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Building and Pest Inspection is amongst one of the critical things to check when buying your home or investment property in Melbourne. It is especially critical to have the building inspected before an Auction, if you intend to buy at auctions. In this article, our buyers advocates will explain what is a building and pest inspection, how much it typically cost in Melbourne, and ways to save on unnecessary costs. Why is a Building and Pest Inspection Important Before Auction? A building and pest inspection is crucial before an auction to uncover defects, protect you from costly repairs, provide information for pricing. It is also to ensure you understand the property's true condition before making a legally binding, unconditional bid. An auction sale in Melbourne in unconditional, has no cooling-off period, making a pre-auction inspection essential for an informed and safe purchase. From experience, between 80-90% of the properties will come with issues . Even brand new houses are not immune to problems. While most issues are minor and cosmetic in nature, some could be serious structural issues, which will have safety and liveability implications. What is a Building Inspection? A building inspection is an inspection of the building structure performed by a licenced and certified building inspector. The inspection ensures the building meets the applicable building standards and health and safety conditions. The inspection will identify issues and defects with the building which buyers must know. Major, structural defects and safety concerns will be identified while the more diligent inspectors will also identify minor and cosmetic issues in their reports. What Does a Building Inspection Cost in Melbourne? In Melbourne, a Building Inspection usually cost between $400 - $700 , depending on the location, and size of the property. It is a very competitive market in Melbourne, prices will vary and the better inspectors tend to command a higher fee. What is a Pest Inspection? A pest inspection is a detailed, methodical and careful examination inside and outside your home by a licenced and certified pest inspector. The inspection will identify pest issues such as termites and burrowing insect in the building. These infestations can usually damage the structural integrity of a property, if left undetected and untreated, making the building to be unliveable. What Does a Pest Inspection Cost in Melbourne? A typical Pest Inspection in Melbourne cost between $300 - $600 , depending on the location, and size of the property. Again, because it is a free market, prices vary and the better inspectors tend to charge a higher fee. What is a Combined Building and Pest Inspection? A combined building and pest inspection simply means the building is inspected for both building defects and pest concerns at the same time. It is increasingly common for inspectors to be certified and licenced for both building inspection and pest inspections. What Does a Building and Pest Inspection Cost in Melbourne? If both the building and pest inspection are conducted at the same time, the combined inspection usually cost less than 2 separate Building and Pest Inspections, as the same inspector will only need to inspect the property once for both concerns. The typical cost of a combined building and pest inspection in Melbourne ranges from between $700 to $900 , depending on location and size of the property. The inspector's experience and attention to details plays an important role in determining the quality of the inspections. The good inspectors may charge more, but they are worth every cent you pay. Quality and Experience of Inspectors Matters more than the Price The quality of inspections varies widely from bare minimal reports to over hyped inspectors featured on social media. Remember, experience and time is money, and being expensive does not necessarily mean you will be getting a better job. You could be paying for the social media editing time. Similarly, beware of cheap inspectors charging peanuts. In our line of work as buyers advocates in Melbourne, we had the opportunity to read hundreds of reports from various inspectors, from $400 inspections to $800 inspections. While it may be more budget friendly with cheap reports, they are usually not worth the paper they are printed on. The building and pest inspection industry is quite competitive in Melbourne, and you get do what you pay for. Quality and details are usually the reasons why they can afford to charge more. In our 80+ years of property investment and buying experience, our buyers advocates only rely on a handful of tried and tested inspectors to do the job for our clients. They are usually not the cheapest, neither are they the most expensive. But we have the confidence that they will get the inspection job done properly. What Happens when Issues are Found During Building and Pest Inspections? We always expect that we will find issues during the building and pest inspections. Perfect buildings do not exist. I'll be questioning our inspectors if they are not able to find any issues during the inspections. When issues are found during the inspections, it is not the end of the world. You need to read and understand the report. The report will identify issues ranging from minor cosmetic issues to major structural problems. How you manage this information is important. These inspection reports should determine if you go ahead with buying the property, and how much you offer for the property. Most experienced buyers will use the information provided in these report to assess if it is still worthwhile buying the property. Using their experience, they would have an idea of how much the property is worth, considering the issues highlighted in the report. The cost of repair will also play an important part in this decision. What Does it Cost to Fix Issues Discovered in a Building and Pest Inspection? The cost to fix issues discovered in a Building and Pest Inspection report varies. Some are relatively cheap, while some could be costly repairs. The seriousness of the issues also bears no resemblance to the cost of repairing those issues. It all has to depend on what the issue is, how it should be properly rectified and the consequences of not addressing it can be. What Does it Cost to fix a Minor Defect? Most minor issues can be cheap to fix, but some can be costly. For example, the report might indicate minor, cosmetic cracks on the walls. Most of these cracks are no more than a few hundred dollars to repair. But if there are several of these cracks, it can add up quite quickly. Another example, is the condition of the paint. While the condition of the paint is usually reported as a side-note, not a defect, it can easily cost between $10,000-$30,000 to have an entire house repainted. What Does it Cost to fix a Major Defect? Similarly, a major defect need not be expensive. While some can be cheap to fix, some can be costly or not worth repairing. For example, a major defect can be a weakened foundation. This can easily cost between tens of thousands of dollars, to over hundreds of thousands, depending on what is wrong and what is required to address it. Conversely, an issue with the roof and gutters may sometimes be flagged as a major structural issue, but could cost no more than a few thousand dollars to repair. How Had Building and Pest Inspections Saved Our Buyers? In our decade long experience as buyers advocates, we had seen countless examples of how building and pest inspections had saved our clients from trouble. Case Studies. How have Building Inspections Helped our Buyers. Every building will have some form of issues. Through building and pest inspections, some significant examples highlighted includes: When is a Three Bedroom House a Two Bedder? This buyer came to us when they realised their mistake after making an offer for a 3 bedroom house in Rowville, a south eastern Melbourne suburb. Our on-site inspection flagged a suspicious looking bedroom, which our building inspector subsequently confirmed as an illegally built 3rd bedroom. There is no way to rectify it as it was not built to building code. The dimensions of the room are non compliant, there is insufficient insulations and no proper heating and cooling. As a result of this major issue, it triggered an avalanche of events which eventually allowed our client to walk away from the purchase without any penalties. This was about 10 years ago, and rectifying this would easily cost around $100k, or about $200k in today's money. A house with a broken roof truss . This house in the eastern Melbourne suburb of Ringwood was newly renovated and looked dressed to sell. Our client initially wanted to save some costs, and did not agree with our recommendation to have the building inspected. But we managed to convince them otherwise. A detailed inspection by our trusted building inspector revealed a major structural issue. A major roof supporting structure has snapped, suggesting the roof had either suffered a major impact or there are other major shifts in the load bearing structure in the house. To have this properly assessed by an engineer and repaired by a builder would cost between $100,000-$150,000. Vendor insist the building is safe and refused to accept the report. We walked away. The building was subsequently sold to an unsuspecting buyer. Leaning Townhouse of Forest Hill . This 20 year old 4 bedroom townhouse in eastern Melbourne visually looked dated but it otherwise looked structurally OK. However, a building and pest inspection revealed that the entire townhouse was tilting to the left. This was reported as a major structural defect and we walked away successfully. The inspector was unable to estimate the rectification cost as this repair work was major and would involved the body corporate. The entire complex of 8 other townhouses need to be assessed. We chose not to get involved and we walked away from this purchase. What if You Do Not Have The Experience to Understand the Report? As part of our full property buying services, we will help our buyers understand the report, highlight the major concerns, estimate the cost of repair, and recommend if we proceed with the purchase. If you do not have privileged access to these information, you can discuss this with your inspector. An experienced inspector would have a good understand of the extent of the issues, how the issues should be addressed properly to meet the building, health and safety standards, etc. Good inspectors would also give you an idea of what it will cost to have the issues rectified. Time to Move Ahead? Book a strategy call to discuss how our property buying services in Melbourne can help you reduce the cost of unnecessary building and pest inspections. Our buyers advocates are builder-trained and we include a preliminary check on the building as part of our Property Appraisal at Open for Inspections . Our independent appraisal gives buyers a realistic value of what the property can sell for during Auctions, giving buyers the confidence to attend and bid at auctions, knowing they will not overpay.

And What Savvy Buyers Do Instead: A Guide to Smart Property Buying in Melbourne Everyone wants a good deal, right? But only smart buyers know where to find it and do it correctly. In Melbourne’s fast-moving property market, the real win isn’t just a discounted buyers agent invoice. It’s about buying the right asset at the right price , before anyone else does. Haggling with your buyers advocates over a service fee can stall your momentum, signal indecision, and often cost you far more at settlement. Here’s how experienced buyers get ahead, and why fee negotiating always leave you worse off. If you are cost conscious, fixed-fee advocacy is the smartest play. The Melbourne Property Market Rewards Speed and Certainty—Not Endless Fee Negotiations Good properties do not wait for slow buyers. When you delay your purchase by pushing your Melbourne buyers agent for a fee discount, or while you price shop between a few buyers agents, these things often happen: Buying Momentum Stalls: Time spent debating fees or shopping for lowest fees is time not spent searching, inspecting, valuing, and negotiating on the home you actually want. In fast markets like Melbourne, good properties can be sold within days—sometimes hours. Monthly Price Creep: A growth of 1-5% every month is not unheard of in desirable locations. With a median property price at $1 million, that month of delay can equate to a $10,000-$30,000 price increase every month , way more than the fees you're trying to negotiate. You Show Indecision: This signals a wrong focus. It’s a massive red flag in the eyes of every experienced Buyers Advocate. To save you bigger money, they appreciate clients who see the big picture and make fast decisions. Good properties can be sold in an instant, leaving little room for hesitation. Only a decisive team (you + your buyers advocate) can move fast and secure better terms and prices. Decent buyers advocates would rather not work with indecisive buyers than risk accepting a client they cannot fulfil. Bottom Line: The cost of delay can dwarf any "discount" you are trying to squeeze from your advocate. The REAL Cost Isn't the Buyers Advocates' Fee. It's Buying the Wrong Property Haggling focuses on a small, visible number (the fee). But the real costs in buying properties live elsewhere: Overpaying: Paying 2–3% more on an $800k purchase can mean $16k–$24k lost. Hidden Defects: Missing these in due diligence can cost you $10k–$50k+. Poor Location Fundamentals: Issues like yield, vacancy, and owner-occupier demand can drag capital growth