4 steps to help you avoid overpaying for your first home

With property prices rising across Australia, including right here in Wollongong and the Illawarra, many first-home buyers are navigating a competitive market. In October, national dwelling values rose 1.1%, marking the strongest monthly gain since mid 2023.

Demand has surged following the expansion of the Australian Government’s 5% Deposit Scheme, which allows eligible first-home buyers to purchase with a 5% deposit and no LMI. It’s a powerful opportunity, but it also highlights the importance of buying the right home, at the right price, in the right location.

Here are four steps to help you approach the market with confidence and avoid paying more than you should.

1) Do your research

A smart first home purchase starts with understanding the area you’re buying in. Look into:

• Median property prices

• Recent sales

• Long-term capital growth

• Local amenities

• Planned developments

• Schools, transport and employment hubs

• Population and demographic shifts

These insights will give you a realistic sense of what properties are worth and how the suburb may perform over time.

✨ Tip: Ask us for a free suburb report for your preferred Wollongong or Illawarra locations.

2) Get familiar with the market

It’s rare to buy the first property you inspect. Most buyers need time to:

• Compare similar homes

• Understand price differences

• See how quickly properties are selling

• Learn the rhythm of local auctions

• Identify what truly matters to them

Spend a few weekends attending open homes and auctions across Wollongong so you can recognise good value and spot a red flag when you see one.

Once you find a home you like, look for negotiation triggers such as:

• Street noise

• Limited parking

• Nearby development sites

• Older neighbouring homes

• Less-desirable street appeal

Small factors like these can help you negotiate a better price.

3) Have your finance ready to go

One of the biggest advantages you can give yourself is home loan pre-approval.

As your local mortgage broker in Wollongong, we can:

• Explain your borrowing capacity

• Compare 70+ lenders

• Identify options to avoid LMI (if applicable)

• Organise your pre-approval quickly

• Strengthen your negotiating position

Pre-approval reduces the risk of overspending and shows sellers you’re serious — especially important in a tight-stock market like the Illawarra.

4) Walk away if necessary

Staged homes, clever styling and emotional marketing can make it easy to fall in love with a property. But if the vendor won’t meet the market, or the price doesn’t reflect fair value, you need to be prepared to walk.

Another opportunity will always come along, and your long-term financial wellbeing is more important than any single property.

Ready to get started?

Buying your first home can be exciting, but the key to avoiding overpaying is simple: research well, know the market, and organise your finance early.

If you’d like support with pre-approval or want to understand your borrowing capacity, we’re here to help. Whether you’re hoping to buy before the end of the year or planning for next year, we can guide you every step of the way.

📞 Get in touch today to chat about your first home goals.