Here’s a step-by-step guide on how to research a property before buying so you can improve the long-term financial outcomes of your purchase:

1.   Define your requirements

Start by outlining what you're looking for. Consider your budget, preferred location, and the type of home that suits your lifestyle. Whether you’re after a house, an apartment, or a townhouse, knowing your desired type will narrow your search.

Think about elements such as:

• The number of bedrooms and bathrooms
• Outdoor space like a garden or balcony
• Proximity to transport links and amenities like schools, shops and parks
• Your next steps, e.g. are you planning to start a family or will your children need more space in the near future?

Have a wishlist but be realistic about what you can afford within your budget. Know what you will compromise on, for example you may be willing to move to a different suburb so you can have a third bedroom, or you may be happy with a smaller place if it is close to the beach.

2.   Use online resources

Browse listings, view photos and take virtual tours of properties. Websites like realestate.com.au or Domain offer filters that allow you to refine your search based on price, size and location.

Look for the following details:

• Photos and floor plans
• Virtual tours
• Nearby listings (to compare prices and ensure the property you’re considering offers value for money).

Don’t forget you can also research the amount homes have sold for in your area. This can give you much clearer expectations than looking at the asking price (which often isn’t included in a listing).

3.   Get to know your local real estate agent

While online research is helpful, local real estate agents have in-depth knowledge of the market and can offer valuable insights. They can help you access off-market properties or those that haven’t been listed yet. By establishing a good relationship with a few local agents, you’ll also get the inside scoop on properties that match your requirements.

Estate agents can also provide information on:

• Recent sales and property trends in the area
• Upcoming developments that could affect property values
• What’s coming up for sale
• Whether your budget and wishlist are realistic

Don’t be afraid to have a conversation and talk about what you’re looking for. You’ll get some valuable insights.

If you’re really unsure about how to research a property before buying, a buyer’s agent can also help. This expert will charge a fee to fast-track your search, expose you to off-market opportunities and negotiate or bid at auction on your behalf. It can make a big difference to have a personal representative in your corner.

4.   Attend open houses, inspections and auctions

Even before you’re ready to buy, head to some open home events. This will help you understand what’s available around your budget and what the local competition is like.

While visiting, if you’re serious about making an offer pay attention to:

• The general condition of the property—look for signs of damage or required maintenance.
• The layout and whether it meets your living needs.
• The neighbourhood and its surroundings, to ensure it aligns with your lifestyle.

Taking photos and notes during these visits can help you remember key details and compare properties more easily later.

5.   Research the neighbourhood

When you’re figuring out how to research a property before buying, think about the area it is in as well.

Research the suburb to ensure it suits your lifestyle and has the atmosphere you’re looking for. If you don’t plan to live in the property yourself, think about your ideal tenant and whether they would want to live there.

Consider factors such as:

• Transport links, including public transport availability and road access
• Schools, especially if you have children or are planning to
• Shops, cafes, and other local services
• Crime rates in the area

A website like Microburbs can provide information about demographics, etc.

It’s also worth investigating any future developments or changes planned for the area that could impact your property’s value, such as new infrastructure or commercial projects.

6.   Consider the investment potential

Your property is an investment, whether you plan to live in it or not, and the general expectation is that it will rise in value.

• If you’re buying a property as an investment, it’s vital to assess the rental potential and the likelihood of capital growth. Look into current rental demand in the area and compare rental prices to gauge the return on investment (ROI).
• If you’re buying the place to live in, think about how you can improve it over time and whether there are any plans for the area that may impact its value.

Also, consider:

• The area’s growth potential—are property prices tipped to rise and why?
• Local economy and job opportunities, which influence demand for rental properties.

7.   Conduct due diligence

This step is very important and you will need professional help.

The breakdown includes:

• Property inspections/reports, which provide a detailed history of the property, including any renovations or issues.
• Pest and safety inspections: A white ant issue or an illegal pool fence can add to your post-purchase costs.
• Title searches, to confirm the seller has the legal right to sell and that there are no legal complications, such as easements or disputes.
• Strata reports (for units or flats), to check for any pending maintenance issues or financial liabilities.
• The exchange contract, which outlines the details of the sale

A property inspector can help you uncover any hidden issues with the home such as structural damage or rising damp. They may also provide a service to look for pest and safety issues. If you are planning to upgrade the home, ask a builder to come and give their assessment as well.

In terms of title searches, strata reports and the all-important exchange contract, you need a professional conveyancer. This professional will review these documents, liaise with your real estate agent and mortgage broker, and guide you through the legal aspects of the purchase so the terms of the exchange are in your favour.