Question 1

Auction vs private treaty — what's the difference?

Accepted Answer

Private treaty is a negotiated sale at a price (or price guide) set by the vendor, with offers submitted in writing. Buyers usually get a cooling-off period and can include conditions (finance, building & pest). Auction is a public bidding event where the highest bid above reserve wins — contracts are unconditional on the fall of the hammer in most states, with no cooling-off and no finance clause. Auctions favour confident, prepared buyers.

Question 2

How do I make an offer and what should I include?

Accepted Answer

Offers are made in writing on the contract of sale (or via the agent's offer form, which is usually then formalised on the contract). A complete offer states the price, deposit amount, settlement period, finance condition (if any), building & pest condition (if any), special conditions (e.g. subject to property selling), and any inclusions (chattels, fixtures). Conditions reduce price competitiveness, so weigh them carefully.

Question 3

What are the cooling-off periods by state?

Accepted Answer

Cooling-off periods (when the buyer can rescind for a small penalty) vary by state and are subject to change — verify before relying on them. Typical settings: QLD: 5 business days. NSW: 5 business days (waivable with a Section 66W certificate). VIC: 3 business days. WA: no statutory cooling-off (buyer relies on conditions). SA: 2 business days. TAS: no statutory cooling-off. ACT: 5 business days. NT: typically negotiated. Auction purchases generally have no cooling-off in any state. Always check the contract and the current state legislation.

Question 4

What auction strategies actually work?

Accepted Answer

Set a hard ceiling and write it down before the day. Bid in confident round numbers, not micro-increments. Bid quickly — hesitation signals weakness. Avoid playing 'who blinks' games near reserve; they usually push the price up. If you're unprepared or emotional, hire a buyers agent to bid for you — professional bidders are unemotional and read the room better than first-timers.

Question 5

What's in a contract of sale and what do I need to check?

Accepted Answer

Standard contracts include the parties, property description (lot/plan), price, deposit, settlement date, special conditions and inclusions/exclusions. Always have your solicitor or conveyancer review BEFORE you sign, not after. Watch for: vendor disclosure statement (VIC Section 32), zoning, easements, encumbrances, body corporate documents (units), special levies, and any unusual special conditions inserted by the vendor.

Question 6

Conveyancer vs solicitor — who do I need?

Accepted Answer

Conveyancers handle straightforward residential transactions and are typically cheaper. Solicitors are required (or strongly preferred) for more complex matters: trust or company purchases, SMSF acquisitions, off-the-plan, properties with unusual title issues, or where contract negotiation is contentious. We recommend solicitors for any structured purchase.

Question 7

What happens if the bank's valuation comes in below the contract price?

Accepted Answer

If you have a finance clause and the valuation gap means the lender won't fund, you can usually terminate or renegotiate. Without a finance clause (e.g. auction purchase), you must make up the shortfall in cash, source additional finance, or risk forfeiting the deposit. Pre-auction valuations from your broker reduce this risk. A second valuation through a different lender sometimes solves it.

Question 8

What due diligence should I do before signing or unconditional?

Accepted Answer

Building & pest inspection. Pool/safety compliance certificate. Strata/body corporate records (units): minutes, financial statements, insurance, special levies. Title search and plan. Council planning checks: zoning, overlays, building approvals, easements, road widening. Flood map and bushfire overlay. Insurance quote (some properties are uninsurable in flood/cyclone zones). Rental appraisal if investing.

Question 9

What building & pest findings are deal breakers vs negotiable?

Accepted Answer

Deal breakers: significant structural movement, active termite damage, major non-compliant work, severe asbestos in poor condition, or major water ingress with structural impact. Negotiable: cosmetic issues, ageing roof, minor settlement cracking, dated kitchen/bathroom — these justify price adjustments, not walking away. Our buyers agency engagement coordinates inspections and assists with renegotiation if findings warrant.

Question 10

What should I look for in strata or body corporate records?

Accepted Answer

Sinking fund balance (rule of thumb: at least 6–12 months of body corporate fees per lot). Pending special levies. Recent significant works completed or proposed. Insurance currency and adequacy of cover (particularly for high-rise or flood/cyclone zones). Defect history. Litigation history. Pet policies, short-stay restrictions and management contracts. A lazy committee or under-funded sinking fund is a long-term cost risk.

Question 11

What happens on settlement day?

Accepted Answer

Your conveyancer/solicitor and the bank exchange funds via the PEXA electronic settlement system. The vendor's bank discharges its mortgage, your bank registers your mortgage, ownership transfers on title, and rates/water are adjusted between vendor and buyer. You receive the keys (usually from the selling agent) once settlement is confirmed. Insurance should be in place from the moment you go unconditional, not settlement.

Question 12

What's a typical settlement period?

Accepted Answer

30, 45, 60 or 90 days are most common — agreed in the contract. 30 days is tight for finance and building & pest. 60 days is standard. Longer settlement periods can be a negotiation tool with vendors who need time to find their next home, or with investors who want time to arrange finance.

Question 13

What happens if settlement is delayed?

Accepted Answer

Standard contracts allow a small grace period (often 5 days). Beyond that, the party at fault pays default interest to the other. Common causes of delay: bank settlement system errors, missing documents, last-minute valuation issues, or vendor-side discharge problems. A good conveyancer flags risks early and chases resolutions.

Question 14

What do I need to do after settlement?

Accepted Answer

Confirm building insurance is active. Set up direct debits for council rates, water, body corporate. If investing: appoint a property manager, get a depreciation schedule from a quantity surveyor (worth doing in year one), update your tax records, lodge a PAYG variation if you want to access negative gearing benefits during the year rather than at tax time.

Fromfirstoffertosettlementday.

Offers & auctions

Contracts & conveyancing

Due diligence

Settlement & keys

The Negotiation & Offer Strategy Playbook

First Home Buyer Settlement Checklist

The 15-Minute Suburb Scorecard

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