Ahhh...$500 stamp duty doesn't sound right at all.

You wont need a solicitor, you'll need a settlement agent. They handle the transfer of money from the bank to the seller and the transfer of title into your name.

You'll need a couple of grand for settlement & inspection costs. And insurance for the house as well. We needed that before settlement would take place.
I'm not sure what state you are in, but in Queensland, the stamp duty is cheaper than most of the other states. Plus its better to have a solicitor than just a settlement agent, as the settlement agents AREN'T solicitors, and if you run into trouble, its more expensive to get someone to help you out - I'd rather the protection of a solicitor than going in blindly - ESPECIALLY - if you've never purchased a house before.

ETA - PB - Queensland is one of the only states I think where you must use a solicitor for a conveyance. Conveyancers can work themselves in other states, but all are directed in Queensland by a solicitor. Conveyancers cannot practise in Queensland on their own without a solicitor (believe me, I studied to be a conveyancer in Victoria, then went to queensland and it wasn't recognised cos there isn't a course up there - everyone is a solicitor who then practices in property law - ie conveyancing)