for years. An experienced buyers advocacy service minimises these risks with valuation discipline, suburb selection, and structured due diligence. That’s where a fixed-fee buyers agent in Melbourne earns their reputation. Bottom Line: Saving $2-3k on a fee while paying $20k more for a property isn't a win. How Fixed Fees Buyers Advocates Beat "Discounted" Fees While you can try to negotiate fees with your buyers agent, some agents might agree to reduce their fee. Then quietly reduce their services: Reduced priority in property representation Lower support levels Fewer inspections or no mid-week revisits Limited auction / negotiation coverage Reduced off-market outreach Shallow due diligence notes (no proper risk matrix or comparable sales pack) At Concierge Buyers Advocates , we do not play that game. We scope the brief to your needs, then fix the fees and deliver the process. We have a range of competitive fees to meet the different needs of our buyers. Our popular fixed fee GOLD model is the most comprehensive. It covers the full property buying scope: from search, shortlisting, pricing analysis, risk checks, and negotiation, until purchase . We do not engage in fee negotiations, and we treat all our buyers fairly and equally. Every buyers are given the same attention and level of priority they deserve. We would rather be upfront, offering our buyers a lower-priced plan with a reduced scope, than to sneakily trim our services and leave them with a half-done job that we would not be proud of. No bait-and-switch. No moving goalposts. Clients hire us to buy confidence and avoid overpaying. They know they are getting what they paid for. Not All Buyers Agents are the Same. Here's What Sales Agents Actually Respect. Not all buyers agents are created equal. Experience and reputation in the industry matter. Ask any seasoned real estate sales agent who they prefer to work buyers agents. They’ll tell you they prefer experienced buyers advocates who know their stuff. It makes their job ten times easier. Real finance clarity (pre-approval verified) Clean conditions + decisive timeframes Realistic pricing supported by real facts A buyers advocate with a reputation for getting deals done A Melbourne buyers advocate who is sidetracked by indecisive buyers and haggling has little time to do their best for their buyer clients. They need to focus on getting the best deal possible, not fight for their fees. Here's How to Negotiate a Buyers Agents' Fees, And How Smart Buyers Do It We get it. Some people believe haggling is a cultural or habitual thing. We prefer to think of it as a buying style. So here's how you can negotiate your buyers agent's fees. Buyers can generally be categorised into: Price-anchored buyers: They fixate on fees and ask for “Gold service at Silver prices.” Value-anchored buyers: They ask, “How do we use your process to save money, time, and mistakes?” If you find yourself drifting into price-anchored mode, flip the question. Ask "What could the wrong asset or a bad negotiation cost me?" and "What could distracting my buyers agent cost me?" The answer becomes obvious. Is trying to save $2k on the buyers agent's fees worth the risk of a rejection from your buyers advocate? Good buyers advocates can easily save you tens of thousands of dollars in your property purchase. Our buyers advocates typically save our clients between $20-$50,000 per purchase. The answer reframes the fee instantly. How a Fixed-Fee Buyers Agent Creates ROI (Even Before Negotiation) A good Melbourne buyers agent pays for themselves several times over by: Laser Brief: Owner-occupier demand, rental yield, livability filters Pricing Discipline: Using true comparable sales, not quoted ranges Risk Mapping: Title, overlays, building defects, strata/OC, rental demand Right Strategy for the Campaign: Auction / EOI / private sale Access to Off-market and Pre-market opportunities through agent relationships and industry networks. That’s before we even talk about your time saved and stress avoided. Want this playbook on your side? Let's book a free strategy call . Why Our Clients Don’t Haggle (and Still Come Out Ahead) At Concierge Buyers Advocates, we keep it simple: Fixed-fee buyers agent (Melbourne & Victoria) with a no-discount policy Clear scope: Search → Inspect → Due diligence → Valuation → Negotiate/Auction → Settle Most clients buy within ~8 weeks because we only onboard decisive buyers and keep decisions crisp We act only for buyers (no kickbacks, no double-dipping) Because our fees are fixed and published, you know exactly what you’re getting. No hidden “success” surprises; no half-service disguised as a bargain. Tight Budget? Change Scope—Not Standards We understand. Not everyone needs an end-to-end service. Some buyers are happy to share the work and be part of the process. That’s why our buyers advocates in Melbourne offer tiered service packages: Full Service (Gold) : End-to-end search to purchase, including off-markets and unlimited (reasonable) inspections. Lighter Scope (Silver): Focused shortlist, capped inspections, negotiations, and auctions. Property Buyers Buddy : Pay-by-month expert online support for DIY buyers. Reducing scope is the only smart way to reduce costs. It keeps quality stays intact. You benefit from a professional process the way it is meant to be, while keeping your budget in check. You can buy a Mercedes with a Toyota budget by adjusting your scope. Buy the base model A160 if you must have a Mercedes, but not the flagship S600L Maybach. You probably don’t want to end up with a stripped-down S-class either. Red Flags: When Haggling Will Definitely Backfire Some of the ridiculous requests we’ve seen from prospects over the years show a lack of respect for intellectual property rights. These are serious integrity red flags, and experienced, self-respecting buyers advocates like us hit pause in these situations. We’d rather cut the prospect loose than welcome trouble. Asking for internal spreadsheets/intellectual properties before engagement “Trialling” a buyers agent on live property "samples" without commitment Wanting full off-market access and unlimited inspections at a discounted fee Claiming months of delays due to flu (?!) These behaviours slow your purchase, and you risk losing the right agent on your side. A decent buyers advocate will protect you and themselves by setting boundaries or walking away. They have to, just to be fair to you, them, and their clients. If buyers advocates are quick to negotiate away their own fees, how well will they negotiate on a property for you? Found a Buyers Advocate Who Accepts Your Lowball Fee? It might feel like a win when you find a buyers advocate who agrees to a big discount. But that’s only one side of the coin. The buyers advocacy industry in Melbourne is very competitive, and not all “buyers agents” are equal. You’ll see sneaky commission-driven marketers and inexperienced operators positioning themselves as advocates to bait unsuspecting "value-seeking" buyers. We often see dodgy marketing associates using underhanded tactics to bring unsuspecting buyers into their "low-fee" or "no-fee" services. As with most things, you get what you pay for . Ask yourself: If the buyers advocates are quick to discount their own fee, how hard will they really negotiate on a multi-hundred-thousand-dollar property? That is their first test. Snagging a “cheap” buyers agent is often a major red flag. Experienced negotiators know their value and defend it. That is how you know they can defend you at the negotiation tables. Cheap for a Reason You’re paying for skill, experience, and protection. Rock-bottom, unsustainable fees often signal a lack of track record. That playbook attracts price-sensitive clients and turns your purchase into their training ground. The result? You risk overpaying, overlooking defects, or missing better opportunities. If you want real value, choose a Melbourne buyers advocate with proven negotiation results, transparent fixed fees, and rigorous due diligence—so your savings show up in the purchase price , not just the invoice. Why Top Buyers Advocates Charge an Upfront Fee If you’ve ever wondered why experienced Melbourne buyers advocates ask for an upfront retainer (also called a commitment fee), here’s the truth: it’s not just about being paid for their time. A retainer protects your outcome . It ensures your advocate works only for your, is independent, focused, and fully resourced to secure the right property at the right price . What an Upfront Retainer Signals (and Secures) 1) Serious Buyer Commitment The modest retainer separates ready buyers from window-shoppers. When you invest, we invest, prioritising your brief, opening our network, and moving quickly on inspections, price workups, and off-market opportunities, because we know you are committed to the process. 2) Aligned Incentives & True Independence A professional, fixed-fee buyers agent is paid by you, not by developers or selling agents. The retainer locks in that independence from day one. No kickbacks. No hidden agendas. Just real advice that serves your goals. 3) Capacity Reserved for Your Brief Great properties don’t wait. A retainer shows your commitment, and lets us reserve senior advocate time, run due diligence early (title, overlays, strata/OC, rental demand, building risk), and be ready to negotiate or bid at auction the moment the right property appears. 4) Price Protection That Dwarfs the Fee Our fee is typically around 1–2% (or a transparent fixed amount). In return, disciplined pricing and negotiation routinely prevent buyers from overpaying, often by tens of thousands more than the fee itself. One strong negotiation can pay for the entire engagement. The missed opportunity cost, lost time, rising prices, extra rent, and emotional fatigue, far exceeds any "savings" in fees. 5) Clarity, Momentum, Results Haggling over a small fee stalls momentum. And momentum is everything in the fast Melbourne property market. A retainer sets the tone: committed, decisive buyer, decisive advocate, decisive result. Who the Fees Filter Out (And Why That’s Okay) If a buyer cannot see the value in point 4 above (that a 1–2% professional fee can prevent an expensive misstep), it usually signals indecision and misaligned focus. In our experience, those are the buyers who will struggle to commit and move at market speed, often resulting in missing the best assets. We can only achieve the best results with clients who value data, process, and outcomes. They are usually the ones who needed more time to be ready. And that’s okay. The Buyers Advocate's Nightmare Client (And How They Avoid a Bad Fit) Most buyers are great to work with and genuinely value the expertise our Melbourne Buyers Advocates bring. But every so often, we meet a prospect who raises red flags early. And that is usually during the fee discussion. When a buyer fixates on shaving a few dollars off a fixed-fee buyers agent service, it often signals deeper issues: indecision, short-term thinking, and a failure to see the bigger picture of a six- or seven-figure purchase. These are serious red flags unwelcome by any service providers. And we are no different. How Do Buyers Advocates Respond to These Prospects? Experienced buyers advocates will drop them to be fair to these prospects and their clients . Yes, buyers advocates is keen to enroll the prospect, but their clients need the undivided time to strategise a property deal, not to deal with such low-ballers. The service industry has many ways of saying no to a prospect without saying no. The prospect might walk away feeling satisfied that they rejected an "expensive agent," but the fact is, they had already been red-flagged and dropped by the agent . Time will eventually show them the outcome of their actions. The Take-Home If you want the best buying outcome, the right asset, bought well, without stress, hire an experienced buyers advocate on a fixed fee, agree on the scope, and start quickly. Delaying the process by weeks while you haggle over $2k on the fees may feel clever in the moment, but it drains your own time, weakens leverage, and will cost you tens of thousands when you subsequently buy the property at inflated prices. Ready to Buy with Confidence? ✅ Fixed-fee, no-discount policy (quality preserved) ✅ Off-market access and agent relationships ✅ Fast decisions, disciplined pricing, tight due diligence ✅ First-home buyers, upsizers, and investors welcome If you’re a first-home buyer, up-sizer, or Melbourne property investor, we’d love to help. Speak to a licensed buyers advocate, skip the fee tennis, and let’s get you the right result fast. Concierge Buyers Advocates — Melbourne buyers agent. 80+ years experience, fixed-fees. Off-market access. Smart due diligence. Stress-free buying. FAQs Do Buyers Advocates Discount Fees? Reputable buyers advocates in Melbourne set fixed fees to protect service quality and momentum. If price is your sole criterion, consider a lighter-scope package rather than a discount. How Does a Fixed-Fee Buyers Agent Work? You get transparent pricing upfront and a defined scope: search, inspections, due diligence, valuation guidance, and negotiation/auction to purchase. Isn’t It Smart to Negotiate Everything? Negotiate the property price, not your advocate’s fees and process. Negotiating on fees delays and stalls your own buying process. It does not hurt the buyers advocate. Good, experienced ones have a waiting list of clients. An experienced buyers advocate helps you avoid overpaying by tens of thousands, far more than the $2k you are trying to save on fees. In a hot market, property prices can move by $10-30k every month. Smart buyers know which to aim for.

