now yours! Be proud of yourself!

Disclaimer: This article is for general reference only. Trusted Finance will not be responsible for the consequences that may occur when applying these knowledge without consulting with industry experts.


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