Curious About What Buyers Agents Do? Here’s a Look at Their Due Diligence!

Ever wonder what makes a buyer’s agent so much better at snapping up the right property than just anyone?

A huge part of it comes down to their ability to dig up and piece together tons of data to figure out how good or bad a property is and what a fair market price should be based on the current conditions.

Here’s how buyers’ agents handle their due diligence to make sure you’re making smart decisions when buying a property. 

1. Finding a Property

Property Research: The first step is digging into the property’s past. This includes checking out who owned it before, what it sold for previously, and if there have been any major renovations or changes. A solid buyers’ agent will give you all the juicy details with reports on crime rates, past sales for the property, and profiles of the suburb where it’s located.

A Physical Inspection: Next up is setting up home inspections to catch any issues, like structural problems or pests. Your agent will go the extra mile by providing detailed walkthrough videos. These videos will cover everything from the property’s structural integrity and potential maintenance issues to how the floor plan works. Plus, they’ll include drone footage to give you a bird’s-eye view of the roof, nearby properties, and the immediate area around the home.

What’s the neighbourhood like: Your agent will also research the neighbourhood to make sure it suits your needs. This means looking into local amenities, crime rates, schools, and any future development plans that might impact the area.

Contract Review: They’ll pore over the purchase agreement and other legal documents to make sure there aren’t any hidden traps or unfavourable terms that could come back to bite you.

Legal and Regulatory Checks: Finally, they’ll ensure the property meets all local zoning laws, building codes, and any other regulations that might apply.

2. Understanding Market Value

To figure out if the property is priced fairly, your agent will compare it to similar homes in the area. They’ll prepare a market appraisal, which is a crucial document that helps you make informed pricing decisions. This appraisal is based on the most up-to-date market data and is essential for determining the fair market value, supporting negotiations, and assessing current market conditions.

3. Negotiation Planning

• • Private Offers: If you’re making a private offer, the key is to submit your best offer right from the start. You typically won’t get a second chance to up your price unless your offer is close to competing offers. In these cases, it’s important to know how to make your offer stand out in ways other than just price. 
  • Private Bidding Auction: If you’re in a private bidding auction, you’ll start with a written offer and then be prepared to increase your price if asked. Your agent will guide you through this process to maximize your chances of winning. 
  • Sale by Tender: For sales by tender, you’ll need to complete all your due diligence and submit a written offer before a deadline. After that, the selling agent reviews the best offers, which could lead to auction-style bidding or multiple rounds of negotiations. 
  • Bidding at Auction: When you’re at an auction with multiple bidders, a great buyer’s agent will have a strategy to create the impression of having unlimited funds. They’ll aim to make the auction fast-paced and high-pressure to intimidate other bidders, while still managing to keep your budget intact. 
  • Bidding at Failed Auctions: In Victoria, if a property doesn’t meet its reserve price, the highest bidder gets the chance for exclusive negotiations with the seller right after the auction. Your agent will know how to handle these situations and navigate vendor bids to secure the best outcome, even if the reserve hasn’t been met.

By breaking down the process this way, buyers’ agents ensure you’re not only well-informed but also strategically positioned to get the best deal on your new property.