This is a very good question from a first home buyer who wished to remain anonymous. "I am so torn with what to do. Most of the houses we're interested in go to auction and the agents all seem to be saying 'the owner's aren't interested in offers'. I can foresee us going to another 10+ auctions before we get lucky with a purchase, so do people actually do building inspections prior to every auction and then potentially not even come close to buying the property? It just seems very backwards. Do buyers pay a conveyancer to review contract of sale prior to each auction? It seems like such a waste of money when you don't know if you will even be able to buy the property. Obviously worth it when you do though." The answer is pretty obvious. What’s not obvious is that this reflects the exasperation many first-home buyers feel. The house hunt can be expensive, discouraging and demoralising. The good news: there’s a smarter, often cheaper way to do it. With a realistic brief, realistic appraisal of property value, and targeted inspections, you can avoid paying for unnecessary reports on the wrong properties, cut travel and time wastage, and save up to 80% of unnecessary costs by staying focused and pragmatic. Hiring a buyers advocate may look like an added expense, but it often delivers net savings. Fewer dead-end inspections, sharper negotiation, access to off-market opportunities, and protection against overpaying. Our Melbourne buyers advocates can show you how to manage costs intelligently and secure the right property at the right price. Let's start with answering the question. Should you do a Building and Pest Inspection and Contract Review for every auction you go to? Why Should You Get a Building and Pest Inspection and Contract Reviewed Before Attending Auctions? Doing a complete due diligence is a must before you buy any properties and bid at any auctions. This ensures you know what you are buying and understand if the property can do what you wanted to do. Building and Pest Inspections and Contract Reviews are not the only things you need to do, but these are the bare minimum you MUST do. You will need to be comfortable that the property which you might end up buying, is what you are looking for, suits your needs, and that there are no hidden nasty surprises. This is particularly important at auctions in most Australian states, including Melbourne, because the properties you buy at auctions are unconditional , you cannot say "Oops! I made a mistake" and walk away. If you win the property at property auctions or under auction conditions, you have committed to an unconditional purchase and you have to go through and complete the purchase or you will suffer legal consequences. To help you understand why a Building and Pest Inspection and Contract Review are important, we will discussion the importance of Building and Pest Inspection and Contract Reviews separately. Part 1 will discuss the importance of a Building and Pest Inspection, and part 2 will discuss the importance of the Sales Contract. Part 1. What is a Building and Pest Inspection? Why is a Building and Pest Inspection Important? From experience, between 80-90% of the properties will come with issues. Even brand new houses are not immune to problems. While most are minor, cosmetics issues, some could be major and structural issues, which can have safety and liveability implications. For a more detailed discussion on why building and pest inspections are important, head over to this article . What is a Building Inspection and how much does it cost in Melbourne? A Building Inspection in Melbourne usually cost between $400 - $600 . What is a Pest Inspection and how much does it cost in Melbourne? A typical Pest Inspection in Melbourne cost between $300-600 . What is a Combined Building and Pest Inspection and how much does it cost? The typical cost of a combined building and pest inspection in Melbourne ranges from between $700 to $900 , depending on location and size of the property. Part 2. What is a Real Estate Sales Contract? Why is a Sales Contract Review Important? A sales contract is typically around a hundred or more pages. It is a legal contract between the seller and the buyer. This legally binding document lists the important information about the property which a typical buyer would need to know, before they purchase. It is thus, critical to understand your obligations in the contract, before you commit to the purchase. This article will help you understand what a contract review will expose and how to change the contract. How Much Does a Contract Review Cost in Melbourne? Solicitors typically charge between $200-$500 for a contract review, depending on the complexity of the contract. Most solicitors however, provides a couple of free contract review, when you engage their conveyancing services. Can You Reduce The Costs of Building and Pest Inspections and Contract Review? This is a popular question with home buyers, and we can understand why. Typically, the basic due diligence of doing the building and pest inspection , plus getting the contract reviewed will cost the buyer between $1000 to $1500 , per property . And if you need to do this for every property you intend to bid at auctions, the costs can add up quickly and it can be very significant. But, there are some ways to mitigate or reduce these costs. The best way to reduce these costs is by: having a good understanding of the property market, and being selective with the property you chose to go for, plus organising the inspections and contract reviews done in the most pragmatic manner . Here's how you do it. How to Reduce the Cost of Building and Pest Inspections and Contract Reviews By being realistic and knowing the property will help you selectively shortlist the properties. Here are a few ways to help you reduce the costs of building and pest inspections and contract reviews: Understand your budget. Know what is the absolute maximum you can afford for the property. Remember to factor in other purchase costs, such as conveyancing, building and pest inspections, sales contract reviews, stamp duties, and potential repair or renovation costs for the property. Have a Good Understanding of the Realistic Property Value. If you are unable to ascertain this, get an independent appraisal for the property. Price quoted by the sales agents are usually for marketing purposes, and could have no resemblance of what the vendor wants or what the property can sell for. You will need an independent appraisal done to understand what the property can sell for and what other buyers will pay for it. Inspect the Property Properly during Open for Inspections. In addition to whether you like the property, assess the property for obvious issues and other suspicious issues. If you know what you are looking for, cracks and leaks can tell you a lot about the condition of the property, and you will be able to know if the property is worth your time and money to do costly formal inspections and contract reviews. Be Selective with the Auction Properties Understanding the first 2 values will help you understand your chances of winning at the auction and decide if you should go ahead with preparing for the auction. Step 3 above will let you decide if you want to go ahead with the auction. Once you are satisfied with all 3, and you decide to go for the auction, get the property formally inspected for building and pest issues and contract reviewed. With enough experience, you will realise only 2 to 3 properties will make the mark, out of every 10 properties you shortlist. Yes, for a typical buyer, up to 80% of the properties which they are interested in, are usually not suitable and a waste of time . What if You Do Not Know How to Prepare for Inspections and Auctions? If you are inexperienced or not sure what to look for, our Melbourne Buyers Advocates and Buyers Agents can help with your purchase in Melbourne or Victoria. We've been property investors for over 20 years and in the real estate buying business for over 10 years. Each of our buyers advocates are builder-trained and typically visit and inspect between 400-500 properties annually. Yes, we inspect about 10 properties each week, and we understand not many people will buy enough properties to know what to look for and how to prepare yourself for any property purchase and auctions. If you need some experienced guidance, our Buyers Advocates or Buyers Agents in Melbourne are happy to assist. Our buyers advocates are builder-trained licenced real estate agents who purely assist buyers. When we conduct our on-site inspections during open for inspections, we assess and note the property for visual building and pest concerns, and provide you with our opinion of the property condition plus an independent appraisal of the property value. This independent appraisal is critical in giving you an good idea of what other buyers will pay and bid at the auction, giving you an added layer of confidence at the day of auction. You cannot rely on the price guides and statement of information from the sales agents, as they are usually used for marketing purposes, and it it not common the prices mentioned bears no resemblance to the price they will be sold for. This article will explain why these price guides cannot be relied on . How Much Can Buyers Agents Help You Save? Many usually ask how much can a buyers agent save them? On average, between 15-30 shortlisted properties for each of our buyers are disqualified because of budget mismatch or serious concerns with defects noted during our on-site visits. Most buyers, however, will usually shortlist these properties and perform the building inspections and contract reviews without realising they would be unsuccessful in buying them. With our buyers agents or advocates on your side, we would help you understand the true value of the property, before you attempt any inspections or reviews. This critical step typically prevents our buyers from paying for unnecessary inspections and reviews, ie, a total savings of between $15,000-$30,000+ . That's where the value of experienced buyers agents come in. Our experience and skills help you avoid unnecessary costs . In addition to helping you independently understand the value of the property, we will strategies with you to bid, negotiate or plan our attack to help ensure you buy the property at the lowest possible price, plus avoid unnecessary costs such as needless property inspections and contract reviews. When you are ready, lock in your confidential discussion .

Buy the right property at the right price—without the stress. Buying a home in Melbourne should feel exciting—not overwhelming. As buyers advocates in Melbourne , we help first-home buyers, upsizers and investors cut through noise, avoid overpaying, and secure the right property with confidence. Use this step-by-step guide to buy like a professional: suburb strategy, due diligence, offer pricing, and negotiation / auction tactics—end to end. 1) Get Finance-Ready (The Smart Way) Understanding what you can afford is the very first step in buying your house. Talk to a Mortgage Broker: to understand how much a bank/lender will lend you. Mortgage Repayment: use one of our mortgage calculators to understand what your monthly repayment is Model a safe budget:  stress-test repayments at +2% interest  and include insurance, council rates, body corporate fees, water rates, and a maintenance buffer. Pre-approval first, inspections second:  real pre-approval strengthens offers and auction readiness. Stamp duty & concessions:  use the Victorian State Revenue Office calculators  for land transfer (stamp) duty, concessions and land tax before you start shortlisting. Need help sorting lending options? We'll connect you with independent brokers (no fees to you) who understand Melbourne's property market and timelines. Tip: Duty, concessions and thresholds change. Always confirm on SRO before you commit. State Revenue Office 2) Shortlist Suburbs Like a Pro (Not by Headlines) We prioritise streets and pockets  with enduring appeal: school zones (e.g., Camberwell High, Glen Waverley , McKinnon, Balwyn ), rail and tram access, proximity to jobs and health hubs, and liveability corridors (Inner East, Bayside, Inner North, select South-East growth nodes). The goal: assets future buyers and tenants will compete for . What we Analyse: True comparable sales (not price guides from agents) Days on market & stock depth Micro-factors: street noise, streetscape, sun, slope, parking etc 3) See More Than the Portals (Off-Market Access) Public sites ( realestate.com.au , Domain) are only part of the market. Our buyers agents work private agent lists to surface off-market and pre-market  opportunities across suburbs like Hawthorn, Kew, Glen Waverley, Brighton, Brunswick, Carnegie, Bentleigh, Williamstown, Mornington Peninsula —often with less competition and cleaner terms. 4) Do the due diligence that actually protects you Before  you bid or sign: Section 32 (Vendor’s Statement) review:  title, easements, services, planning, notices, OC/strata details. You must see this before  you sign. Consumer Affairs Victoriavictorianpropertysettlements.com.au Building & pest inspections:  structure, moisture, roof/subfloor, termites (higher risk near green corridors). Apartments/townhouses:  audit the Owners Corporation—sinking fund, levies, upcoming capital works. 5) Real Estate Sales Method Mastery (Auction vs Private Sale) Different method of sales have different rules and demand different strategies to win it without overpaying. In Melbourne, the main ones are Auction, Best and Final Offer, Private Sale, Expression of Interest (EOI). Winning at Auctions (very Melbourne) : No cooling-off ; be 100% due-diligenced and finance-ready. Expect to pay a 10% deposit  on the day (unless negotiated beforehand). Set a price ceiling and let a professional bidder control tempo and psychology. Cooling-off rights don’t apply  to auctions (or for three business days before/after). Consumer Affairs Victoria Read our Auction Winning Guide : Understand the tricks and learn the skills needed to win auctions. Winning at Private Sale / EOI : Also known as Expression of Interest , Closed Auction , Best and Final Offer . Negotiate price and terms  (settlement, deposit size, special conditions). In Victoria, most private sales include a 3-business-day cooling-off  (exceptions apply—get legal advice). Consumer Affairs Victoria Read our Private Sale Guide : Learn how to win this or walk away. 6) Price With Precision, Not Hope Your offer price is critical to your success. Not only for the house at hand, it also tells the agent how much you should be respected when you next cross paths. Our price strategy triangulate: Recent, relevant comparables  (same land/position/condition; last 6–12 weeks where possible), Micro-adjustments  (school zone, transport, street appeal), and Live campaign intel  (contracts out, competing interest, agent strategy).That’s how we set tight ceilings  and avoid overpaying. 7) Negotiate Like a Buyers Advocate Would low-ball offers work? You will hope so. We hate hope. We like certainty. Certainty that we will buy it, certainty that we will not overpay for it. Lead with evidence  (not opinions). Use terms  as currency: settlement timing, deposit structure, rent-backs, inclusions. Leverage using a third party negotiator against the agent. We explain why . Keep emotions out; keep process discipline in. (We’ll do that for you.) Related Service: Auction Bidding and Negotiation 8) Lock Down the Legals & Ace the Settlement Engage a conveyancer/solicitor early  to review the contract of sales and manage searches, transfer and settlement. Arrange insurance before settlement; complete a final inspection  within 14 days of settlement; confirm funds via your conveyancer’s trust account. Partners : We coordinate trusted conveyancers, inspectors and brokers to keep things in check. 9) True total cost of ownership Budget beyond the price: stamp duty, conveyancing, building/pest, lenders fees, insurance, council/water rates, OC/strata (if applicable), and planned maintenance (older Californian bungalows, 50s–70s brick blocks, period homes). Use SRO calculators for duty & land tax modelling. State Revenue Office Melbourne Home-Buying FAQs How much deposit do I need? 20% avoids LMI; some lenders accept 5–10% with LMI. Pair pre-approval with a clear buffer strategy. Do I get a cooling-off period? Usually yes  for private sales (3 business days); no  for auctions and for purchases within three business days before/after an auction campaign. Consumer Affairs Victoria AustLII Can I make an offer before auction? Often yes. Your leverage depends on genuine comparables, days on market and vendor readiness. We’ll advise if a pre-auction strike is prudent. Do first-home buyers get help? Check current SRO  guidance for duty exemptions/concessions and the First Home Owner Grant for eligible new homes. Rules change—verify before acting. State Revenue Office Why buyers choose Concierge Buyers Advocates Melbourne Specialists  with deep suburb & street-level intel (Inner East, Bayside, Inner North, South-East, selected growth corridors) Off-market access  and priority previews through trusted agent networks Strong Price Strategy & Risk Management  (Section 32, overlays, building red flags, strata health) Elite Negotiation & Auction Bidding  so you don’t overpay Independent, Fixed fees —no developer kickbacks, ever See Our fees:   Melbourne Buyer Agents Fees Virtual BA (DIY with support):   Buyers Buddy Bid & Negotiate:   Auction Bidding and Negotiation Next steps Book a free strategy session  with a licensed Melbourne buyers agent We’ll clarify your brief, budget and timeline, then build a targeted suburb shortlist We inspect, price, due-diligence, negotiate/bid to win , and manage you through to keys-in-hand Ready to buy with confidence? Let Concierge Buyers Advocates  do the heavy lifting while you enjoy the result. Book now .

