As you look you may find some of the things you identified at the start may change. This is quite normal. Be prepared to change what you require as you gain a realistic picture of the property market.

Step 2: Organise your finances and find an experienced solicitor or conveyancer
Make sure you have loan approval from your bank or lender before you make an offer. Some finance providers will not give final approval until they have seen the Contract for Sale of the property and obtained property details.

As loan rates vary, it's a good idea to shop around. Some people use a mortgage broker to find the best deal. Prepare a list of costs. Don't forget to allow for additional costs such as stamp duty on the contract, mortgage stamp duty and solicitor's or conveyancer's fees.

You'll also need to think about other hidden costs such as renovation, repair costs, moving fees, insurance and adjustments to rates and levies on settlement.

Find a solicitor or conveyancer who is experienced in conveyancing and check how much they will charge you. The Law Society of NSW has a list of solicitors by local area. Conveyancers specialize in conveyancing and must be licensed by the Department of Fair Trading. They are listed in the Yellow Pages or you can inquire by calling the Conveyancing Society of NSW. As conveyancing fees are deregulated, it's wise to shop around and compare quotes. Check whether the fees charged include disbursements such as title searches, photocopying and other searches.

Step 3: Research and take time to look for a suitable property
Be a smart consumer and do your research. This will take time and may involve looking at a number of properties over weeks and moths, especially on weekends. Contact several real estate agents, let them know what you are looking for. Brief them on any special requirements. Always be aware that the seller appoints the agent and as such, agents must act in the seller's interests.

Look at local and metropolitan newspapers as well as relevant websites. Set aside enough time to look at properties. Sometime it helps to take a friend along with you. Take notes when you look at properties. It's easy to forget important details after looking at a number of properties.

Research recent sale prices in the area for properties similar to what you are looking for. You can access sales information usually by paying a fee. You will receive that information by email or by post. A number of agency websites list recent sale prices. Agents may also be able to provide lists of recent sales.

You'll probably need to look at a number of properties before you decide to buy. When you look at properties, ask lots of questions about things you are uncertain about. Purchasing a property is a big investment and you need to be confident you're making the right decision.

Some things to look for when you inspect:

Ask the agent for a copy of the Contract for Sale.

If you are interested in a property but unsure about some details, ask the agent if you can go back and have another look.

TIP
Keep an exercise book and make notes about each property you inspect. It's easy to forget important details when you look at a number of properties over a period of time.

Step 4: Consider Professional Inspections
It is important to consider having inspections done by experts to check for any problems. If you are considering buying at auction and you want to have special inspections done, these must be arranged prior to the auction day. Sometimes, these inspections are done after you have made an offer on a property. It may be advisable to have the property thoroughly checked by experts. Your solicitor or conveyancer can give you guidance in this matter.

Some points to consider:

• A building inspection is done by a licensed architect or by a registered builder.
• If a house is on a steep block, you might also get a geotechnical report to check the stability of the land.
• It is also a good idea to check for pests, such as termites.
• If you are considering buying a unit, you should arrange an inspection of the books and records of the owners' corporation. The strata manager or the building secretary maintains these.
• Make sure qualified professionals conduct these inspections.

You should remember that the cost of the inspections might seem a lot. However, they may find faults that could be expensive to fix. This could add to the overall cost of your property. Compared to the price paid, the inspections may be money well spent.

Step 5: Making an offer on the property
When you find the property you want to buy, you need to make an offer of what you are prepared to pay. Negotiate if you think the price is too high. The agent will discuss this with the seller. You may be asked to pay an initial deposit. This does not secure the property for you, but is a sign that you are serious. However, it may not mean that the property is taken off the market or that the seller will not consider other offers as well.

Gazumping is something to be aware of it you make an offer on a property. Gazumping occurs when you negotiate a price for a property that is accepted by the seller, however, before contracts are exchanged, another buyer makes a higher offer or offers better terms that the seller accepts and contracts are exchanged with the other person. This can be a disappointment for buyers, particularly if they have paid money for pest and building reports, and fees for solicitors or conveyancers, and then find out the seller has accepted another offer.

Step 6: Exchange of contracts
The contract sets out the terms and conditions of the sale. It also identifies items such as floor coverings, curtains or other inclusions that are either included or excluded in the contract. Your solicitor or conveyancer will examine the contract carefully. There are two copies of the sale contract - one for you and one for the seller. You each sign one copy before they are swapped or "exchanged" and the deposit is handed over. Only when both the seller and the buyer have signed the contract and exchanged copies do you both become bound by the contract. The deposit will be held by either the agent, invested in an interest bearing deposit or released to the seller. The contract will stipulate the deposit details.

There can be a five-business day cooling off period unless you have bought at an auction or you may be asked to sign an agreement waiving the right to the five-day cooling off period. This is known as a section 66W certificate. A solicitor or barrister must sign it. The five-day cooling off period (after exchange) allows you time to conduct searches, obtain reports, confirm your finance and gives you the opportunity to withdraw. However, if you do not continue with the sale, you will forfeit 0.25% of the purchase price from the deposit you have paid if you decide to do so. Discuss with your solicitor or conveyancer your rights and obligations during the cooling off period. Real estate agents can only exchange contracts in a private treaty sale with a cooling off period. Real estate agents exchange contracts under auction conditions and there is no cooling off period.

Step 7: Settlement
Settlement occurs when the buyer pays the balance of the selling price. Adjustments are made for water and council rates, strata levies for units and any outstanding mortgages are paid out by the seller from the purchase price. The buyer becomes the legal owner of the property after settlement.

The period between the exchange of contracts and settlement is usually four to six weeks, although either party may ask for longer or shorter settlement period prior to exchange. Make sure the settlement period suits your needs. This will affect your move and the sale of your own property if you have one. Organizing a move into the property on the settlement day can sometimes be difficult, as there can be last minute issues that may delay settlement by hours or days. Ideally do not plan to move in on day of settlement.

Disclaimer
The content of this is provided as a general overview for information purposes only and is not legal advice. While reasonable care has been taken in its preparation we do not guarantee or warrant the accuracy, reliability, completeness or currency of the information.

Users of this should seek legal advice as to its applicability to their own circumstances and are responsible for independently assessing the relevance, currency and accuracy of the contents and the legality of their actions.

Information in this is considered to be true and correct at the time of publication, however, changes in circumstances after the time of publication may impact on the accuracy of this information and no assurances are given as to its accuracy.