Fewer buyers does not mean fewer checks

Australia’s housing market has cooled, some open homes are quieter and vendor discounting has increased. Buyers may have more time to compare, but a reduced asking price is not a reason to skip the homework.

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Make four checks at today’s inspection:

1. Inspect the property, not the styling

Look for cracks, water marks, drainage, window condition, damp smells and heating or cooling issues. The furniture leaves; repair costs stay.

2. Ask about ownership costs

Along with repayments, allow for council rates, strata or body corporate fees, insurance, maintenance and possible special levies. Affording the price is not the same as affording the property.

3. Compare sales, not only asking prices

The asking price is the vendor’s expectation. Recent comparable sales provide stronger market evidence. If the bank valuation is below your offer, you may need to fund the gap yourself.

4. Recheck finance before offering

Confirm pre-approval conditions, deposit, stamp duty and settlement costs, while keeping an emergency buffer. A slower market gives you room to inspect properly; it does not make the budget unlimited.

This weekend, separate “Do I like it?” from “Can I afford it?” Complete the checks before deciding whether to offer.

Vendor Discount: The difference between the original asking price and the sale price.

Bank Valuation: A lender’s property value for loan purposes, which may differ from your offer.

Special Levy: An extra strata or body corporate charge for major or unusual expenses.

*General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.