Buyers Guide

Your Guide to Buying Property in NSW

Purchasing property is one of the biggest financial decisions you'll make. Whether you're a first-home buyer, upgrading to a larger home, downsizing, or investing, understanding the buying process can help you make informed decisions with confidence.

At Bay Realty Co, we're committed to helping buyers navigate the NSW property market and find the right property to suit their goals and lifestyle.

Different Ways to Buy Property in NSW

Before beginning your property search, it's important to understand the various methods of sale commonly used throughout New South Wales.

Private Treaty

A Private Treaty sale is the most common method of selling residential property.

The seller lists their property with an asking price or price guide, and interested buyers submit offers through the real estate agent. Negotiations take place between the buyer and seller until an agreement is reached.

Advantages

• Opportunity to negotiate terms and price.
• Greater flexibility for buyers and sellers.
• Cooling-off period generally applies.

Buying at Auction

An auction is a public sale conducted by a licensed auctioneer. Interested buyers compete by placing bids, and the property is sold to the highest bidder if the reserve price is met.

Key Points

• Buyers must register before bidding.
• Successful bidders exchange contracts immediately.
• A deposit is usually payable on the day.
• There is no cooling-off period for auction purchases.

For this reason, buyers should complete all due diligence, finance approval, and inspections before auction day.

Buying by Tender

A Tender sale involves buyers submitting a confidential written offer by a specified closing date.

The seller reviews all offers and can choose to accept, reject, or negotiate with selected buyers.

This method is less common but may be used for unique properties, development opportunities, or specialised assets.

Buying Off-the-Plan

Buying off-the-plan means purchasing a property before construction is completed.

This can offer benefits such as:

• Securing today's price for a future property.
• Potential stamp duty concessions.
• More time to save before settlement.

However, buyers should carefully review contracts and understand that designs, finishes, or completion dates may vary.

Understanding Your Budget

Before searching for property, it's essential to establish how much you can afford.

Most lenders require a deposit of between 5% and 20% of the purchase price, depending on your circumstances and loan type.

We recommend obtaining pre-approval from a lender or mortgage broker before beginning your property search. Pre-approval provides clarity on your borrowing capacity and demonstrates to sellers that you are a serious buyer.

Costs Associated with Buying Property

Many buyers focus solely on the purchase price, but there are additional costs that should be factored into your budget.

Common Purchase Costs

• Stamp Duty (Transfer Duty)

  Stamp duty is one of the largest costs associated with purchasing property in NSW and is calculated based on the property's purchase price.

  For current rates and concessions, visit: www.revenue.nsw.gov.au

• Conveyancing and Legal Fees

  A solicitor or conveyancer will review contracts, conduct searches, manage settlement, and protect your interests throughout the purchase.

  Typical costs may range from approximately $1,500 to $3,000 depending on the transaction.

• Building and Pest Inspections

  Professional inspections can identify structural issues, pest activity, maintenance concerns, and potential future expenses.

  Typical costs may range from:

  • Building Inspection: $300 to $700
  • Pest Inspection: $200 to $500
• Strata Reports

  For apartments and townhouses, obtaining a strata report can provide valuable information regarding:

  • Financial health of the owners corporation
  • Building defects
  • Planned major works
  • Special levies
  • By-laws
• Loan Costs

  Depending on the lender, you may incur:

  • Application fees
  • Valuation fees
  • Settlement fees
  • Ongoing account fees
• Lenders Mortgage Insurance (LMI)

  If your deposit is less than 20%, you may be required to pay Lenders Mortgage Insurance. This protects the lender rather than the borrower and can represent a significant additional cost.

• Government Registration Fees

  Additional government fees relating to title transfers, mortgage registration, and property ownership registration may apply.

Researching the Right Location

Buying the right property starts with choosing the right location.

Before committing to a purchase, consider:

• Local schools and educational facilities
• Public transport access
• Shopping centres and amenities
• Employment hubs
• Future infrastructure projects
• Parks and recreational areas
• Historical property performance
• Rental demand (for investors)

For buyers interested in the St George and Bayside areas, Bay Realty Co can provide valuable local market insights and suburb information.

Finding the Right Property

There are many ways to stay informed about new properties coming to market.

