You’ve made the winning bid or offer! What happens now?

You did it! Whether you bid the winning bid on auction day or you’ve made an offer the seller couldn’t refuse, you’re one huge step closer to the house of your dreams. But it’s not time to pop the bubbles just yet. Here’s what happens next, from the moment your offer is accepted right through to settlement.

Straight after the win

Congrats, you! But heads up: in a private treaty, there’s a risk of what some people call ‘gazumping’, which is when a higher offer comes in after yours has been accepted and the agent is obligated to pass it on to the seller. So be prepared to increase your offer if you need to – or walk away if the higher price is out of your budget. (Note: You can’t be gazumped once both parties have signed and exchanged the contract for sale if this is part of the process of sale in that state.) If you’re at auction, be ready to sign a contract and pay a deposit (around 10%) up front. (Remember, there’s usually no cooling-off period at auction, find out more about that in a sec.)

Committing to the contract of sale

This is when things get official. You’re almost ready to sign (after you do some double-checking – see the next step). After all, no sale is a done deal until you’ve signed and exchanged contracts with the seller and paid the deposit (if contract exchange is part of the process in the state you are purchasing in). But first, consider getting those contracts reviewed by a conveyancer or solicitor. The pace of this step can differ between sale types: for a private treaty, you might take time negotiating changes or adding conditions to the contract. If you’re the winning bidder at an auction, you might be able to negotiate some aspects of the contract, like the deposit amount, but most likely you’re signing on the dotted line right then and there (unless you were able to negotiate some terms prior to auction, speak to your solicitor or conveyancer). Around this time, make sure to take note of any conditions on the contract that you’ll need to fulfil between now and settlement.

Looking twice at legal checks

Just that signature and we’re done? Not exactly. Now’s a good time to double-check the details of the contract before you do go ahead and sign. You’ve been through this with your conveyancer but it’s worth cross-checking things like zoning and council certificates (how the property is zoned can affect how you use it); nitty-gritty stuff like drainage diagrams or a plan of the land; and importantly, the title, which confirms who currently owns the property and whether it has any encumbrances (such as ‘easements’, like a shared driveway or access to essential infrastructure that others need to use and can’t be blocked, or other restrictions). This double-checking step is part-and-parcel with the step of reading and signing the contract.

Considering cooling-off periods

A cooling what now? In a private treaty, this is a set amount of time you have to change your mind and withdraw from the sale without big legal or financial consequences. The period starts on the day you sign the contract, and the amount of time you have varies from State to State (again if contract exchange is part of the process in the state you are purchasing in). It can be anything from no time at all, like in Tassie, to five business days in New South Wales, Queensland and the ACT. (Sellers may sometimes ask for the cooling-off period to be waived so that the contract for sale is binding immediately on its signing and exchange.) At auction, though, a cooling-off period is usually not a thing, so be warned: being the winning bidder comes with a commitment to buy then and there.

Facing up to finance approvals

You might have rocked the auction with pre-approval in your pocket or succeeded at private treaty negotiations with an offer subject to finance – now what? First up, send your lender a copy of the contract of sale to get the ball rolling. Try and have all the most recent and relevant documents at the ready, too, like your ID, details of your income, and a breakdown of your assets and liabilities (it’s likely your lender will have given you a heads-up about which documents you’ll need for this step).

Keep in mind that pre-approval and subject-to-finance are a bit different, too. For one, pre-approval means the lender has agreed to loan you the money in principle but hasn’t committed 100%. They’ll factor in a few things before your pre-approval can become full approval, such as changes to your circumstances (like a loss of employment), financial improvements you need to make (maybe paying down a little more of that credit card debt or reducing the maximum limit), a property valuation, and more. If you’ve made an offer subject to finance, this means you have time to organise the loan after you’ve made the offer. If your finance falls through, you can end the contract. (Note: some sellers may not accept your offer to buy their property if it is subject to finance.)

Investigating inspections

If you’ve made a private treaty offer that’s subject to inspections (meaning you’ll officially buy once you’re satisfied with any building, pest or surveyors’ inspections), now’s the time to get them done. If they’re all good: woo! If they come back unsatisfactory, you might be able to back out.

Celebrating settlement day

It’s been a few weeks since you signed on the dotted line (maybe four, maybe more!) but today’s THE day. Today, your solicitor or conveyancer meets with your lender and the seller’s representatives to hand over documents, transfer the funds and complete the sale to make the home officially yours. Not to go too deep, but your lender will register a mortgage against the property when they transfer the funds to the seller. And your solicitor or conveyancer will make sure that any existing mortgage on the property is discharged (removed, basically), that anyone else with rights to the property is out of the picture and that the transfer of the property is registered in your name at the land registry or titles office (these have different names in different States).

Now *deep breath* unlock the door and step inside your new home.

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