When buying properties in Melbourne and Australia, doing your due diligence is important. This is to prevent you from being caught out by surprises. One of the due diligence will include understanding the "material facts" which can influence your buying decision. Doing it properly, can save you from any nasty (and expensive) surprises. In this article, we will discuss what a "material fact" is, what it includes and why they are important in your real estate buying decisions. What is a Material Fact in Real Estate? A material fact in real estate is any information that can affect a reasonable person's decision to buy, sell, or rent a property, and / or the price they would be willing to pay. Sellers and their sales agents have a legal and ethical obligation to disclose these material facts, which can include significant property defects such as structural issues and / or pest or termites infestations, environmental risks such as flooding or bushfire history, and even details about past violent crimes, death on-site or drug use on the property, etc. In Victoria, vendors and their agents have a legal duty to proactively disclose known material facts—not just when you ask. Why Material Fact Disclosure Matters in Melbourne and Victoria. In Melbourne and Victoria, Buyers are protected by 2 disclosure frameworks. These two frameworks forms the backbone of the need for disclosure, and though penalties apply if these aren't fulfilled: Victorian rules on material facts. Consumer Affairs Victoria (CAV) issues guidelines explaining what a material fact is and when agents/vendors must disclose it. The duty is proactive once a buyer indicates interest, and concealing a material fact is an offence. - Consumer Affairs Victoria Australian Consumer Law (ACL) . All agents and vendors must avoid misleading or deceptive conduct in trade or commerce (ACL s.18). Even if a fact isn’t on a list, omitting it can still be misleading in context. - Australian Contract Law What is Considered a Material Fact in Real Estate? A material fact is contextual . It depends on the property, market and what a reasonable buyer would care about when they are deciding if they should buy the property. CAV’s guidance and common practice include examples such as: Structural problems or significant defects : subsidence, major water ingress, termite damage, non-compliant or unapproved works. Orders, notices or legal issues : building notices, council orders, outstanding compliance, unregistered easements. - Legalfinda Safety and cladding risks, asbestos or contamination (including history of meth labs). Natural hazard and environmental risks : flooding risk, bushfire risk, overland water flow, landslip. Neighbourhood or external impacts : planned road widening, rezoning, or developments likely to materially affect value. Stigma/“history” where relevant : serious crimes, deaths or events that a reasonable buyer or buyer agent would likely treat as important. Key point : There’s no exhaustive list . The Material Fact guidelines are probably intentionally designed this way. If a fact would likely influence a reasonable buyer’s decision or price, it should be treat as material. - Consumer Affairs Victoria Material Fact vs Section 32 (Vendor’s Statement) In Melbourne and Victoria, the Section 32 sets out prescribed information (title, rates, easements, notices, etc.). In Victoria, these property related information are disclosed in the Section 32, which accompanies the Contract of Sales. But not every material fact appears in Section 32, and a “clean” Section 32 does not excuse an agent from disclosing other important issues. Think of it this way: Section 32 = mandated disclosures under the Sale of Land Act (Vic) Material facts = everything else the vendor and sale agent knows, that is not mandated in Section 32, that a reasonable buyer would want to know. EG, structural and / or termites issues. If a Vendor Statement and disclosure is incomplete or misleading, buyers may have rights to rescind or claim damages. Speak to your lawyer the moment you discover issues. When Must Agents Disclose the Material Facts? Under CAV’s guidelines, vendors and sales agents must disclose all known material facts as soon as a buyer shows genuine interest (e.g., requests a contract or Section 32, books a second inspection). Knowingly concealing a material fact can attract penalties, and in some circumstances criminal sanctions. Agents also must not mislead by silence under the ACL. Not being asked the question is not a valid reason for not disclosing a material fact. If the overall impression would likely mislead without a key fact, they should disclose it. - Australian Contract Law Case study: Structural Issue Affecting a Property Being Sold in Melbourne Take this very common example. The sales agent knew about a structural issue affected the property they were selling in Melbourne. This could be a disclosure from the owner or a problem discovered by due diligence conducted by the buyers agents. Should they disclose it to all subsequent buyers? Yes they have to . It is not an option. But... How do most agents and owners handle Material Disclosures? Most will keep that under wraps until asked. And even when asked, they might disclose something else minor, hoping you will trust them and let your guard down. We often come across such practices across Melbourne. We'll discuss some recent examples our buyers advocates came across and how we help our buyers avoid issues. Case 1: The Leaning Townhouse of Forest Hill We came across this townhouse in Melbourne eastern suburb of Forest Hill. The agent presented the property as "about to be sold", leaving us with little time to organise a formal inspection. This sales agent appears honest and helpful when asked if there are any structural issues with the property. He said someone else had done a inspection and the roof was flagged as leaking, which the vendor will fixing before settlement. However, our buyers advocates picked up something not quite right about the property during inspection. And the agent's non verbal body language seems "off" when asked about the structural issue. We made our offer, subject to further due diligence. The agent wasn't happy, but we stood our ground. We're here to protect our buyers, not make a quick purchase, unlike other agencies who benchmark their agents. Our independent inspection showed the townhouse was leaning at an angle, and that explained the grabbing doors. We withdrew our offer and the agent was too keen for us to confirm our withdrawal in writing. He's got a 2nd buyer in line to buy it. Good luck to them. He's probably told them our "finance fell through". Case 2: Timber Failure in Ringwood This probably has safety concerns. Another purchase in Ringwood, Melbourne, show a failed roof truff. The timber support truss had failed and broke, in this property which our buyers were interested in. This is pretty dangerous as there are signs other structure is compensating for the broken truss. We submitted our finding to the agents and owners and withdrew our offer immediately. The agent knew about the roof failure and were still marketing the property without that disclosure being upfront for a few more weeks. It was subsequently withdrawn from the market. Case 3: Wavey House in Ringwood Stumping and foundation issues were rather easy to spot. While they might sound concerning, most aren't expensive to fix and isn't as bad as it looks. However, this particular weatherboard house in Ringwood was quite major. There were stumping across several spots and it would be costly. This was flagged as a structural issue to the agent, and we walked away. In this particular case, just because there is a structural issue, does not mean it will affect all buyers. Developers would not mind these material disclosures as they would be demolishing it and rebuilding anyway. So, the same material fact may affect one group of buyers but might not be applicable to the other. The tenants are still living in there, and were at serious risks of roof failure. Does the same material fact affect every buyer? Short answer is no. Case 3 above explained this. But that is not a valid reason for failure to disclose the material fact. Common Examples in the Melbourne Context Some examples which can happen in buying properties in Melbourne includes: A charming period home in a flood overlay—recent overland flow through the yard after storms = material. A townhouse with unapproved deck—no final sign-off; council notice pending = material. High-rise with combustible cladding rectification—special levy scheduled = material. A home used as a clandestine drug lab—even after remediation, the history may be material, especially if a buyer asks. Next door development approved—overshadowing and privacy impact = material to many buyers. Deaths on property—both natural and otherwise = material to many buyers. The same fact may be material some buyers, while it may not bother others. Remember the the definition is contextual to the property and buyer. Consider these examples : Building structural defect . While most buyers would be concerned with structural defects and termite infestations, this may not be material to developers, as they intend to redeveloped it anyway. Drug labs, death on site . While this might not be material to developers, more sensitive buyers might be concerned with past history, so, the developer of the new property has the duty to disclose this when they are selling their newly built property. House with overlays . Such overlays would usually not affect home buyers. However if the buyer intends to redevelop or renovate the property, the vendor and sales agent have the duty to disclose the overlays, even if this may change their buying decision. How Buyers Should Protect Themselves Ask direct, written questions. Email the listing agent: “Are there any material facts we should know about—structural, legal, environmental, historical, or otherwise, that could affect value or our decision to buy?” Keep the written trail. Request evidence. If the agent makes assurances (e.g., “works are approved”), ask for permits, final inspections, or engineer’s reports. Something that was "built more than 7 years ago" doesn't remove the need for permits, even though the sales agent and vendor do not need to produce the permits in the Victorian Section 32. Permits in such cases are more about ensuring the new structure are built to the prevailing building code, ensuring safety and integrity of the structures. Run your due diligence. Do your own building and pest inspections, council planning searches, flood and bushfire maps, owners corporation minutes & budgets, and title searches. We can never rely on the completeness of the material disclosures from vendors and sales agents. From experience, even when agents have the obligations to disclose all material facts, reassurances from sales agents are worth nothing. Things to get "forgotten", "missed" or they might "not be aware" of. Escalate early. If something feels off, ask your conveyancer / solicitor to review the contract and Section 32 before you bid or sign. Use professionals. If you are unfamiliar with Section 32, local Victoria / Melbourne based buyers advocates can help identify concerns in the disclosures (e.g., incomplete Section 32, suspicious renovations, strata underfunding) and push sales agents for disclosure, saving you time, money and stress. What if a Material Fact was Not Disclosed? If you learn about a material issue after signing: Seek legal advice immediately. This is where having the settlement done by a solicitors would excel over conveyancers. Solicitors would be able to escalate this immediately, without the need to engage a third party. Depending on the situation, you may be able to rescind the contract, seek damages, or negotiate price / terms before settlement. Courts have ordered strong remedies where omissions materially affected a buyer’s decision. - Legalfinda Depending on the situation and timing, you might be able to rescind and walk away without penalties. Our clients had been able to walk away without penalties with our interventions, eg, a recent building inspections showed a townhouse complex of 10 units is tilting. Buyer’s Quick Checklist (print this) □ Ask, in writing: “Any known material facts?” □ Review Section 32 & contract with your conveyancer. □ Order building & pest (and specialist reports if needed). □ Check overlays & hazards (flood/bushfire; council plans). □ For strata: obtain OC minutes, budgets, levies, insurance. □ Confirm approvals for renovations/additions (final sign-off). □ Document everything (email trail). How a Melbourne buyers advocate helps At Concierge Buyers Advocates, we combine street-level experience with forensic due diligence to uncover material facts before you commit. Our builder trained buyers advocates spots glaring issues during our initial assessment of the property during onsite inspections, and review Section 32 disclosures, check overlays and pressure-test agent claims against evidence. When something doesn’t stack up, we flag it—and either adjust price / terms or walk you away. Because our builder-trained buyers advocates can spot and identify concerns and issues early in the process, our clients are able to save significant time and costs from further opinion by professionals. Buying in 2025 and 2026? Get an independent second opinion before you bid or buy. We’ll help you avoid overpaying, avoid surprises, and buy with confidence. Sources Consumer Affairs Victoria, Preparing to sell your property – Material Fact Guidelines (definition & duty to disclose). - Consumer Affairs Victoria Sale of Land Act (Vic) updates and material fact disclosure obligations (penalties & proactive disclosure). - Burke Lawyers Australian Consumer Law s.18 – misleading or deceptive conduct (applies to real estate). - Australian Contract Law Section 32 (Vendor’s Statement) obligations (rescission if inadequate). - elaminelaw.com.au Disclaimer : Information provided here and anywhere in our website is general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances.

