Navigating the Buying Process: A Step-by-Step Guide to Buying a Home in Australia (Especially for First Home Buyers)

Buying a home is one of the biggest milestones in life — and one of the biggest financial decisions you’ll ever make.

For many first home buyers, the process can feel overwhelming. Between finance, inspections, legal contracts, price guides, auctions and confusing advice from different people, it’s easy to feel like you’re constantly one step behind.

The good news? Once you understand the process, it becomes far less intimidating — and much easier to make confident decisions.

This guide breaks down the home-buying journey in Australia step-by-step, so you know exactly what to do, when to do it, and what to watch out for.

Step 1: Define Your Goals (and Your Non-Negotiables)

Before you look at a single listing, get clear on what you actually want.

Start with:

• Your ideal location (and what you’re willing to compromise on)

• Property type (house, townhouse, apartment, unit)

• Must-haves (bedrooms, parking, outdoor space, school zone, etc.)

• Deal-breakers (busy roads, strata fees, major renovations, steep blocks, etc.)

• Lifestyle needs (commute, walkability, access to shops, parks, family)

A huge part of buying well is knowing what matters most — so you don’t get distracted by “nice-to-haves” that cost you tens of thousands.

Step 2: Set a Realistic Budget (and Include All Costs)

Many buyers only think about the purchase price — but the total cost of buying includes much more than that.

You should budget for:

• Stamp duty (or concessions)

• Conveyancer / solicitor fees

• Building & pest inspections

• Bank fees and mortgage registration

• Lenders Mortgage Insurance (if applicable)

• Insurance (home + contents)

• Moving costs

• Repairs and maintenance after purchase

Tip: Your maximum borrowing capacity isn’t always your best buying budget. The goal is to buy comfortably — not stretch yourself so tight you can’t breathe.

Step 3: Speak to a Mortgage Broker (and Get Pre-Approval)

Before you seriously start inspecting properties, it’s worth speaking to a mortgage broker and getting clarity on:

• How much you can borrow

• Your deposit requirements

• Your likely repayments

• Your options (fixed vs variable, offset accounts, etc.)

• Whether you’re eligible for first home buyer schemes

Pre-approval helps you:

• Understand your true price range

• Make offers confidently

• Move quickly when the right home comes up

Step 4: Check First Home Buyer Grants & Schemes (This Matters)

If you’re a first home buyer, it’s essential to check what you may be eligible for.

Depending on your state and your circumstances, you may qualify for:

• First Home Owner Grant (FHOG) (often for new builds)

• Stamp duty concessions or exemptions

• First Home Guarantee Scheme (buy with a smaller deposit, without LMI)

• Regional first home buyer benefits (in some states)

• Shared equity schemes (state-based)

These can save you tens of thousands — but eligibility rules can be strict, and they vary by state.

A good broker can help you navigate this properly.

Step 5: Research the Market (Not Just the Listings)

A common mistake is relying too heavily on the asking price or agent guide.

Instead, focus on:

• Recent comparable sales (the last 3 months)

• Market conditions (hot, steady, softening)

• Days on market

• Auction clearance rates (where relevant)

• What buyers are actually paying

In many parts of Australia, price guides can be misleading. Knowing the true market value is one of the best ways to avoid overpaying.

Step 6: Start Inspecting Properties (and Take Notes)

Once you begin inspections, it’s important to view homes strategically — not emotionally.

Look at:

• Orientation and natural light

• Layout and functionality

• Noise (traffic, neighbours, trains, dogs)

• Signs of water damage

• Cracks, movement, or damp

• Condition of roof, gutters, stumps/slab

• Electrical and plumbing quality

• Storage

• Parking

• Street appeal and the feel of the area

Tip: Take photos and notes after every inspection. After 5–10 opens, they blur together.

Step 7: Due Diligence (The Step That Protects You)

This is where buyers protect themselves.

Depending on the state and the property, due diligence may include:

• Contract review by your conveyancer/solicitor

• Building inspection

• Pest inspection

• If unit or townhouse ask agent about Strata / owners corporation fees and review any documents

• Flood, bushfire, or overlay checks

• Zoning and planning checks

• Title checks (easements, covenants, restrictions)

Important: Each state has different contract rules. For example, Victoria has specific requirements around Section 32 and auction conditions.

Step 8: Make an Offer (and Understand Conditions)

When you’re ready, your offer is usually made in writing and may include conditions such as:

• Subject to finance

• Subject to building & pest inspection

• Subject to contract review

• Settlement timeframe

In some states and in auction-style campaigns, buyers may be asked to offer unconditional, which increases risk. Unconditional means no finance or any other conditions.

This is why getting your legal and inspection team lined up early is so important.

Step 9: Negotiation (This Is Where Money Is Won or Lost)

Negotiation isn’t just about being “tough.” It’s about:

• Understanding the seller’s motivation

• Knowing the true value

• Choosing the right terms (settlement, deposit, conditions)

• Creating leverage

• Staying calm under pressure

A well-negotiated purchase can save you thousands — sometimes tens of thousands — even in a competitive market.

Step 10: Formal Finance Approval & Bank Valuation

Once your offer is accepted, your lender will:

• Order a valuation

• Confirm your documents

• Issue formal loan approval

This step can take days to weeks depending on the lender and your broker.

Step 11: Insurance and Pre-Settlement Checks

Before settlement, it’s wise to:

• Organise building insurance (some lenders require it)

• Book removalists

• Arrange utilities

• Complete a final inspection (pre-settlement inspection)

The final inspection ensures the property is in the same condition as when you purchased it.

Step 12: Settlement Day (You Get the Keys!)

Settlement is when the funds are transferred and the title is formally moved into your name.

Your conveyancer and lender coordinate this for you.

Step 13: Ongoing Costs of Homeownership

Owning a home comes with ongoing expenses, including:

• Council rates

• Water rates

• Insurance

• Maintenance and repairs

• Strata fees (if applicable)

• Utilities

A good rule of thumb is to set aside a buffer for unexpected repairs — because they always happen at the worst time.

Buying a home in Australia can feel complex — but with the right structure, it becomes manageable and even exciting.

The most successful buyers are not necessarily the fastest or the most confident.

They’re the ones who:

• do their research

• understand the contract rules in their state

• don’t overpay

• and make decisions with clarity, not pressure

Ready to Buy with Confidence?

If you’re buying your first home and want calm, honest support — from suburb selection through to negotiation and settlement — Walsh Brown Property can help.

Contact us today to discuss your goals and get a clear strategy in place.

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*** Disclaimer: The information provided in this blog is intended for general informational purposes only. While we have made every effort to ensure the accuracy and reliability of the content, it should not be considered as personalised or professional advice. The homebuying process can vary based on individual circumstances, property types, and location-specific regulations.