Buying a property involves a lot of decisions, often compressed into a surprisingly short period of time. The easiest mistakes happen when you feel pressure to move quickly, before you've checked the contract, understood the costs or worked out what happens if something doesn't go to plan.
Most pitfalls aren't mysterious. They're usually things a buyer could have understood earlier, if they knew what to look for. These are the ones that come up most often.
Committing before understanding the contract
The contract sets out the legal terms of the purchase, so understanding it before you commit is important. Depending on the transaction, there may be conditions, special terms, inclusions, dates and other provisions that affect your rights and obligations.
Having the contract reviewed by an appropriately qualified conveyancer or solicitor can help you understand those terms and identify issues that may need to be clarified or negotiated. A review can help identify important terms, potential issues and questions to resolve before you commit. See getting your contract reviewed before you sign.
Skipping relevant due diligence
Depending on the property and transaction, building and pest inspections can help identify issues that aren't obvious during a normal inspection. Understand what inspections are appropriate, when they need to happen and whether the contract gives you any rights if an issue is identified.
Skipping checks that were available to you can mean unexpected repair costs later. See what a building and pest inspection looks for and finding and assessing a property.
Letting urgency replace checking
Property searches can create a strong sense that you need to act immediately, particularly when there is competition or a deadline to make an offer. Speed can matter in property, but it shouldn't mean skipping the checks you need to make an informed decision.
Know what you can still check, what deadlines apply and what you're agreeing to before you commit.
Letting the property change your budget
It's easy to decide what you can afford in the abstract and then change the number when you find a property you really want. Before making an offer or bidding, understand your maximum purchase price, the buying costs and the financial buffer you want to retain.
If the property doesn't fit, changing the number should be a deliberate financial decision, not simply a reaction to not wanting to miss out. See sticking to your budget and what if you can't find anything in budget.
Assuming finance is guaranteed
Pre-approval is not the same as final loan approval. The lender may still need to assess the particular property, the final application and other circumstances before the loan is formally approved. A valuation can come in lower than expected, and a change in your financial circumstances can affect the outcome.
Don't assume a pre-approval means every property you bid on will automatically be financeable. See borrowing capacity vs purchase price and stress-test your budget.
If your contract includes a finance condition, understand exactly what it requires, when the condition must be satisfied and what happens if finance is not approved within the relevant timeframe. See offer, contract and conditions.
Looking at the house instead of the whole transaction
A property is more than the building you can see at the inspection. The contract, title, relevant searches, strata or body corporate records, planning considerations and ongoing costs can all affect what you're actually buying.
Strata and body corporate. If you're buying a strata, body corporate or owners corporation property, don't assess the apartment or townhouse in isolation. The building's financial position, planned works, levies, disputes and other records can affect what you're buying into. The documents and inspection process vary by state and property type, so understand which records are relevant before you commit. See buying into strata, body corporate or owners corporation.
Tenancies. If the property is currently rented, don't assume the tenant will have left by settlement. Check the tenancy arrangements and understand whether the contract provides for vacant possession or the tenancy continuing. If vacant possession matters to you, make sure the position is clear before you commit.
Assuming you're eligible for a grant or concession
Government grants, concessions and assistance schemes can have specific eligibility requirements, including property value, previous ownership, residency and timing requirements. Eligibility can also vary between states and territories, and schemes can change.
Check the current eligibility rules before relying on a concession when setting your budget or deciding whether to proceed.
Treating settlement as the end of the work
Settlement is the point where the transaction is completed, but it isn't the end of the financial commitment. Before buying, understand the costs and practical responsibilities that begin once you own the property, including regular bills, maintenance and unexpected expenses.
Keep some financial breathing room for those costs. See budget for all the buying costs, common settlement adjustments and are utilities adjusted at settlement?
When funds are moving, be alert to conveyancing payment scams and confirm account details through a channel you trust.
The process varies by state
The broad buying journey is similar across Australia, but the legal rules around contracts, cooling-off, conditions, deposits, settlement and concessions vary between states and territories.
Don't assume that something you read about a property purchase in another state applies to yours. Check the rules that apply to the property you're buying and the contract you're signing.
The common thread
Most buying pitfalls aren't about failing to know every rule. They're about making an important decision before you have the information you need.
Take the time to understand the property, the contract, the costs and what happens next. Good conveyancing should help you do exactly that, before a problem becomes difficult or expensive to fix.