In an environment where interest rates and cost of living expenses are high and rising, more and more property owners are finding themselves struggling with servicing the mortgage repayments. While some lucky owners are tightening their belts and cutting back on expenses to retain their properties, others may find themselves reacting too slowly or inadequately, leading to precarious situations. If you have a mortgage, having the bank or lender repossess your property is one such situations where no one wants to be in. Now, what happens when you are late on payments and when you receive a call or notice from your bank or lender, indicating your property will be repossessed? This blog article will help explain what goes on during the repossession process, and help you explore ways to avoid getting there. This article is a broad representation of a typical repossession process used by the banks and lenders. And as usual, each of them would usually have variations in this process. What is a Mortgagee in Possession? A Mortgagee in Possession, in Australia, refers to the situation where the lender, typically a bank, financial institution or private financer, takes possession of the property and / or collateral, due to the borrower's inability to meet their mortgage repayment commitments. Essentially, it means the property will be repossessed by the lender because the borrower has defaulted on their mortgage obligations. This Mortgagee in Possession process is initiated to recover the outstanding debt owed by the borrower, after several missed repayments, and over an extended period of time. When the lender decides to initiate repossession orders, it usually means the lender does not believe the borrower will be able to resolve the situation. This also means the borrower might have a debt so high that the lender are unable to recover without selling the property or any other collaterals. Or it can also means the lender and borrower are unable to work collaboratively to avoid a repossession. What Happens Before a Property is Repossessed? The lender will usually try to be fair and work with you to define a plan for you to catch up with the arrears. This could be restructuring the mortgage, agreeing to give you a pause in repayments (repayment holiday), etc. It is in your best interest to work with the lender to either resolve the outstanding debt or define a way forward, with the lender. If this fails, or the borrower could not agree to a way forward, the lender would be left with no choice but to initiate the repossession process. What is the Property Repossession Process in Australia? If all else fail, and the lender decides to proceed with the repossession, here is what usually happens. As usual, different lenders and different circumstances would have a slightly different process. But here's what typically happens when a property is repossessed: Notice of Default : The lender sends a notice of default to the borrower, informing them that they are in breach of their mortgage agreement due to missed payments. They will encourage the borrower to work with the lender to arrive at a solution agreeable to both parties. Attempted Resolution : The lender will usually attempt to work with the borrower to find a solution to the delinquency, such as renegotiating the terms of the loan or offering a repayment plan. Some lenders will try to work with the borrower before sending a notice of default. Legal Proceedings : If the borrower fails to rectify the default or comes to an agreeable solution, the lender may commence legal proceedings to repossess the property. This involves obtaining a court order for repossession. Repossession : Once the court grants the repossession order, the lender takes possession of the property. This may involve physically evicting the occupants, if necessary. And you may come home one day with the locked changed or the doors sealed. If it is a rental property, the renters would usually be allowed to complete the lease term, within reasonable time frame, or they may also be evicted after serving a notice of eviction. Sale of the Property : After repossessing the property, the lender typically seeks to sell the property, in order to recover the outstanding debt owed by the borrower. Depending on the lender, situation and the property, the property may be sold through auction, private sale, or other means. Auction is usually the preferred method, as it is usually seen by the legal team as the most transparent and least biased. Debt Settlement : If the proceeds from the sale of the property do not cover the full amount owed by the borrower (including the outstanding mortgage balance, interests, late fees, penalties and any debt recovery, management, legal and associated costs, etc), the borrower is usually still liable for the remaining debt. In some cases, the lender may pursue further legal action to recover this debt, including seizing any other securities, properties, etc. Lenders Mortgage Insurance (LMI) : If the borrowers have lenders mortgage insurance, the lenders will recover the shortfall from the insurer. But that doesn't mean the borrower get off scot free. The LMI insurer will, in turn recover this shortfall from the borrower. Surplus Funds : If the sale of the property generates more proceeds than the total debt by the borrower, the excess funds (surplus) may be returned to the borrower, depending on the specific circumstances and applicable laws. Bankruptcy : If the sales did not cover the mortgage and cost of repossession, and you are unable to find funds to cover the outstanding debts or reach an agreement to repay the debts, the creditors may be forced to apply to make you bankrupt. How long does the Repossession Process take? In Australia, the process usually takes between 2 to 3 years. IE, most mortgagee in possession properties will hit the buyers market after a lengthy 2-year process. It's important to note that the process and duration of repossession and sale of a property can vary significantly depending on factors such as the terms of the lenders' internal processes, lenders' mortgage agreement, state laws, negotiations between lender and borrower, lender's and the borrower's circumstances, etc Does Bankruptcy Ends Your Debt? Contrary to popular believes, being bankrupt DOES NOT wipe you debt . You are still liable to repay your debts. Your income, salary, other properties and possessions of value may be garnished, force sold and the returns distributed to your debtors. In addition to your name being recorded permanently in the National Insolvency Index (NPII), you will also face travel restrictions, inability to run a business, difficulty obtaining future credit, insurance, etc. Your debt is only wiped after the bankruptcy ends, which can vary from 3 years 1 day up to 8 years. The credit scar, however, can stay with you forever . How Can You Avoid Ending Up in the Mortgagee in Possession Situation? To avoid ending up in a mortgagee in possession situation, we need to go back to investment and money making basics. By being prudent with your spending and borrowing, one can usually avoid ending up in such a difficult situation. Mortgagee in Possession situations almost never happen overnight. The repossession process is lengthy and expensive. It can cost tens of thousands to hundreds of thousands to the lender. This cost, however, is usually added to your total debt balance. Repossessing the property is usually the last stage of managing a debt in default, and it is a stage where no mortgagee wants to get there. The lender is only keen to recover the debt, and they will work with you to recover the debt. As a borrower, here are a few very simple and basic concepts to prevent yourself from getting into the repossession situation: 1. Avoid Overextending yourself Never stretch yourself beyond your means. Assess your financial capability meticulously. While a mortgage broker may suggest you can borrow a certain amount based on your income and expenses, you still have to responsibility to borrow diligently. Before committing to any further debts, ask yourself essential questions: Do you need to buy a property worth that amount? Can you comfortably manage the monthly mortgage payments? Is investing that amount in property the best choice for your financial situation? What if you lost part or all of your income? Can you still comfortably afford the mortgage? As much as mortgage brokers tries to help you find the best mortgage, no mortgage brokers or financial experts know you better than you do. Always remember, mortgage brokers earn commissions based on the amount you borrow, so some unscrupulous mortgage brokers will push for higher borrowing. Be cautious and prioritize your own financial stability . 2. Be wary of Free Property Investment Seminars by Spruikers We get it. Free property investment advice sounds like a steal. But let’s be honest: we know there’s no such thing as a free lunch. We’ve sat in rooms where smiling “property gurus” hand out coffee and promises, only to push you toward developer-funded property "deals" that line their pockets, not yours. They’re banking on your naiveness, excitement (and your budget) to drive their commissions. Often, it’s the very property investors and buyers who cannot afford a loss who get caught in these traps. And this brings us to the next point. 3. Avoid Negatively Geared Properties Negatively geared properties involve incurring losses with the hope of future profits. It effectively means you're losing money, hoping to make money in future. This strategy is typically suitable for wealthy investors who can absorb losses without significant impact to their lifestyle. Unfortunately, spruikers and fake property investment "strategists" and real estate project marketers often use such free property investment seminars to target individuals, selling massively negatively geared properties, promising "potential future growth". While negative gearing may sound good, it should be used with caution. Negative gearing can bite you very hard during a property or economic downturn and when interest rates are rising. Before diving into negatively geared investments, consider whether you can afford the risk: Can you afford to potentially lose the property? Assess the implications of high-interest rates on such investments. It's concerning that some individuals explore negative gearing when interest rates are high, without fully understanding the implications. Negative gearing is effectively losing more money to save on taxes. It's akin to losing a dollar to save 30 cents – a scenario nobody should desire. In the Australian investment environment, how do you like losing $1, just to save 30 cents? I'll send you my bank details, if you like that. For every dollar you deposit, I'll return 30 cents to you. Okay... Let's make it 35 cents, for every dollar you send us. By adhering to these principles and making informed decisions, you can safeguard yourself from the risks associated with Mortgagee in Possession situations and ensure a more secure financial future. 4. Chase Quality not Quantity Choose your investment properly. Go for quality, not quantity. There is no need to chase X number of investment properties. The idea of more investment properties equates to greater wealth is used by property spruikers for marketing purposes. They earn commission for every property you buy. That's why. Do they really own those property? No. As long as they have a mortgage on them, the bank does. 5. You Only Need 3 Properties to Retire You do not need hundreds of houses to retire. You only need 3 good, strategically selected ones to retire. This article explains what it takes for you to retire. By being careful with the properties you select, you can be a step ahead of everyone else, without overextending yourself, and stay out of debt. What Should You Do, if You Think Your Property May Be Repossessed? If you're concerned that your property may be repossessed due to financial strain, it's essential to take proactive steps to mitigate the situation:: Review your expenses: Conduct a thorough review of your expenses to identify areas where you can cut back. Look for non-essential expenses that can be eliminated or reduced to free up more funds for mortgage repayments.. Increase your income: Consider ways to boost your income, such as taking on a second job or pursuing opportunities for higher-paying employment. Generating additional income can help alleviate financial pressure and improve your ability to meet mortgage obligations Assess Troublesome Properties: Evaluate which properties in your portfolio are causing the most financial strain. Identifying these properties allows you to prioritise them for action, whether through restructuring loans, refinancing, or selling the property. Explore Refinancing : It might be too late, as the banks would have tightened their lending, so, you might not be able to refinance. But it is worth a try. If you're using a mortgage broker though, be wary what you info you share. Mortgage brokers usually have connections asking for cheap properties. They will be low balling your properties. Talk to the Bank or Lender : This might be counter-intuitive, but remember, the banks are not in the real estate business. They want their money back and they will be keen to work with you to try to recover what you owe them. Explain your situation to them, and if you are sincere and cooperative, they might be able to work out a payment option with you. They may allow you to delay your payments, or restructure your mortgage to lower your monthly payments, or allow you to try to sell the property. Explore Selling Your Property: If you're struggling to maintain multiple properties, consider selling the properties that are causing the most financial stress. OR selling the properties with the most equity in them. Liquidating assets can help alleviate financial burdens and prevent / slow further escalation of debt. There is no single best solution, but if you would like to have a chat with us, we can help you assess your best option. Seek Professional Assistance: Reach out to professionals such as buyers advocates and property investment advisors like us , or financial advisors who can provide guidance and support during this challenging time. Consult with financial advisors or property experts to explore viable solutions and navigate the repossession process effectively. Be Proactive : This may be a stressful moment for you, but it is not the time to be emotional. Do not delay seeking assistance if you anticipate repossession. Acting promptly allows you to explore options and take necessary steps to protect your financial interests before the situation escalates further. You need to avoid getting yourself into a repossession situation. Be Proactive. Act before the bank does. What Should You do to Avoid the Mortgagee in Possession Situation? Borrowers facing financial difficulties should seek advice from a financial counselor or legal professional to understand their rights and options. Consider selling some or all properties, before the bank does. If you are selling, selling through a real estate sales agent is NOT the only way to sell your property. Consider using effective, low-cost options, such as selling it yourself, to your friends and relatives. Also explore our vendor advocacy options, where we can either match a buyer for your property, at no cost to you . We help to find the best agent to sell your property, plus keeping them honest, saving you from paying excessive sales commissions, or help you find the best sales agent and keep them honest. Can You Negotiate with the Mortgagee to Avoid Repossession? Yes and no. It depends on how far you are behind in repayments, how cooperative you had been with your Mortgagee, your relationship with the Mortgagee and your personal circumstances. But if you have been proactive, chances are, you can avoid getting yourself in this sticky situation. And if you do get into a potential repossession situation, your mortgagee is more likely to work with you for a mutually beneficial situation. But if you (or your mortgage broker) had been dodgy and lying to the mortgagee, you can be sure they will be the least cooperative when you needed them. Always be proactive, upfront and honest with your mortgagee. How can You Negotiate with Your Mortgagee? If you are early in the process and your mortgagee allows it, here are some tips to negotiate with your lender. Things You Should Remember When You Negotiate With the Mortgagee There is one fundamental thing you need to remember when you negotiate with the lender. The business model of the major banks and lenders is not about owning properties or selling properties. They lend you the money for your properties on the premise that you can repay the principal plus the agreed interests. Thus, within reasons, banks will try their best to negotiate, and accommodate your needs, so they can avoid having to force sell your properties. If all things failed, and they have to force sell your properties, it means they believe it is too late, and they do not see you recovering from your debts. This also means they will not be the happiest person. It is a business transaction to them, with no emotions attached. If they have to take possession or your property, you can be sure they will send their best team to do it, in the shortest time possible and with the highest possible fees, interest rates and charges. Always remember, interests on your debt do not stop accruing until you pay it off or until they make you bankrupt. What Happens After Your Property is Repossessed and Sold? After your property is repossessed and sold, the best you can hope is for the sale to clear all of your debt. This gives you the opportunity to start afresh, sooner. If you are in a negative equity situation, you're in big trouble. Your property will be force sold and you'll be left with the balance of the debt. Thus, low deposit schemes, and high yield properties (which usually means very low or negative growth), should be avoided where possible. After Selling, Can You Ask for Early Release of Deposit to Pay Off Your Debts? In some states, such as Victoria, you, as the seller might be able to ask for an early release of the deposit after selling your property. In Victoria, the Section 27 for allows the sellers to make this request. However, as a person with debts in default, trying to ask for an early release of deposit is a tricky question. The answer is yes and no. There is no straight forward answers. It depends on how cooperative you had been, how honest and upfront you had been, and the reason / purpose for asking an early release of your deposit. This request needs inputs from the mortgagee and the buyer's conveyancer / solicitor. The mortgagee/s will include information such as: Amount you owe, and at what interest rates Are you in default (ie, have you missed payments) Mortgagee's inputs (advice) to the buyer's decision process. When the buyer's conveyancer or solicitor realise the debt is in default, chances are, they will reject the early release of money. As the buyer will be assuming