Module 08The Buying & Selling Process

Buying property is a sequence. Miss a step and it can cost you the deal.

Sam's about to make her first offer. She knows she wants the place — what she doesn't know is what happens next, and in what order. This module maps the whole process, from preparation to post-settlement, and flags where it commonly goes wrong.

The goal isn't zero surprises — it's making sure none of them were avoidable.

New here? Ava can guide you through each scene aloud — press Listen, or just read.

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§ 02 Before you look

The prep most buyers skip.

Fig. 01 Get these in place first

1

Finance pre-approval — before looking, not after. It's conditional on the property valuing up, and usually expires in ~90 days.

2

A shortlist of building & pest inspectors — finding one the day before is how inspections get rushed.

3

A conveyancer engaged before you offer, so contract review is fast.

4

Suburb research done before inspections, not during.

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§ 03 Offer — private sale

Informal, until the moment it isn't.

Fig. 02 Offer → exchange

01

Offer to agent

02

Accept / counter

03

Sign + 10% deposit

04

Cooling-off begins

05

Exchange — committed

Use cooling-off to finish inspections, get the contract reviewed, and confirm finance is going unconditional. Withdraw and you forfeit ~0.2–0.25% — small against the risk of buying uninspected or unfinanced.

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§ 04 Bidding at auction

Set your number before the adrenaline hits.

Fig. 03 Auction day

✓

Everything — finance, inspections, contract — done before the day.

✓

Register to bid (ID required). Decide your maximum beforehand and commit.

✓

Bid confidently, in round numbers. Vendor bids (to reserve) are normal.

✓

Passed in below reserve? The top bidder usually gets first negotiation — a strong spot if you're finance-ready.

Post-auction negotiations often land a better price than the competitive bidding itself.

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§ 05 Exchange → settlement

An active period — not a waiting one.

Fig. 04 The 30–90 days in between

›

Lender does a formal valuation — if it's below your price, you fund the gap or renegotiate.

›

Conveyancer runs searches — title, rates, land tax, water.

›

Final loan documents signed.

›

Pre-settlement inspection — your right in most states. Use it.

Insure from exchange, not settlement

You carry the risk of loss on the property from exchange — so building insurance must be in place from that date, not from when you get the keys.

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§ 06 Settlement day

It happens without you in the room.

Fig. 05 Funds & title change hands (via PEXA)

01

Loan drawn down

02

Balance paid to vendor

03

Title transferred to you

04

Agent releases keys

What can go wrong

Bank funding delays (can incur penalty interest), last-minute title issues, or rates the vendor was meant to clear. Your conveyancer manages all of it — which is why you pick one on communication and experience, not just price.

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§ 07 The day after

Set it up like an investor, not a first-timer.

Fig. 06 Post-settlement admin

1

Notify the property manager — advertise or transition the tenant.

2

Separate bank account for the property — clean income/expense split for tax.

3

Engage an accountant; order a depreciation schedule if new/near-new — year one claims the most.

4

Direct debit the mortgage; file every purchase document for the eventual CGT cost base.

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§ 08 Selling, one day

Every investor eventually sells.

Fig. 07 What selling involves

Agent commission

interview at least 3 · negotiable

~1.5–2.5% +GST

Marketing campaign

usually vendor-funded

$3,000–$8,000

Method of sale

private treaty · auction · EOI

depends

Timeline

campaign + settlement

~4–6 wk + 30–90 d

The agent represents the vendor — their duty is the best price for the seller. Fees come out at settlement, and CGT is payable in the financial year of settlement.

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§ 09 Where it goes wrong

The avoidable mistakes, by stage.

Fig. 08 Failure points

Pre-purchase

looking with no pre-approval; no inspector lined up; suburb on gut feel

avoidable

Offer & exchange

no inspection done; not reading the contract; missing cooling-off expiry

avoidable

Before settlement

no insurance from exchange; skipping the pre-settlement inspection

avoidable

Settlement

not checking the settlement statement before funds release

avoidable

After

no accountant; missed depreciation window; no separate banking

avoidable

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§ 10 Sam's timeline

One purchase, run as a project.

Sam

Beginner investor — following along

Fig. 09 Eight weeks, start to keys

Week 1

Prep: suburb research, conveyancer & inspector engaged, pre-approval in place.

Week 2

Inspections; offer submitted.

Week 3

Negotiate; contract signed; deposit paid; cooling-off begins.

Week 4

Building & pest done; finance confirmed; contract reviewed; cooling-off expires.

Weeks 5–8

Settlement period — valuation, searches, loan docs.

Week 8

Pre-settlement inspection; settlement; keys.

Week 9

Property manager engaged, account set up, accountant briefed, depreciation ordered.

Treat it as a project

A purchase is a defined sequence of tasks and deadlines. Run it like a project and you eliminate nearly all the preventable failures.

Ava

Module 08 complete

You know the whole sequence now.

Prep, offers, auctions, the settlement period, the day itself, post-settlement admin and selling. Next: building a portfolio.

Continue to Module 09 All modules