The Due Diligence Process When Buying Property

Protecting Your Investment Before You Purchase

Buying a property is often the largest financial commitment most Australians will make. Conducting thorough due diligence before signing ensures the asset is sound — both structurally and financially.

At JamesKellie, we focus on four key due diligence steps before any purchase:

1. Building & Pest Inspection

A qualified inspector assesses the structure, condition, and safety of a property. The report identifies both major and minor defects, giving you a clear view of what repairs may be required.

Typical cost: ~$400 + GST.
If major issues are found, such as structural damage or pest infestations, it may be best to walk away. Always check if the selling agent already has a recent report to save on costs.

2. Strata Report (for Units or Townhouses)

For strata-titled properties, a strata report outlines how the building is managed financially and operationally. It details fees, maintenance plans, disputes, and the balance of the sinking fund.

Typical cost: ~$200 + GST.
Low balances or repeated repair discussions in meeting minutes can signal future levies or rising fees.

3. Independent Valuation

An independent valuer provides an objective market assessment of the property’s value — often more accurate than relying solely on emotion or online estimates.

A typical report includes a valuation range (e.g. $1.0m–$1.1m), allowing you to confidently negotiate knowing where fair value sits. Overpaying can cause loan issues later if the bank’s valuation comes in lower.

Typical cost: ~$600 + GST.

4. Contract Review

Before signing, your solicitor or conveyancer should review the contract to identify any clauses or terms that could impact your position. Minor amendments are common and can protect you from unexpected risks.

A small upfront investment in legal review can save substantial costs — and stress — later.