the responsibility of losing the deposit, if the settlement does not proceed. That said, money from the sale of your property has to go towards paying off your mortgage and debt. So, the money technically, does not belong to you. It belongs to the mortgagee. Any money that is released early has to go off paying the secured debt as a priority. So, while you might hope you can use the deposit to relieve your debt situation, you might realise you might not see a cent of it. However, if you had been upfront and honest dealing with your mortgagee, you would have built up enough trust with the mortgagee, the mortgagee might let you access some of the funds to pay off your other debts, if they are confident there would have sufficient funds remaining in the proceeds of the sale to cover your debts. This is why, if you're starting to find yourself struggling to service your debt, you need to be honest with your mortgagee. Mortgagees will usually dislike borrowers who are not honest with them. How Long Does It Take to Repossess Your Property? The repossession process may take up to 2-3 years of more, and your debt does not stop accruing interests, even when you no longer have access to your property. You are usually liable for any interest accrued until your debt is completely paid off. If your debt still remains after the property is sold, the court may grant the mortgagee the right to garnish any other assets, monies from your savings, and / or income or salary. Mortgagee will usually not stop, until they recover every cent you owe or until they make you bankrupt. Can Buyers Advocates Help You Avoid Repossession? Buyers Advocates can play a crucial role in helping you avoid repossession by providing timely assistance and access to potential buyers for your property: Access to a Pool of Buyers : Buyers Advocates have established networks and connections with qualified buyers, ready to buy properties. By reaching out to them, you gain access to a pool of interested buyers who are ready to purchase your property. Swift Action and Response : If you suspect that your property may be at risk of repossession, it is essential to act swiftly. Buyers Advocates can provide immediate assistance and support, offering guidance on the best course of action to protect your property interests. Opportunity to Sell Before Repossession : By engaging with Buyers Advocates early in the process, you have the opportunity to explore selling your property before repossession proceedings begin. This proactive approach can help you avoid the negative consequences associated with repossession. Potential Cost Savings : Selling your property through Buyers Advocates may result in significant cost savings compared to traditional real estate transactions. Because these buyers have already paid the buyers advocates a service fee, they will not charge you any sales commissions. With no commissions involved and access to qualified buyers, you can usually sell your property fast and saving tens od thousands of dollars in commissions, fees and expenses. Expert Guidance and Support : Genuine Independent Buyers Advocates  offer expert guidance and support throughout the selling process, helping you navigate complexities and make informed decisions. Their industry knowledge and experience can be invaluable in securing a favorable outcome. SPEED Prevents Further Financial Strain : Debt interests do not stop accruing until the debt is paid off. By selling your property fast before repossession occurs, you can prevent further financial strain and minimize the impact on your credit rating and financial stability. Buyers Advocates can help expedite the sale process, ensuring a smooth transition and resolution. Timely Intervention : Seeking assistance from Buyers Advocates at the earliest indication of financial difficulty allows for timely intervention and mitigation of potential risks. Their proactive approach can help you address challenges effectively and protect your long-term financial interests. If you are in a no-return situation, the earlier you sell, the less interest and debt recovery costs you will owe your bank/lenders/creditors. Talk to us Before the Bank Repossess Your Property We hope our readers do not find themselves in such a situation. But if you do, talk to us. Our Buyers Advocates will discuss how we can offer proactive and effective solutions for avoiding repossession by facilitating the sale of your property to qualified and ready buyers. Our expertise, network, and timely intervention can make a significant difference in preserving your financial well-being and securing a positive outcome for you. We have a constant pool of buyers who are ready to buy your properties. If your property meets the criteria our buyers are looking for and they buy it, you can save yourself over $30k-$100k or more in sales commissions and other expenses. This is quite a substantial savings, but you will need to come to us before the bank initiates their debt management and repossession process. Disclaimer : Information provided here and anywhere in our website is general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances.

We all know the selling price at auctions is primarily determined by competitive bidding between potential buyers. The highest bid ultimately determines the final sale price, provided it meets or exceeds the seller's reserve price. But did you know there are many other factors influencing how much a buyer will pay for the property? This is one of the most frequently asked question by our home and investment property buyers. While we love to be definitive with our answers, this is unfortunately a question where there is no straight forward answers. The selling price at auction depends on too many factors. From observations, a few key factors seems to be influence the direction of an auction results in Melbourne more than the other. One of these factors came as a surprise, and it seems to have the most significant negative effect on the auction price. In this article, we will discuss our observations from our experience. We've been running our buyers advocacy business for 10 years, and from observation, we've identified some significant factors which determines the direction of the auction. For ease of reading, we'll split these factors in positive factors which can push the price upwards, and negative factors which drags the price down. Of course, all of these factors should be considered in conjunction with understanding the value of the property, which is the price buyers will pay for the house. What Determine The Selling Price at Auctions? We started this interesting statistics collection exercise about 5 years ago, but due to the pandemic disruptions, we are unable to collect sufficient data. Post pandemic, we managed to start collecting meaningful statistics from 2023. Over the past 2 years, our buyers agents have attended close to 500 auctions throughout Melbourne, and have collectively noted and classified factors that seems to have an affect on auction prices. How Were Our Studies Conducted? To keep our findings both precise and unbiased, we began by establishing a realistic price appraisal for each property we are observing. This is the price which the properties will sell for, not what the sales agent wants to advertise at. From there, we logged every variable parameter of the sales campaign, open-for-inspection schedules and metadata, agent presentation and rapport, auctioneer performance, as well as auction metadata such as date, time, weather and location. Finally, we recorded whether the property sold at the auctions and if so, the price achieved at the auction. This rigorous dataset allowed us to isolate the impact of each factor on the eventual sale result. One Common Sales Campaign Practice is Costing Sellers $100k From our pool of data, we noted some interesting findings. While most findings are expected, one major factor surprised us. This is a man-made practice that is getting more common in Metropolitan Melbourne, especially in the eastern and south eastern Melbourne suburbs. And it is a practice that is made up by sales agents out of convenience, and this can cost the seller a hundred thousand in selling price. Yes, a big $100k drop in selling price. Let's start dissecting our findings. While this study is based on Auction campaigns, many of these factors are applicable to other types of campaign, such as private sale , best and final offers (BAFO) , expressions of interests , set date sale , etc, as well, as it affects the buyers interest and impression of the property. Factors Which Can Positively Affect the Auction Price: Let us start with some of factors which can positively influence the price, in no particular order: 1. Well Staged Home Meticulously styled rooms help bidders visualise an aspirational lifestyle, turning a house into a “must-have” home rather than a negotiable asset. While it might cost between $3k to $30+k for a professional to stage the property, the fresh paint, curated furnishings, and strategic lighting, help the buyer visualise the house as a warm, welcoming home that they would want to live in. As experienced buyers advocates in Melbourne, we see staged properties in South-East Melbourne suburbs like Glen Waverley routinely fetch 5–10 percent above comparable, un-styled listings. 2. Well Run Auction Campaign A well-run multi-channel marketing campaign—professional photography, social media reels, print ads, and targeted buyer databases—builds momentum long before auction day. High enquiry volumes and high traffic during inspections create social proof, signalling to onlookers that the property is hot and justifying more assertive bidding. In our study, our team assesses South-East Melbourne property campaigns, measure campaign reach as a lead indicator of how high the reserve is likely to be pushed. 3. Clear Articulation of Price Expectations Transparent, honest and realistic pricing range and well-explained vendor instructions and reserves give buyers confidence that the agents are honest and not being sneaky. That valuable trust increases the active bidder pool, which statistically drives a stronger final price than a guarded, secret-reserve approach. Experienced buyers agents read these signals early, help you understand the real situation and help you determine a series of realistic auction prices, ensuring you enter the auction with confidence that you are not overpaying, rather than second-guessing the seller’s reserve and intent. 4. Weather It does not matter how well a sales campaign has been run. The weather on the day of auction can play a significant role in determining the auction prices. Blue skies and mild temperatures encourage casual onlookers and neighbours to attend, swelling crowd size and lifting competitive tension. A warm (not hot), bright sunny day also help cast a good light on the property and help create that "FEEL" in buyers and bidders, usually resulting in better sales performance. Smart investors, or their buyers advocates Melbourne-wide, do adjust bidding tactics on the day in line with the forecast. 5. Day and time of the Auction Saturday late-morning slots to early afternoon is the Goldilocks time for property auctions. This period tend to draw the largest audiences, as families finish sport commitments and start their property inspections. Weekday evening auctions can feel exclusive, but they also filter out casual bidders, and usually reduces the final auction price. Understanding these dynamics guides buyers agents and savvy buyers in selecting which auctions to prioritise and determine the auction bidding strategy. 6. Quality Auctioneer The role of the auctioneer is more than the emcee of the auction event. An engaging auctioneer paces bids, creates a sense of urgency, controls the atmosphere, and leverages vendor bids to maintain urgency—often extracting tens of thousands more than a monotone caller could. Their charisma also keeps bidders emotionally invested long enough to stretch past pre-set "walk-away" prices. Something which DIY bidders always fall for and ended up overpaying. When our buyers agents prepare clients for auctions, we factor the auctioneer's reputation into our risk assessments before committing to our bidding strategy. As a independent licenced buyers agents, we are not vested in the purchase, we are the neutral buyer advisor and gate keeper, we help pace the auctions to our buyers' benefit and provide our buyers with instantaneous advice on the spot , giving our buyers the confidence to stay on track, thus preventing over bidding and over paying for their properties. 7. Support from other Sales Agents When multiple agents from the agency attend the auctions, they help encourage buyers and bidder bids, amplifying competition. As much as they try to deny, the role of these agents are not there to "help you bid". Their role is to encourage hesitant bidders to re-engage, impose more psychological pressure on the buyers to help they stretch their budget and offers. We understand their real intent and role during the auctions. These agents would usually politely stay away from our buyers at auctions as a matter of professional courtesy. For sticky agents, we have strategies to engage them as we see need. Recognising this orchestrated energy helps our buyers advocates decide on the appropriate bidding strategy DURING the auction. Yes, we do adapt and change our strategy depending on our observations throughout the auction. Factors Which Can Negatively Affect the Auction Price: What about factors which can negatively affect what buyers will bid at auctions? 1. Poorly Run Sales Campaign While it might seem expensive to engage a professional real estate photographer (yes, not just any photographer), poor quality photos, rushed marketing, and unprofessional advertising, often results in poor buyer awareness, and the campaign never reaches critical mass. With low inspection numbers, the campaign loses momentum quickly and does not attract enough bidders to create a frenzy. Our buyers advocates rarely see such campaigns across South-East Melbourne property corridors. Most sellers understand the need for a proper professional campaign. A poorly run campaign will stick out like a sore thumb in this part of Melbourne. 2. Confusing Messaging from the other Sales Agents While most sales agents in and around the eastern and south eastern suburbs of Melbourne believe a low advertised price range can attract more buyers, they often ended up attracting the wrong buyers with misguided expectations. They know the practice of underquoting is illegal in Victoria, and official narratives from the sales agents are always "the quoted price range is realistic, it is what the we believe in". So, while intentional underquoting is illegal, the sales agent can be legally " bad at appraising " the property. Underquoting and keeping the reserve price secretive, or multiple agents giving conflicting campaign strategies, confuse buyers and cause buyers to lose trust and retreat to the sidelines. That uncertainty thins out serious bidders, usually leaving only cautious token offers from buyers with the wrong budget expectations on auction day. Our experienced advocate independently appraises the property, and matched it with our buyers. We decipher mixed signals early, sets a disciplined ceiling price, and sets our strategy based on the confusing messaging. 3. Unfavourable Weather - gloomy, rainy, cold If good weather can help achieve better auction prices, rain, wind, or extreme heat on the other hand, can literally dampen the auction turnout and the final auction price. Fewer bidders often equate to a softer results, and auctions being passed in, even if the reserve price is reasonable. Savvy buyers and investors, or their buyers advocates Melbourne-wide, adjust bidding tactics on the day in line with the forecast. 4. Location of the Auction When the weather turns bad, auctions are usually moved indoors and held at the property's lounge / dining room. When this happens, the double whammy of bad weather, and enclosed space often results in lower auction prices. 5. "Shoes-Off" During Open for Inspections Asking visitors to remove footwear can feel intrusive, extending wait times at the door and breaks the emotional connection to the home. Our buyers agents are at the forefront of receiving these unfiltered feedback. The number of times our buyer clients complains or refuses to attend open for inspections if there is a "Shoes-off" policy tells us that this is really a crowd dampener. The crowded mess of shoes at open for inspections is hardly the way to greet visitors. The mess often cause confusion, frustration and anxiety right before the guest enters the property, killing any " love at first sight " vibes. Crowds that should be buzzing turn impatient, shortening tempers, inspection durations and lowering perceived value. Our buyers agents know a shoes-off rule often signals a poor auction and sales results and sees this as opportunities to pick up good deals for our clients. 6. Combination of all the Above Factors If one of these factors is bad enough, what would a freak combination of many of these factors cause? At a recent auction for a $3million house in Balwyn North, a freak combination of Shoes-off, bad weather and indoor auction, costed the vendor some $700,000. That's right. The sales agent appraised the property at $3.5million, but the freak combination of negative factors meant the house was sold for $2.8million at the auction. Our real Appraisal puts the price at $3.2million - $3.3million. Even compared to our realistic appraisal value of $3.2million, it was some $400,000 short. The Surprising Factor that Can Reduce a Property Price The above study confirmed what many buyers advocates believed in. Location, day, time, weather, agent's presentation effort, etc, will all affect the outcome of the sales and auction campaign. What surprised us, is the "SHOE" factor. Our hypothesis that a "shoes-off" campaign hurts prices, seems to be true! Open for inspections where the buyers need to remove their shoes often results in a lower selling price. To help us understand why, we did a follow up survey, asked a few agents to understand why is there a need to remove shoes and interviewed a few buyers on how they feel about removing their shoes. The results are not unexpected. We discussed this "shoes-off" policy in our other article , where we try to understand the impact of "shoes-off" campaign and its effect on property prices. A few real estate agents were asked why they believe in the need for a "shoes-off" open for inspection campaign. We also interviewed some buyers, as well, on their thoughts of walking into a "shoes-off" inspection. The results are equally eye-opening. Read the article for more information . Conclusion So, now you know. On top of what other auction spruikers have taught you, these are the real factors affecting the auction prices. If you are attending an auction, get in touch to explore if our buyers advocates can help you understand the mechanics of an auction, and discuss the strategy we may adopt for the auction.

