Why Consider Engaging a Buyer’s Agent?
Have you noticed how most things in life seem to be getting increasingly complex?
We were told technology would make life easier and free up our time. But it seems the more tech-savvy we’ve become, the more complicated things have become.
Take a property sale for example. In the past a real estate agent fielded phone calls and arranged inspections before a willing buyer came along and negotiated a purchase. Now entire ‘sales teams’ in most agencies with a whole crew of marketing and administrative staff lend support to the agent and in turn, give vendors a distinct advantage when it comes to negotiations.
Enter the Buyer’s Agent
The tables have turned as Australia becomes more professional with regard to the business of real estate transactions.
For a long time in the USA both participants in a property negotiation have had third party representation to speak on their mutual behalves. Buyer’s agents are an accepted part of the American property landscape.
Since late last century using a Buyer’s Agent or Advocate has caught on quickly in Australia.
Given that today’s increasingly sophisticated sales campaigns are geared to generate the highest possible sales price for the vendor (and a bigger commission to the selling agent), it’s little wonder that more buyers feel the need to have someone on their side to give them a fighting chance.
Around inner city markets in particular, owner-occupiers and property investors are calling on the various services offered through Buyer’s Agents. Not surprising when you consider many purchases in highly sought-after inner urban areas involve million dollar plus price tags. But even if you’re buying a $600,000 flat it’s worth setting yourself up well for the future.
Let’s face it, most people wouldn’t even consider throwing money at the share market without first seeking professional guidance from an expert.
So why would you think about handing over $500,000 or more without first consulting someone who knows the local property market just as intimately as a good stockbroker knows theirs?
Buyer’s Agents add an impressive dynamic to the Australian property sector
At the end of last century, time poor baby-boomers with lots of spare equity and/or cash, wanted to build a retirement portfolio and were the primary demographic using Buyer’s Agents services at that time. Then there were ex-pats, returning from long working holidays abroad or deciding to invest in a piece of home whilst still overseas.
Due to obvious geographical constraints, the local representation of a Buyer’s Agents is still essential for absentee Aussies.
Today our clientele is increasingly diverse, with the popularity of Buyer’s Agents growing in line with word of mouth, shows like the Block and streamed television shows that highlight how much time and money Buyer’s Agents can save purchasers.
First timers with a tight budget and dreaming of an inner/middle city abode, people looking to relocate interstate and downsizers are seeking the expertise of a Buyer’s Agents
The majority of today’s serious property investors won’t do a deal without their own representation.
For investors, the advantages of using a Buyer’s Agent are many, including:
- Save valuable time by letting us research the market
- Identify the best possible property aligned with your specific investment objectives, timeline and strategy
- Negotiate the appropriate purchase price (in line with current market values) to ensure you don’t overcapitalize
- Access to our network 500+ real estate network to introduce you to Off Market properties
- Provide you the facts to make an informed decision, work exclusively for you thereby levelling the playing field
- Stop you making the common mistakes many investors make
What about the cost?
When you consider countless weekends spent searching for the right property, dealing with artful and sometimes pushy sales agents, only to turn up at auction after auction and the heartbreak of losing out to the competition, a buyer’s agent fee suddenly seems pretty reasonable.
Especially when you consider that a good Buyer’s Agents should be able to save you purchasing the wrong property, overpaying and hence the ability to upgrade to a larger home when you wish or perhaps leverage into another property investment and then another.
Our initial meeting is free of charge to see if we are a good fit and can both work together. Prior to the commencement of our service, we discuss and agree the appropriate fee upfront with you depending on your specific needs and services required. If you decide to proceed an affordable initial engagement fee is payable to commence finding your property. Upon your successful purchase the balance of the professional fee is payable.
Here are some questions you should ask any Buyer’s Agents you’re considering working with:
Not all Buyer’s Agents are created equal. So here is what you need to look for when interviewing and qualifying a potential candidate to assist with your next property purchase:
- What are your qualifications?
Don’t be afraid to ask about their credentials upfront. Buyer’s Agents in Melbourne MUST hold a full Real Estate Agent’s Licence and be registered with the Real Estate Institute of Victoria in order to be able to legally act on behalf of a client in a property transaction. Buyers should ask to see the Buyer’s Agent’s real estate license and check the expiry. You can also run a search for licensed and registered real estate agents on the relevant Victorian Government website: https://registers.consumer.vic.gov.au/easearch
- How knowledgeable/experienced are you at buying within the location/s we’re looking at?
When you’re selecting a Buyer’s Agents be sure they have a good working knowledge of the locations you are interested in purchasing in. If you are in Melbourne the Buyer’s Agents should live in Melbourne and have a thorough understanding of the wider Melbourne Property Market. Nothing beats the knowledge and experience of a Melbourne resident.
- How many years have you been in business as a buyer’s agent/real estate professional?
A Buyer’s Agents should have a minimum of ten (10) years’ experience of the buying and selling process in the wider Melbourne real estate across all price points. A Buyer’s Agent who is only familiar with your local area will not be the best choice for buyers. In particular he/she should be a Licenced Agent for at least 10 years.
- What about your recent results?
Purchasers should ask Buyer’s Agents to produce examples of recent results achieved for clients they have represented. These results may include how they saved their client money, sourced the best property for the client or detailed sales analysis of past and future capital growth. If the Buyer’s Agent can’t demonstrate real results, it may be that this Buyer’s Agent won’t be able to provide value for their professional fee.
- Ask why you should use them instead of a competitor
This is a great question for buyers to ask. A good Buyer’s Agent will be able to explain to you their unique value and how they differ from others in the market. Ask this question in person or over the phone to gauge his or her tone of voice and authenticity. You will get a sense of if they are in it for the clients and not the fee. An emailed reply can be manufactured to suit If they can’t be bothered phoning you at this stage what will they be like moving forward if you engage their services?
- How do you get paid?
A Buyer’s Agent who receives financial incentives or kickbacks from third parties MUST disclose these to you upfront before you sign with him / her. Buyers need to ask this question because it can determine how independent a Buyer’s Agent really is. If he/she is receiving an incentive or a kick-back from another party (for example a builder, developer or another real estate agent), they may not be working in your best interest. This is a huge red flag for purchasers who are looking for unbiased, independent property advice as to which property is best for their individual situation.
The bottom line…
There is only so much you can learn from the financial media, books and seminars.
While you can gain knowledge from the Internet, you can’t gain experience, networking or perspective. That takes years to acquire and comes at a cost.
It’s just too hard for beginners and even for more experienced investors to gain perspective into what’s happening in today’s fast-moving and ever changing markets.
By using the experience of a professional property adviser — a property strategist — one who is independent and unbiased you are giving yourself the best advantage in your property purchase.
Sound professional advice is never expensive in fact you could pay a huge “learning fee” to the market by buying the wrong property, in the wrong location, at the wrong price.
What can you do to stay ahead of the market?
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
Correct property selection has never been more important, as only selected sectors of the market are likely to outperform. Why not get the independent team of property strategists and buyers’ agents at Your Australian Property to help level the playing field for you?
We help our clients grow their wealth through a range of services including:
- Buyer’s Agency – As Australia’s most trusted Buyer’s Agent we’ve been involved in creating wealth for our clients and we can do the same for you. Our team in Melbourne bring you years of experience and knowledge – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Auction Bidding – we use innovative strategies to take the stress out of Auction Bidding to secure the Winning Bid at Auction. Click here to learn how we can help you
- Off-Market Properties – through our 500+ Real Estate Agency Network we give you Access to Off-Market and Pre-Market Properties other Buyers don’t get to see. Click here to learn how we can help you
Your Australian Property lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.