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Your Complete Guide: Property Purchase Steps in the Right Order
Most buyers follow this order: Agent → Pre-approval → House hunting → Offer → Close. They often skip the key property check steps. This buying a house checklist fixes that.
Smart buyers know the right sequence: Market check → Money setup → Pre-approval → Smart search → Property check → Careful offer → Close. Your buying a house checklist should cover all these phases. Include full property check steps.
The difference? Following the correct order saves an average of $19,400.
Steps 1-3: Should You Buy Now? (Week 1)
Step 1: Check the Market
Is it a buyer's market or seller's market? Talk to agents. Review market reports. Check how long homes take to sell. These are key steps. If you're buying your first home, start with our full first time home buyer guide. It covers the full process from your true budget to government schemes. Market timing alone can save you thousands.
If the market strongly favours sellers, consider waiting. Add this to your checklist.
Step 2: Rent vs Buy Calculation
Include all costs:
- Lost earnings on your deposit
- Maintenance (1-2% of home value yearly)
- Council rates and insurance
- Buying and selling costs
If breaking even takes 7+ years, and you won't stay that long, renting might be smarter. Use our property investment calculator to model the real numbers.
Step 3: Check Your Financial Health
- Credit score 740+? You'll get the best rates
- Credit score 640-739? Good rates available
- Credit score below 640? Spend 6-12 months improving first
Don't start house hunting before knowing your position. This is essential preparation.
Steps 4-8: Get Your Money Right (Weeks 2-4)
Step 4: Decide on Deposit Size
These options determine your mortgage choices:
- 20% deposit: Best rates, no mortgage insurance
- 10-15% deposit: Good rates, some mortgage insurance
- 5% deposit: Programs available, higher insurance costs
Calculate which makes sense for your situation.
Step 5: Get Pre-Approval (Not Pre-Qualification)
These sound similar but are completely different:
Pre-qualification (NOT what you want):
- Quick estimate based on what YOU tell the bank
- No document verification
- No credit check (or only soft pull)
- Takes 10-20 minutes online
- Worth nothing - sellers don't trust it
Pre-approval (what you actually need):
- Bank verifies your income, employment, assets, debts
- Hard credit check
- Conditional approval subject to property valuation
- Takes 2-5 days with documentation
- Sellers take you seriously - shows you're a real buyer
Shop 3-5 lenders. A 0.25% rate difference costs $15,000+ over 30 years.
Step 6: Set Your Real Budget
Banks approve you for the maximum. Don't use it all.
Keep housing costs under 28% of your income. Build in a 15-20% buffer for surprises.
Step 7: Confirm Your Cash Reserves
Beyond the deposit, you'll need:
- Settlement costs (2-5% of price)
- Moving costs ($2,000-$6,000)
- Immediate repairs ($3,000-$8,000)
- 6-month emergency fund
- Property check and inspection costs ($400-$800)
Missing these reserves? You'll be stressed and stretched.
Step 8: Check First Home Buyer Programs
Check firsthome.gov.au for grants and assistance. See our guide on government home schemes for more details. Programs can provide $5,000-$15,000 in help. You have to apply.
Steps 9-15: The Search Phase (Weeks 5-10)
Step 9: Make Your Must-Have List
Limit must-haves to 5 items. Everything else is negotiable. These priorities focus your search. Know what to look for buying house before viewing. Watch for critical red flags buying house warning signs. Learn the 31 deal-breakers that signal structural failures, safety hazards, or hidden costs averaging $43,000 in surprise repairs.
Too many must-haves = impossible search.
Step 10: Research Neighbourhoods (Property Check Essential)
Before viewing homes, research 3-5 target areas and complete your property check research. This step is critical for your house hunting checklist:
- Crime rates (property check safety data)
- School ratings
- Council development plans (property check for future developments)
- Transport options
One couple found their "dream area" had falling values. They switched to a nearby area and gained $67,000 in equity in 3 years. Their property check of council plans showed weak spending. Smart buyers track major works 2-4 years before they finish. They buy before prices rise. A good property check saves thousands.
Step 11: Learn Listing Language
- "Cosy" = Small
- "Needs TLC" = Major repairs
- "Motivated seller" = Room to negotiate
- "Priced to sell" = Was overpriced before
Step 12: Pre-Screen Online
Use virtual tours and photos to cut bad options. Look for red flags. Review our home inspection checklist 156 items to know what to check. This stops costly mistakes. Save time for serious options.
Step 13: View Properties (Max 5-7)
Use your house hunting checklist at each viewing. Take photos and notes. Never view more than 3 in one day. Tiredness leads to bad decisions. Review apartment-specific tips if you're considering apartments.
Step 14: Compare Properties
After tours, score each property against your criteria. Use a spreadsheet. Research comparable sales to understand fair pricing. Your house hunting checklist notes make this comparison objective.
Step 15: Research the Seller
How long has it been listed? Any price drops? Why are they selling? Prepare your questions to ask when buying a house before making an offer.
This shapes your offer strategy.
Steps 16-19: Making an Offer (Weeks 11-13)
Step 16: Set Three Price Points
These price levels are critical:
- Market value: Based on recent sales and property check data
- Competitive offer: 2-6% above market value
- Maximum: Based on what you can afford long-term
Never go above #3.
Step 17: Plan Your Conditions
Standard conditions: inspection, finance, valuation.
Strategic buyers remove conditions they've already satisfied.
Step 18: Present Your Offer
Combine strong finances with a personal touch. Show pre-approval. Be flexible on settlement dates.
Step 19: Negotiate
Be ready to negotiate on:
- Price
- Settlement costs
- Repairs
- Included items
- Settlement date
Know when to walk away.