At first glance the “please remove your shoes” sign feels polite—even culturally respectful. Yet our two-year Melbourne study of 500 auction campaigns in Melbourne tells a different story: homes that enforced a shoes-off rule sold for $50,000–$100,000 less than comparable listings that let buyers keep their footwear on. That finding echoes what international buyer agents have long suspected: add friction at the front door and you shrink the final cheque. The practice of getting buyers to remove shoes during open for inspections are increasingly becoming a common sight, especially in the Eastern and South Eastern Melbourne suburbs. While this may seem like an innocent requirement "from the seller", what we discovered seems to suggest otherwise. And it often have a negative effect on the property price. In this article, we dissect the study and attempts to explain how shoes affect the property price. Does Shoes-Off Inspection Campaign Hurt House Prices? Many agents justified this popular practice as "a requirement from the owners". However, we observed some agents were wearing shoes IN the very same house. While a "no-shoes" campaign may seem innocent, and might be convenient for the sellers or occupants, our studies suggested something shocking. Our studies revealed that a "shoes-off" open for inspection campaign can cost the seller between $50k-100k! Yes, over the 2-year study, our observations suggested that Open for Inspections with a "shoes off" requirement routinely results in an average lower price of $50k, and in one case, costed the seller up to $100k! At a recent auction for a $3million house in Balwyn North, agency contracts shows a price expectations of $3.5million, not impossible, given our Real Appraisal(TM) price of $3.3million. That house was unfortunately sold for $2.8 million, $700k short of vendor's expectations, and $500k less than our realistic appraisal. The contributing factors? Shoes-off policy is one of them. The Shoes-off Policy is one of the factor contributing to a shock $700k less than expectation. Why a "Shoes-Off" Campaign Can Quietly Slash Your Sale Price Picture this: you arrive at what should be a beautifully presented home, only to be confronted by a jumble of scuffed sneakers and sandal odours blocking the entrance. Instead of a warm welcome, buyers meet clutter, discomfort and a whiff of hygiene worry. This is hardly the right way to create a good first inspection for potential buyers. It does not give property buyers a welcoming impression at all. While some buyers we spoke to understand it might be easier to keep the house neat, many felt disgusted at the pile of shoes at the entrance. Our buyer interviews revealed three consistent turn-off: Poor first impression – A messy shoe pile screams disorganisation, not prestige. Health & safety fears – Strangers’ foot hygiene, foot rot, the risk of stepping on sharp debris, even athlete’s-foot anxiety—all put buyers on edge. Interrupted flow – Buyers fetching, taking off and putting on footwear to see the backyard or garage, broke their emotional connection with the home. Shoe Anxiety – Buyers worrying if their shoes will be misplaced and even stolen. This off-putting friction shows up on auction day or when the deal is sealed. Campaigns that enforce a "shoes-off" policy during open for inspection averaged about $50,000 less in the final price. In one well-presented house in Glen Waverley, the discount is huge! It sold for between $100,000-$150,000 LESS  than our expectations, despite the auction being held in a perfect weekend weather and strong marketing. Everything about the campaign and auction was well choreographed. The only exception we noted was its "shoes-off" inspection campaign. Now, contrasting this negative result with a successful campaign run by a different Glen Waverley agency that knows their clientele. This agency usually do not require buyers to remove their shoes at their inspections. The results they achieve for a newish property at Wheelers Hill was outstanding. The campaign was run professionally, do NOT require buyers to remove their shoes and the property was sold for more than double the median price of properties on that street ! Yes, the property was sold for $2.62m in a street where the typical price is $1.2m , beating every buyer's expectations. What the “Shoe Factor” Really Tells Us Our two-year data set may have quantified the impact, but our buyers advocates in Melbourne have long suspected that bad first-impression friction erodes a property’s emotional appeal—and therefore its price. Day, time, weather, even agent charisma all play a role, yet nothing surprised us more than how consistently a “shoes-off” policy shaved tens of thousands off the final bid. To understand why, we went straight to the source. We interviewed some agents and buyers on their thoughts of the "shoes-off" policy. And here's what they said. Why Agents Insist on Shoes-Off Presentation control – Agents claimed that vendors want pristine carpets, especially in high-spec South-East Melbourne homes with pale wool or timber floors. While this might be true for some cases, it is usually the agent's who prefer not to deal with a potential mess of shoe prints in the house. Perceived luxury – Some agents believe a shoes-off rule signals exclusivity, likening it to boutique retailers that ask buyers to wear gloves. To be honest, we had seldom seen this "glove" being done in Melbourne Cultural respect – In multicultural suburbs like Glen Waverley and Box Hill, removing footwear aligns with many owners’ customs. “It helps us keep the floors spotless” one top-performing agent confessed—and admitted sellers often do not have an opinion. While some might be valid concerns, genuine luxury homes, however, do not enforce such no-shoes policies. They provide shoe covers, if the agents or sellers are genuinely concerned. Sales agents for luxury home understand happy buyers are happy spenders and they would rather inconvenience themselves than affect the buyers "feel" for the property. Why a Shoes Off Policy is Just a Feel-Good Illusion In theory, banning shoes at an open home sounds hygienic. In practice, it’s anything but. Here’s why: Bare feet are scentful bio-hazards. Warm, sweaty soles breed bacteria and fungi. Think tinea, athlete’s foot and delightful wafts of Eau de Gym Sock. You get the idea. They’re every bit as capable of tracking nasties through a property as rubber soles. Now this nasties go straight through the socks to your feet. Cleanliness goes out the back door (literally). Buyers routinely wander from living room to garage, backyard and shed, barefoot or in socks, then bring that that garden dirt straight back inside. So much for a spotless floor. Agent hypocrisy (here’s the kicker). Watch closely and you will see plenty of agents walking around in their polished loafers while lecturing punters about removing shoes. If they don’t respect their own policy, why pretend it works? Bottom line: The shoes-off rule offers is more a convenience to the agents than hygiene. Responsible agents should focus on a proper post-inspection clean instead of feel-good gimmicks. How Buyers Actually Feel About the Need to Remove Shoes "I'm not Going In"  – This is the exact feedback from some of our buyers. And we know the outcome. Awkward entry – Interviewees likened the shoe pile to a security checkpoint: “I felt like a gate crasher walking into a slump, not a welcome guest.” Disgusted – Buyers are disgusted at the sight and smell (yes, some shoes do smell) of dirty shoes at the entrance and socks in the house. Health Concerns – Many buyers are also concerned with feet borne diseases, such as foot rot, tinea, hand-foot-mouth diseases. Discrimination – Some buyers felt discriminated against as they were made to removed their shoes, against their podiatrist's health advice. Interrupted flow – Multiple trips to reclaim shoes, taking off and putting on the shoes, for the patio or garage inspections broke their emotional connection to the home. It is disruptive, one said. Shoe Anxiety – Some buyers were afraid others might mistakenly wear the wrong shoes. One upsizer summed it up: “If they’re that precious about dirt, how realistic are they with the price?” Health Concerns of Shoes-off Policies are Valid In addition to putrid smell, the health concerns of "shoes-off" policies are valid. Recent studies shows the socks in the single piece of clothing item that contains the most germs and yuckies . https://www.thenewdaily.com.au/life/health/2025/08/04/feet-socks-bacteria-fungi#google_vignette Are there Better Solutions to a "Shoes-off" Inspection? Yes there are. Shoe covers are available. Instead of inconveniencing buyers with the logistics of dealing with shoes, providing shoe covers is usually a more practical and convenient option. It keeps the dirty shoes off the floors while keeping the entrance neat and welcoming and allows the buyer to enjoy the inspection without the inconvenience. The Take-Home for Vendors and Sales Agents Agents or sellers could also engage cleaners to clean up the house after inspections, if they are concerned. With a typical campaign having 8 to 10 opens and each clean costing about $200, a $2,000 professional-cleaning cost is peanuts compared to a possible $50k–$100k harm to property prices . A smooth sales campaign and pleasant buyer inspection experience is the key to higher prices. By removing friction instead of footwear, sales agents keep crowds larger, engagement warmer and bids climbing—exactly what a well-run Melbourne property sales campaign is meant to achieve. Should Sellers Insist on a "Shoes-off" Inspection Campaign? Honestly, if I were the seller, I would rather insist the agent NOT run a "Shoes-off" Inspection Campaign, than to risk a $100k drop in property price. I would spend the couple of hundred dollars cleaning the property after each inspection, or provide shoe covers. I would invest in that, to get that extra $100k in selling price. Getting the house cleaned after every inspection does not cost $100k. And of course, as with everything in life, there are always exceptions. There are cases where such properties were sold for a high price. But these are the exceptions rather than the norm.

