Buyers agent due diligence checklist: what we check before we buy

Due diligence is the research you do before you commit to a property. As a licensed buyers agency, we check six things on every property before we recommend it: location and demand, the building, title and planning, the contract, the numbers and rental compliance. Here is the full checklist.

What is property due diligence?

Due diligence is the research you do before you commit to a property: the area, the building, the title and planning, the contract, and the numbers. It is how you find problems while you can still walk away or renegotiate.

As a licensed buyers agency, we run every property through the checklist below before we recommend it to a client. Use it for your own purchase.

1. Location and demand

• Median rents and how they have moved, from official reports such as the Victorian Rental Report or the NSW Rent and Sales Report.
• Population and household make up, from ABS Census QuickStats and regional population data.
• Vacancy rates and days on market. These come from private data providers, so note the source and date.
• Planned infrastructure, and planning permits nearby that could change noise, traffic or the street.
• The price ceiling: what the best homes in the area sell for, and how much room there is between your price and that ceiling.

2. The building

• An independent building inspection to AS 4349.1 and a timber pest inspection to AS 4349.3. Both are mostly visual, so hidden defects can be missed.
• Asbestos if the home was built or renovated before 1990. A standard building inspection usually does not check for it.
• Permits for any renovation, extension or retaining wall. Illegal works can become your problem once you sign.
• Pool or spa barrier compliance, where there is one.
• Repair costs, and the cost of any work that would add value.

3. Title and planning

• A title search: owners, mortgages, caveats, covenants and easements.
• Boundaries: do the fences and buildings match the title?
• Zoning and overlays, such as heritage, flood and bushfire. Use VicPlan in Victoria or the NSW Planning Portal Spatial Viewer.
• Flood and bushfire risk, which also affects insurance premiums.

4. Contract and vendor disclosure

Have your own lawyer or conveyancer review the contract before you sign.

5. The numbers

• Stamp duty and buying costs. Work out stamp duty.
• A rental appraisal, then gross and net yield. Work out rental yield.
• Holding costs: rates, water, insurance, management, strata, land tax, maintenance and a vacancy allowance.
• Weekly cashflow after costs. Check your cashflow.
• A depreciation schedule from a quantity surveyor.
• Tax: from 1 July 2027 negative gearing on residential property is limited to new builds. Properties already held at 7:30pm AEST on 12 May 2026 are exempt. Ask a registered tax agent how it applies to you.

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6. Rental compliance

• The property meets rental minimum standards. In Victoria it must comply when it is advertised for rent.
• Gas and electrical safety checks. In Victoria these are due every two years for all rentals from 13 October 2026.
• Working smoke alarms, checked every year.
• The cost of any upgrades needed before a tenant moves in.

Five more checks investors often miss

• New supply nearby. Look for planned and approved developments close by. A wave of similar new homes can hold back rents and values for years.
• Comparable sales, not asking prices. Compare the price with recent sales of similar homes nearby, not with what other sellers are asking.
• A stress test. Work out the holding cost if the property sits vacant for a few weeks, or if insurance, rates or maintenance rise.
• Property management. Line up a manager before settlement and check their fees, vacancy record and how they screen tenants.
• Resale appeal. Ask who would buy it from you later, and whether the land, layout and street will still suit them.

What happens after the checklist?

If a property passes, we negotiate the price and terms using what we found. If it fails a check that cannot be fixed at the right price, we walk away. Most properties we look at do not make it to a recommendation, and that is the point of the process.

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General information only. It does not take your objectives, financial situation or needs into account and is not financial, tax, credit or legal advice. Citadel Agency is a licensed buyers agency (licence 092247L) and does not hold an Australian Financial Services Licence.