Understanding Contract Conditions: Sunset Clauses
After you sign a contract, you're not fully locked in. Aussie property contracts have conditions that let you exit if things go wrong.
Standard conditions (your safety net):
- Finance condition (14-21 days typical) - If bank denies your loan, you can cancel and get deposit back
- Building inspection condition (7-14 days typical) - If inspection finds major issues, you can exit or renegotiate
- Valuation condition (included with finance) - If bank values property lower than purchase price, you can renegotiate or exit
Sunset clause (key for off-the-plan buys): A deadline by which the property must be finished. If the builder delays past this date, you can walk away and get your full deposit back. But builders can trigger it on purpose in rising markets. They cancel your deal and resell at a higher price.
Protection: Negotiate sunset clause of 12-18 months (not 3-5 years). Shorter deadline reduces developer manipulation risk.
Steps 20-23: Settlement (Weeks 14-18)
Step 20: Get a Professional Inspection - Essential Property Check
Never skip this ($400-$600 cost). This expert check covers the base, power systems, and roof. Attend in person. Ask questions. Check that property edges are marked and match title papers.
Use property check findings to renegotiate or walk away. The inspector will check property systems, structure, and boundaries.
Step 20b: Order Asbestos Testing (For Pre-1990 Homes)
If the property was built before 1990, you need a separate asbestos inspection. This is not included in standard building inspections.
Why this is critical:
- 80% of pre-1990 Australian homes contain asbestos
- Standard building inspectors note "suspected asbestos" but don't test
- Asbestos presence severely limits renovation options
- Removal costs $5,000-$50,000+ depending on extent
What asbestos testing covers ($150-$400):
- Sample collection from suspected materials
- Laboratory analysis
- Written report identifying all asbestos locations
- Photographic documentation
Common asbestos locations in Australian homes:
- Wall/ceiling insulation (especially fibro walls)
- Roof materials (cement sheeting)
- Bathroom/laundry walls
- Garage and fence materials
- Under eaves
Timeline impact: Add 1 week for asbestos testing. Testing takes 3-5 business days for lab results.
Step 21: Handle the Valuation
If the valuation is low, you can:
- Renegotiate price
- Increase your deposit
- Challenge with comparable sales data
Step 22: Final Walkthrough - Final Property Check
72 hours before settlement, complete your final property check:
- Check property condition unchanged
- Confirm repairs completed
- Verify included items present
- Check property boundaries are clearly marked (if applicable)
This final property check is your last exit opportunity.
Step 23: Review Settlement Documents
3 days before settlement, review all documents:
- Loan terms match approval
- No surprise fees
- Rates calculated correctly
Have your conveyancer explain anything unclear.
Quick Reference: Buying a House Checklist
Before You Start
- [ ] Check credit score
- [ ] Calculate rent vs buy
- [ ] Research market conditions
Financial Setup
- [ ] Get pre-approval from 3-5 lenders
- [ ] Set realistic budget
- [ ] Confirm cash reserves
- [ ] Check first home buyer programs
The Search Phase
- [ ] List 5 must-haves maximum
- [ ] Research 3-5 neighbourhoods
- [ ] Pre-screen online
- [ ] View 5-7 serious candidates
- [ ] Compare using spreadsheet
Making an Offer
- [ ] Research comparable sales
- [ ] Set three price points
- [ ] Prepare conditions
- [ ] Know your walk-away point
Completing Purchase
- [ ] Professional building inspection
- [ ] Review valuation
- [ ] Final walkthrough
- [ ] Review settlement documents
The Bottom Line: Your Complete Guide for Success
Using a systematic buying a house checklist prevents costly mistakes.
Following these 23 steps takes longer than rushing in. But buyers who follow this buying a house checklist close faster, pay less, and avoid costly mistakes. Build in safeguards so you don't miss incentives.
Purchasing property is easier when you know the red flags and due diligence steps. Use those insights with these steps to stay in control.
This buying a house checklist is your defence against expensive errors.
House Hunting Checklist: How to Check Property Effectively
Your house hunting checklist should go beyond this buying process guide. When you physically inspect properties, you need a systematic approach to check property condition thoroughly.
House Checklist for Viewing Properties
Before every inspection, use this house checklist to check property essentials:
- Structural integrity - Look for cracks in walls and ceilings
- Water damage - Check for stains on ceilings and around windows
- Electrical systems - Test light switches and power points
- Plumbing - Run taps and flush toilets during your visit
- Natural light - Visit at different times to assess lighting
- Storage space - Check wardrobes, cupboards, and garage
Check Property During Your House Hunting
A thorough property check reveals issues that photos hide. Your house hunting checklist should prompt you to:
- Check property boundaries - Walk the perimeter to understand lot size
- Inspect the roof - Look for missing tiles, rust, or sagging
- Test noise levels - Visit during peak traffic hours
- Assess privacy - Check neighbouring windows and proximity
Use this inspection guide at every property you view. Document your findings in notes or photos. This systematic approach helps you compare options objectively and strengthens your house hunting checklist.
Your Complete House Hunting Checklist
Outside the property:
- [ ] Foundation visible and stable
- [ ] Gutters and drainage functional
- [ ] Fencing and boundaries clear
- [ ] Driveway and paths in good condition
- [ ] Garden manageable size
Inside the property:
- [ ] All rooms accessible
- [ ] Windows open smoothly
- [ ] Floors level and solid
- [ ] Adequate power points
- [ ] Hot water working
This house hunting checklist ensures you check property thoroughly before making any offer. A detailed inspection prevents costly surprises after purchase.