Post COVID pandemic, the 2 years of rising interest rates to curb high inflation has created a huge problem for some home owners and investors. Times had been tough post pandemic and there are no significant relief in sight. Some home owners and investors who had bought during the historic low interest rates since GFC and during the COVID-19 pandemic are feeling the pain now, as mortgage rates rose from around 2% to around 7% currently. As a result of rising interest rates, we're seeing many homeowners and investors who had taken full advantage of the low interest rates fall behind in mortgage repayments. Rental income is no longer sufficient to cover the interest charged by the banks / lenders and the ongoing maintenance of the properties. While the lucky few who had planned for rainy days and had been able to reduce unnecessary expenses to try to ride through the tough times, some are finding themselves struggling to maintain a basic living with the overbearing costs of mortgage. More and more mortgage holders are getting calls from their banks and lenders to discuss their overdue payments. Many are in a situation called mortgage stress at the moment. If this goes unmanaged, homeowners and property investors can find themselves in a Mortgagee in Possession situation, where the property being mortgaged (and any other securities) are being forcefully sold by the lender. In this article, we will discuss what you can do, and how you can prevent yourself from getting into the mortgagee in possession situation. How Can You Prevent Your Property from Repossession in Australia? Let’s go back to the basics of investment and money management . By being prudent with your spending and borrowing, you can usually avoid falling into a mortgagee in possession situation. In simple terms, the key is ensuring your income exceeds your expenses. However, during tough times, this can become more challenging. Here are a few simple, fundamental concepts to help you stay on track: 1. Avoid Overextending Yourself Never stretch yourself beyond what you can afford. Assess your financial capability meticulously. While a mortgage broker may suggest you can borrow a certain amount based on your income and expenses, it is crucial to ask yourself: Do you need to buy a property at that price point? Can you comfortably manage the monthly mortgage payments? Is investing in this property the best decision for your financial situation? How would you comfortably afford the mortgage, if you lost part or all of your income? While mortgage brokers can help you find the best mortgage deals, no mortgage brokers or financial experts know you better than you do. Always remember, mortgage brokers often earn commissions based on the amount you borrow, so some unscrupulous brokers will encourage you to take out higher loans. While most mortgage brokers and lenders abide by the strict Responsible Lending code of conduct, it is important to note that opportunists exists in any profession. And the easier it is to get into a profession, the more opportunist you will find in the industry. You need to be cautious and prioritise your financial stability over borrowing more. 2. Be Careful of Free Property Investment Seminars by Spruikers We get it—free property investment advice sounds like a steal. But let’s be honest: we know there’s no such thing as a free lunch. Nothing is free. We’ve sat in "free" investment seminars, and while smiling “property gurus” are presenting data hand-picked to steer your thoughts into the properties they are marketing, they are handing out developer-sponsored coffee. Their job is to push you toward developer-funded properties that line their pockets—not yours. They’re banking on your naiveness, excitement (and your budget) to drive their commissions. Unfortunately, it is often the opportunistic, budget-constrained investors who attends these seminars. They are the ones who thought they were picking up free goodies, not realising they are the ones who usually ended up being hooked. It is understandable that they might feel that real property investment advisors such as genuine buyers advocates are expensive services they do not need to invest in. However, what they did not realise is, while Buyers Advocates charge a fee, the fees are usually less than 2% of the property price. The real issue is, these free presentations contains lots of mis-information, designed to steer the audience to the properties they are marketing. These are the very property investors and buyers who cannot afford a loss who get caught in these traps. And this brings us to the next point. 3. Avoid Negatively Geared Properties Negatively geared properties are investments where your expenses outweigh your rental income, with the hope of future capital gains. Essentially, you’re losing money upfront, expecting to gain it later. This strategy is usually suited for wealthy investors who can afford to absorb those losses without affecting their lifestyle. Unfortunately, many novice investors are lured by the promise of future growth, often marketed by property spruikers and investment strategists. But negative gearing can be risky, especially during economic downturns or rising interest rates. Before considering a negatively geared property, ask yourself: Can you afford the losses if things don’t go as planned? How will rising interest rates impact your investment? The reality is that negative gearing is losing money today in hopes of saving on taxes. It's like losing a dollar to save 30 cents —not a smart idea for most. And if you find yourself investing with high interest rates without fully understanding the risks, you’re walking a dangerous line. In the Australian investment environment, if you like the idea of losing $1 to save 30 cents, there are plenty of investors willing to give you 30 cents for every dollar you send their way—of course, in jest! But that’s the point: nobody should desire this kind of deal . What should you do, if you think your property may be Repossessed? So, what happens if you find yourself struggling to make that mortgage repayment? If you are concerned that your property may be repossessed due to financial strain, it's essential to take proactive steps to mitigate the situation:: Review your expenses:   Conduct a thorough review of your expenses to identify areas where you can cut back. Look for non-essential expenses that can be eliminated or reduced to free up more funds for mortgage repayments.. Increase your income:   Consider ways to boost your income, such as taking on a second job or pursuing opportunities for higher-paying employment. Generating additional income can help alleviate financial pressure and improve your ability to meet mortgage obligations Assess Troublesome Properties:   Evaluate which properties in your portfolio are causing the most financial strain. Identifying these properties allows you to prioritize them for action, whether through restructuring loans, refinancing, or selling the property. Explore Refinancing : It might be too late, as the banks would have tightened their lending, so, you might not be able to refinance. But it is worth a try. If you're using a mortgage broker though, be wary what you info you share. Mortgage brokers usually have connections asking for cheap properties. They will be low balling your properties.. Talk to the Bank : This might be counter-intuitive, but remember, the banks are not in the real estate business. They want their money and are keen to work with you to try to recover what they are owed. Explain your situation to them, and they might be able to work out a payment option with you. They may allow you to delay your payments, or restructure your mortgage to lower your monthly payments. Explore Property Sales:  If you're struggling to maintain multiple properties, consider selling the properties that are causing the most financial stress. OR selling the properties with the most equities. Liquidating assets can help alleviate financial burdens and prevent further escalation of debt. There is no single best solution, but if you would like to have a chat with us, we can help you assess your best option. Seek Professional Assistance: Reach out to professionals such as buyers advocates  and property investment advisors like us , or financial advisors who can provide guidance and support during this challenging time. Consult with financial advisors or property experts to explore viable solutions and navigate the repossession process effectively. Be Proactive : This may be a stressful moment for you, but it is not the time to be emotional. Don't delay in seeking assistance if you anticipate repossession. Acting promptly allows you to explore options and take necessary steps to protect your financial interests before the situation escalates further. You need to avoid getting yourself into a repossession situation. What can You Do, if Your Property is being Repossessed and Awaiting Sale? If your property has been repossessed by the bank and is awaiting sale, the best thing you can do is to keep constant communication with the bank. Be proactive and sincere with resolving your debt. Remember, the bank / lender had trusted you, but you broke the trust when you failed to keep your repayment up to date. This is your last chance to earn that trust back, as the sale is not the end of your debt problem. There are much more awaiting you. If your bank/lender still allows you to sell the property yourself, do it as soon as possible. The longer you drag, the more default interests you'll be paying, plus legal fees. After the Sale, Can you Request for Early Release of Deposit? You would hopefully do not have any other debts awaiting to be cleared. But if you do, you might be tempted to ask the buyer permission for early release of deposit, to start paying down your debt. In Victoria, the Section 27 form allows you to do just that. This form needs inputs / feedback from your mortgagee / lender. Some of the information which will be disclosed includes: Your mortgage / loan is in default Your outstanding debt The interest rates and any default interest rates that applied to you, etc. Can You Request Early Release of the Deposit? Section 27 in Victoria Short answer: Yes and No. In Victoria, a seller can ask for early release of the deposit under Section 27 of the Sale of Land Act 1962 (Vic), but it’s not automatic. How the early release of deposit works in Melbourne / Victoria The deposit is held in trust (usually by the sales agent or conveyancer). The vendor serves a s27 statement disclosing any mortgage(s), payout figures, caveats and confirming there’s no default . The lender’s letter is factual only (amount owing / default status); lenders don’t “approve” releases. The buyer may consent, or if 28 days pass after service of the s27 statement and the buyer has no reasonable objection, the stakeholder may release the deposit. When buyers can (and should) object The contract is still conditional (e.g., finance, building/pest, due diligence). The mortgage is in default or there’s insufficient equity to discharge it at settlement. There is a caveat or other title issue that could jeopardise settlement. Information in the s27 statement is incomplete or inconsistent . Any mortgagee / lender has raised their concerns. Why Buyer Solicitors Often Reject the Early Release Request If the deposit is released and settlement fails, the buyer loses the protection of trust funds and may have to chase the vendor personally to recover the money. That’s why, when there’s any hint of default, poor credit history, unclear payout figures or active caveats, buyer lawyers refuse consent. The risk is too high and unnecessary. Bottom line: Early release is possible only when the contract is unconditional, the vendor’s mortgage is not in default, there is clear equity, and no caveats exist. When in doubt, don’t consent. Seek advice from your conveyancer / solicitor. Final Words We hope you do not find yourselves in such a situation. But if you do, talk to us. Our property advisors are happy to understand your situation and offer proactive solutions for avoiding repossession. Our expertise, network of buyers, and timely intervention can make a significant difference in preserving your financial well-being and securing a positive outcome. Our buyers advocates in Melbourne have a constant pool of buyers who are ready to buy your properties. If your property is what our buyers are looking for and bought it, you can save yourself over $30k-$100k or more in sales commission and sales expenses. It is quite a significant saving, if you are trying to maximise your property sales, but you will need to come to us before the bank initiates their debt management and repossession process. Disclaimer: Information provided here and anywhere in our website is for general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances.

With over 25 years in the real estate investment industry and corporate world, Raymondson is the founder of this independent buyer agency service in Melbourne. He personally hand-picks his team of buyer's agents and buyer advocates, to help clients navigate the property market and make informed decisions. What sets him apart from others in the industry is his unique background and expertise in data management and analytics. Starting from Scratch, as a Migrant​ As a migrant to Australia, Raymondson arrived with nothing but two suitcases and a pile of debts. After a failed property investment in his home country, he took a loan from his lender, jumped on a plane from Singapore, and landed in Melbourne to start a new life. His first job in information technology, launched his data and analytics career. With his interest and knowledge in data management and analytics, he built his own proprietary property analytics database, which he uses to analyze the Melbourne property market. Data Don't Lie. Or do they? Everyone knows data don't lie. But did you know it is the narratives around the data that lies? About 80% of the population does not know how to read data. Yes, it is a bunch of numbers, but what do they numbers mean, how do different sets of numbers co-relate? And what do they suggest? Spruikers know that. Thus, many spruikers are using "carefully selected pieces of data" to spruik their sales and marketing. Independence is GOLD. And this is why Raymondson likes being independent. He loved the freedom to tell it like it is. He has no bosses or no master franchise to tell him what to do. He has no hidden agenda, has nothing to sell, and just want to run an honest Buyers Advocacy business. ​ He discovered that the Melbourne property market is predictable when the data is overlaid with the right insights from the ground. With this knowledge, he started his property investment journey by using the data he collected over the years, to trade and flip properties. In two years, he paid off his debts and started building his property portfolio, accumulating his wealth, and eventually achieving financial freedom. ​ What's life being "Retired"? Despite his achievements, Raymondson is a low-key, low-profile person who doesn't flaunt his "retired" status. He prefers to stay under the radar and usually turns down media interviews. He does not believe in mass media, as it often goes against his principle of providing honest property buying news. Most mass media has an agenda to drive. Their purpose is to sensationalise the news. The details are often selected to excite the readers. This goes against his integrity. His value of honesty and trust. Raymondson understands what it's like to be in debt, having taken a misstep in property investing himself. He is therefore passionate about helping buyers avoid the pitfalls and that made him start this buyer advocacy agency, with the aim of helping home buyers and property investors navigate the market and avoid the troubles and stress of home and investment property buying. ​ What are the values of Concierge Buyers Advocates? At Concierge Buyers Advocates, Raymondson and his team provide an exclusive but affordable property buyer agency service built on trust , integrity, exclusivity, and helping their exclusive clients buy and own properties quickly and confidently. They do not sell, and they have no targets to meet. They're only accountable to their clients, not their shareholders or franchisors. With their expertise in data analytics, they provide honest answers and help clients outsmart the property market while avoiding inflated pricing. ​ Raymondson is a straight-talking person who tells it like it is. Sometimes, this means going against mass consensus, including his views on the Melbourne property market. Clients who love honest answers and hate fluff appreciate his work. He's been right with forecasting the rise in property prices after the 2019 Federal Elections[ here ], and he's been right with predicting that property prices are not going to crash due to the COVID-19 pandemic [ early 2020 ] [ mid 2020 ]. He has also been right with predicting that economies have to open up eventually, with or without COVID-19. Talk about COVID-normal and living with COVID; you can only get honest feedback from him. ​ Raymondson is a man with a vision and passion to help others achieve financial freedom through smart property investments. His unique background and expertise in data management and analytics allow him to provide honest answers and help clients navigate the complex property market with ease. If you're looking for an affordable and exclusive property buyer agency service that's built on trust and integrity, look no further than Concierge Buyers Advocates.