Online Property Portals

Popular websites include:

• realestate.com.au
• domain.com.au

Register with Bay Realty Co

Many properties are sold to buyers registered in our database before receiving significant online exposure.

By registering your requirements with our team, you'll receive updates about new listings that match your criteria.

Register now for our Priority Buyer Alerts

The Importance of Property Inspections

Inspecting a property thoroughly is a critical part of the buying process. When attending inspections, we recommend considering:

The Property Condition

• Structural integrity
• Signs of water damage
• Cracking
• Plumbing issues
• Electrical concerns

The Building

• Maintenance history
• Building presentation
• Community facilities

The Location

• Noise levels
• Parking availability
• Traffic conditions
• Nearby amenities

Where serious interest exists, professional building, pest, and strata inspections are strongly recommended.

Making an Offer

Once you've found the right property, you may wish to submit an offer. Before doing so:

• Confirm your budget.
• Ensure your finance arrangements are in place.
• Review the contract of sale.
• Seek legal advice if required.
• Consider any conditions you wish to include.

All offers should be made in writing and include any relevant terms and conditions.

The seller may:

• Accept your offer.
• Reject your offer.
• Present a counteroffer.

Negotiations often continue until both parties agree on a final price and terms.

Contracts and Cooling-Off Periods

For most private treaty sales in NSW, buyers are generally entitled to a 5-day cooling off period after contracts are exchanged.

During this period, buyers may withdraw from the purchase however will forfeit their initial 0.25% holding deposit.

Please note:

• Cooling-off periods do not generally apply to auction purchases.
• Cooling-off rights may be waived in certain circumstances.

Always seek advice from your solicitor or conveyancer regarding your specific situation.

Pre-Settlement Inspection

The Final Check Before Settlement

A pre-settlement inspection allows the buyer to inspect the property shortly before settlement to ensure it is in substantially the same condition as when contracts were exchanged.

This inspection is typically arranged within the week leading up to settlement and provides peace of mind that there have been no significant changes to the property since purchase.

What Should You Check?

During your pre-settlement inspection, you should confirm that:

• The property remains in the same condition as when sold.
• Any inclusions listed in the contract are still present, such as:
  • Appliances
  • Light fittings
  • Air conditioning units
  • Curtains and blinds
  • Dishwashers
  • Built-in wardrobes
• All agreed repairs have been completed, where applicable.
• There is no new or significant damage to the property.
• Fixtures, fittings, and services are in working order.
• The property has been vacated if vacant possession is required under the contract.

What Happens if an Issue is Discovered?

If a problem is identified during the pre-settlement inspection, your solicitor or conveyancer should be notified immediately.

Examples may include:

• Damage caused during the seller's move-out process.
• Missing inclusions.
• Uncompleted agreed repairs.
• Items left behind that were not agreed to remain.

Depending on the circumstances, the buyer's legal representative may negotiate a resolution before settlement proceeds.

Important to Remember

A pre-settlement inspection is not another building inspection. It is an opportunity to verify that the property's condition has not materially changed and that the seller has complied with their contractual obligations.

If you have any concerns during the inspection, seek advice from your solicitor or conveyancer before settlement takes place.

Settlement

Settlement is the final stage of the property purchase process.

This typically occurs several weeks after contracts have been exchanged and involves:

• Payment of the balance of the purchase price.
• Transfer of ownership.
• Registration of the transfer.
• Collection of keys and possession of the property.

Once settlement is completed, the property officially becomes yours.

Why Buy Through Bay Realty Co?

Purchasing property should be an exciting and rewarding experience.

At Bay Realty Co, we provide:

• Local expertise across Rockdale, St George, Bayside, and surrounding suburbs
• Transparent communication throughout the buying process
• Professional guidance for first-home buyers and investors
• Access to upcoming and off-market opportunities
• Experienced negotiators who understand the local market
• Friendly and responsive customer service

Whether you're looking for your first home, next home, or investment property, our team is here to support you every step of the way.

Ready to Start Your Property Search?

Contact Bay Realty Co today to discuss your property goals and register your buying requirements.

Bay Realty Co
426 Princes Highway, Rockdale NSW 2216
(02) 9597 6144
[email protected]
www.bayrealty.com.au