The guideGetting prepared3 min read

Getting your team in place

Six or seven professionals you've never hired before. Who they are, who pays them, and what each would rather not tell you.

Buying a home means engaging a set of professionals most people meet once or twice in a lifetime. Each has a role, and each has an interest. Knowing whose interest aligns with yours is the most useful thing in this chapter.

Who you'll deal with

Below, each of them introduces themselves, and then tells you the thing they'd rather you didn't ask about. It isn't cynicism: every one of these people can be excellent, and most are. But you're the only person in the transaction whose only interest is your own.

Real estate agent · paid by the seller

I market the property, run the inspections and the auction, and negotiate the sale. I'm friendly, I'm helpful, and I'll answer every question you have. What I'd rather not tell you: I work for the vendor. My job is the highest price, and everything I tell you about other buyers' interest is legal, but it isn't necessarily for your benefit. A price guide is a guide.

Mortgage broker · paid by the lender, by commission

I find you a loan from the lenders on my panel, package the application and get you to approval. For most first home buyers I'm free to use. What I'd rather not tell you: My panel isn't every lender, and the commission varies by lender and by loan size. A bigger loan pays me more. Ask which lenders I don't have, and why this one.

Buyer's agent · paid by you

I'm the only person on this list who works for you. I search, inspect, appraise and bid, and I've seen a lot more auctions than you have. What I'd rather not tell you: Some of us charge a percentage of the purchase price, which is the wrong way round. A fixed fee is cleaner. And I'm not free: ask what's in the engagement letter.

Conveyancer · paid by you

I handle the legal side of the transfer: the contract review, the searches, the exchange and settlement. I'm the reason the house you paid for is actually yours. What I'd rather not tell you: The cheap fixed fee often excludes the searches and the disbursements. And if you sign a contract at auction before I've read it, there's not much I can do afterwards.

Building and pest inspector · paid by you

I make sure your future home is in good shape, from the roof to the subfloor, and whether anything is eating it. What I'd rather not tell you: Not all inspectors provide detailed reports, and some overlook smaller issues in a hurry. Ask whether you can come along on the inspection, so you see first-hand what's being checked.

Insurance provider · paid by you

I protect the home from the day you take it on, which is usually before settlement, not after. What I'd rather not tell you: Not all policies are equal. Some exclude flood or termite damage, which matters depending on where you buy. Ask whether the policy pays replacement cost, not just the home's current market value.

Two more you may meet: a valuer, engaged by your lender to confirm the property is worth what you're paying, whose report you may never see; and a Justice of the Peace, who witnesses signatures and certifies documents free of charge at councils, libraries and courthouses.

Choosing well

  • Check the registration. Brokers and credit representatives are searchable on ASIC's registers. Conveyancers are licensed by the state. Building inspectors should carry current professional indemnity insurance; ask to see it.
  • Ask how they're paid, in the first conversation. A good professional answers plainly. Hesitation is information.
  • Get recommendations from people who've bought recently, not from the agent selling you the house.
  • Read the engagement letter. What's included, what's extra, and what happens if the purchase falls through.

Getting educated alongside them

The guide isn't the only thing worth reading. Buyers we spoke to rated The Barefoot Investor for the money habits, The Property Couch and My Millennial Money among podcasts, and the Australian property forums on Whirlpool and Reddit for unvarnished accounts of what a settlement actually feels like. Read widely enough to notice when someone is selling you something.

Do this in HomePlannerScheme eligibility checker Know which schemes you qualify for before you meet a broker. It changes the conversation.Free account required

Before you move on

  • You know who works for you and who doesn't
  • You've checked registrations for anyone you're engaging
  • You've asked each of them how they get paid
  • You have your own conveyancer, not just the one suggested to you