A red flag is not a reason to walk away on its own. It is a sign you need more evidence before you decide, and it usually points to one specific person to ask: a building and pest inspector, a solicitor or conveyancer, a strata manager, or the selling agent. This guide groups the common warning signs by where they show up, so you know what each one might mean, what to ask for, and who to ask.
The listing and the sale
Some warning signs show up before you arrange an inspection, in how the property is sold.
- A price guide well below recent sales of similar properties in the area: may mean the guide is set to draw more interest ahead of an auction, or that the vendor's expectation has not caught up with recent sales. Ask the agent in writing which recent sales of similar properties they used, and check recent sold prices yourself before treating the guide as a reliable price.
- A long time on market, or a relisted property: can mean the price has been too high, or something came up at a previous buyer's inspection or finance stage. Ask the agent how long it has actually been listed, including under a previous agency, and why any earlier contract did not proceed.
- Vague or missing details, such as land size, build year or floor plan: ask the agent to confirm the figures, then check them against the contract of sale and the title, which state the facts rather than the marketing.
- Pressure to sign quickly, an unusually short deadline, or being told another buyer is about to sign: is a sales tactic, not a reason to skip your checks. Ask for time to get a building and pest inspection and legal review done. Cooling-off periods vary by state and do not apply at auction, so confirm your own position before you commit (see ASIC's Moneysmart guide to buying a house).
The building and the site
A building and pest inspection turns these signs into an answer. The questions below are for the inspector to assess, not to diagnose yourself at an open home.
- Moisture or damp, such as a musty smell, staining or bubbling paint: ask whether it is active or past, where it is coming from, and whether it affects timber or structure.
- Cracking in walls, cornices or brickwork: ask whether it looks cosmetic or structural, and whether the footings need a closer look.
- Fresh paint, new carpet in a single room, or other recent cosmetic work: ask what is underneath it, and ask for any renovation history or receipts.
- Work that looks unapproved, such as an added room, deck, pergola or pool: ask the inspector to flag anything unpermitted, and ask for the relevant approvals or check with the local council.
- Pests, particularly termites: ask for a full timber pest inspection, including roof void and sub-floor access wherever it can be reached.
- Drainage: ask about the site's slope, stormwater, and any signs of water pooling near the building.
Ask for a written report covering these areas, not a verbal summary at the property. The building inspection report guide explains what to look for once you have it.
The contract and the title
These are questions for your solicitor or conveyancer, not something to work out from the contract yourself.
- An easement or covenant on the title: may mean another party has a legal right over part of the land, such as for a driveway or services, or that there are restrictions on what you can build. Ask what it means for this property.
- Special conditions attached to the contract, beyond the standard terms: ask why they are there and what they change.
- A short settlement period: ask whether it leaves enough time for your finance approval and any searches still to run.
- Missing disclosure documents, such as the vendor's statement or the disclosure documents required in your state: ask what should be attached and whether everything is there before you sign.
A solicitor or conveyancer reviewing the contract before you sign, not after, is what makes these questions answerable in time.
Strata and community title
Strata (called an owners corporation or body corporate in some states) is not only a unit issue. Some houses are also part of a strata or community title scheme, so check the title rather than assuming from the property type.
- A special levy already raised, or flagged as likely: means an extra cost on top of ordinary running costs. Ask what it is for and how it was worked out.
- A capital works fund balance that looks low against the building's age and any upcoming works: ask for the balance and the latest forecast.
- Disputes between owners, with the manager, or with a builder: ask for recent meeting minutes.
- Defects, especially in a newer building: ask whether a defects inspection has been done and what it found.
- A history of insurance claims: ask for the certificate of currency and the claims history.
Request the strata records, meaning minutes, financial statements, by-laws and insurance, through the agent or strata manager. How to read a strata report explains what to look for once you have them.
The location
Some checks belong on an official government source rather than the listing.
- Zoning and any proposed rezoning nearby: ask what the current zoning allows, then check your state's planning portal for zoning and any nearby planning proposals. Each state publishes its own tool: in New South Wales, for example, the Planning Portal lets you search an address for its zoning and controls.
- Flood and bushfire overlays: check these at the address with your state's planning portal and the local council rather than assuming from the listing, because where this information is held, and how it is shown, differs between states and councils.
- Noise: does not show up well on an official portal. Visit at a different time of day, check proximity to a train line, flight path or main road, and ask the agent about any scheduled works or developments nearby.
The numbers
The numbers on a listing are a starting point, not evidence.
- Rent that cannot be evidenced: ask for a current lease, a written rental appraisal from a property manager, or recent comparable lettings, rather than relying on the agent's estimate alone.
- Costs missing from the vendor's figures: check what the vendor's outgoings list actually includes, and what it leaves out.
Example: a two-bedroom unit is listed at $650,000 with an advertised rent of $600 a week. Recent lettings of similar units in the same building show three renting between $480 and $520 a week. Working from the higher end, $520: $600 minus $520 is an $80 a week gap, and $80 multiplied by 52 weeks is $4,160 a year, between the advertised figure and what similar units are achieving. That gap is a reason to ask for a current lease or a written rental appraisal before using $600 in your own numbers, not a reason to assume the advertised figure is wrong.
The same unit's outgoings list from the vendor shows council rates and water, but nothing for a strata levy. Because the unit is in a strata scheme, the levy is a cost the list is missing, not a cost that does not exist. Ask for it, along with the certificate of currency and the capital works fund balance, before treating the vendor's figures as complete.
Once you have evidence for the flags above, the property investment due diligence checklist sets out the fuller list of checks.
Where this fits in Virtual Buyers Agent
None of this is something Virtual Buyers Agent does for you. It does not inspect the property, read the contract, or tell you whether a warning sign is serious.
What it does is keep track of the questions once you have them. Each property's Documents area is a checklist you tick yourself as you gather evidence: the building and pest report, the contract, the strata records, and anything else specific to that property. Anything you have not answered stays open on your list. The Location area shows the map, nearby places and Census figures for the area; checking zoning, flood and bushfire information stays something you do on the relevant official source, not something it assesses.
A red flag is a question to investigate, not a verdict.
Reviewed 28 September 2026.