Buying a home can feel like learning a new language. From acronyms like LVR and LMI to terms like exchange, settlement and strata, there’s a lot to take in — especially if you’re a first-time buyer.
That’s why we’ve created this A–Z of Property Purchase Terms — a complete glossary to help you understand the lingo, make confident decisions and feel empowered at every step of your buying journey.
Whether you’re navigating your first apartment purchase or investing in your next family home, this guide will help you speak the same language as agents, lenders and conveyancers.
Let’s dive in.
🅰️ A – Auction
An auction is a public sale where buyers compete by placing bids. The property is sold to the highest bidder once the reserve price is met. At auction, contracts are unconditional — meaning there’s no cooling-off period.
Tip: Having a buyer’s agent bid on your behalf removes the emotion and keeps strategy front and centre.
🅱️ B – Building & Pest Inspection
A crucial pre-purchase step that checks for structural damage, safety issues, or pest infestations. Skipping this could mean costly surprises later.
🅲️ C – Cooling-Off Period
A short window (typically 5 business days in NSW) after signing a contract when you can withdraw from the purchase — though a small penalty applies.
🅳️ D – Deposit
An upfront payment, often 10% of the purchase price, made when contracts are exchanged. Some sellers accept a 5% deposit with negotiation.
🅴️ E – Exchange of Contracts
This is the legal moment you become bound to purchase the property. Both buyer and seller sign identical contracts and exchange them — often facilitated by your conveyancer or solicitor.
🅵️ F – First Home Buyer
A buyer purchasing their first property, often eligible for NSW Government grants or stamp duty concessions. Your buyer’s agent can help ensure you maximise these benefits.
🅶️ G – Gazumping
When a seller accepts another buyer’s higher offer before contracts are exchanged — even after accepting yours. It’s legal in NSW and frustratingly common in hot markets.
🅷️ H – Home Loan Pre-Approval
A lender’s conditional approval stating how much you can borrow. It’s essential before house-hunting — without it, you risk missing out when you find the right home - or trying to purchase homes that are above your limit.
🅸️ I – Interest Rate
The percentage your lender charges on your home loan balance. Even a small rate difference can have a big impact over time, so compare carefully. Your mortgage broker is your best friend here!
🅹️ J – Joint Tenancy
A form of property ownership where two or more people own the property equally. If one owner passes away, their share automatically transfers to the other owner(s).
🅺️ K – Key Settlement
The exciting day when ownership officially transfers, the seller is paid and you receive your keys. A buyer’s agent often coordinates this stage with your conveyancer to ensure everything runs smoothly.
🅻️ L – LVR (Loan-to-Value Ratio)
The percentage of the property’s value that you borrow. For example, borrowing $800,000 on a $1,000,000 property = 80% LVR. Borrowing over 80% usually triggers Lender’s Mortgage Insurance (LMI).
🅼️ M – Mortgage Broker
A professional who compares home loan options across lenders to find the right fit for you. A good broker works hand-in-hand with your buyer’s agent and conveyancer for a seamless purchase.
🅽️ N – Negotiation
The process of securing the best possible price and terms on your chosen property. This is where a buyer’s agent adds immense value — we negotiate without emotional attachment and understand selling agents’ tactics.
🅾️ O – Off-Market Property
A property that’s for sale but not publicly advertised. While off-markets can be valuable, they’re not always bargains — a buyer’s agent helps you determine true market value before making a move.
🅿️ P – Pre-Settlement Inspection
A final walk-through (often arranged by your buyer’s agent) before settlement to ensure the property’s condition hasn’t changed and that all agreed inclusions are present.
🆀 Q – Quote Price
The price guide given by the selling agent. Remember: this is not a guarantee — it’s a marketing tool. Buyer’s agents use data to determine a property’s true value.
🆁 R – Reserve Price
The minimum price the seller is willing to accept at auction. It’s usually confidential. Once bids reach or exceed the reserve, the property is officially “on the market.”
🆂 S – Stamp Duty
A state government tax on property purchases. In NSW, stamp duty on a $1.2 million property can exceed $50,000 — unless you qualify for exemptions. Always budget for this early.
🆃 T – Title Search
A document that confirms who legally owns the property and whether there are any restrictions, easements, or mortgages attached. Your conveyancer handles this during due diligence.
🆄 U – Unconditional Contract
A contract that has no remaining conditions — meaning both parties are fully committed to settlement. Auction contracts are unconditional from the start.
🆅 V – Valuation
An independent assessment of a property’s market value, often required by your lender before approving a loan. Buyer’s agents also perform market appraisals to ensure you don’t overpay.
🆆 W – Withdrawing an Offer
You can withdraw an offer at any time before exchange. However, in a competitive market like Sydney’s, withdrawing too often can damage your reputation with agents.
🆇 X – (e)Xpansion Potential
A term used to describe properties with room for future renovation or extension. Buyer’s agents identify homes with genuine value-add potential — not just marketing buzz.
🆈 Y – Yield (Rental Yield)
The annual rental income expressed as a percentage of the property’s purchase price. Investors use it to measure return on investment. Buyer’s agents assess both yield and growth potential before recommending a property.
🆉 Z – Zoning
Zoning determines how land can be used — residential, commercial, mixed-use, or otherwise. It also affects future development potential and neighbouring property types.
🧭 Why Understanding These Terms Matters
Property decisions are often made in high-pressure moments. When you understand the language, you feel calm, informed and in control — not overwhelmed or blindsided.
A buyer’s agent helps bridge that knowledge gap by translating complex processes into clear, actionable advice. We ensure that when your dream home comes along, you’re ready to act decisively — not hesitantly.
🤝 How a Buyer’s Agent Can Help You Navigate the Process
From A (Appraisal) to Z (Zoning), we manage the details so you can focus on your future.
Here’s what working with a buyer’s agent like us means:
Clarity: We explain each step in plain English — no jargon.
Confidence: We handle research, negotiation, and due diligence, so you make smart choices.
Strategy: We analyse the market to find homes that align with your goals and budget.
Representation: Remember — selling agents work for the seller. We work solely for you.
Whether you’re buying your first home, upsizing or investing, understanding the process is empowering — and having the right advocate makes it seamless.
📣 Ready to Buy Smarter?
If you’re ready to start your property journey with clarity and confidence, reach out today.
We’ll help you navigate every step — from your first enquiry to the moment you collect the keys.