When it comes to property, many of us feel like we’re meant to just know how it all works. But the truth is, a lot of people—from all walks of life—don’t get taught the basics.
If you’re in a similar boat, this guide is here to walk you through the absolute basics. From understanding property types to the different ways homes are bought and sold, here’s what you need to know.
When searching online for a property, you’re often asked to filter by type: house, townhouse, apartment, unit, etc. But here’s the catch—these categories aren’t always used consistently. What one person calls an “apartment,” another might call a “unit.”
Here’s a simplified breakdown:
There are two main ways homes are sold in Australia: auction and private sale.
Auctions
An auction is a public sale where buyers bid against each other. The highest bid above the reserve price wins. The reserve price is the minimum amount the seller is willing to accept, and it can change—even during the auction.
If bidding doesn’t reach the reserve, the property may pass in, giving the highest bidder the chance to negotiate directly with the seller. It’s important to know that when you buy at auction, the sale is unconditional. That means no cooling-off period and no backing out after signing the contract.
In a private sale, buyers submit offers and negotiate terms directly with the agent. Unlike auctions, there are no standardised rules, and the process can vary widely—even between agents in the same agency.
There are also variations like:
Understanding the agent’s process upfront is crucial, as there are no uniform rules.
In Victoria, private sales come with a three business day cooling-off period, starting from when the buyer signs the contract. During this time, the buyer can withdraw from the purchase, but will need to pay a penalty (0.2% of the purchase price).
However, cooling-off doesn’t apply:
This means buyers must do all their due diligence—inspections, legal checks, etc.—before attending an auction.
Most buyers begin their search online using real estate platforms. But not every property is listed there. Off-market properties are homes that are for sale but not advertised publicly. They’re often sold through direct agent connections or buyer’s advocates.
There are also pre-market properties—homes that are about to be listed but aren’t public yet. Being proactive and talking to agents can help you access these before the wider market does.
Why might a seller go off-market?
These properties can be great opportunities but may also come with less committed sellers—so stay aware.
Buying a property is one of the biggest decisions you’ll make—and it’s completely okay to start from scratch. With the right guidance and a bit of self-education, the process becomes far less intimidating.
If you’re just starting your property journey, make it a goal to understand the basics before diving into the deep end.
Know your property types, the sale methods, and the language agents use. From there, you’ll be ready to take the next step with confidence.
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@amy_lunardi_property
Expert buyer’s advocate, founder of Amy Lunardi Property and creator of of The First Home Guidebook - an educational podcast series and online course that empowers first-home buyers with all the necessary tools and knowledge needed to buy their first home.
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