We are living in a time where real estate has never been more expensive. In addition, property buyers are also paying record land tax and stamp duties. When there is a lot of money at stake, it’s wise to have all the help you can get to avoid the pit falls that come with real estate buying.
Many property buyers turn to family and friends for advice, this can be both good and bad. Yet, there is nothing like a paid professional that is working in your best interest.
Buyer’s agents or Buyers Advocates are real estate gurus for hire. They can make sure you select the right property every time. We will look at the role of a buyer’s agent and the benefits of using this kind of service.
What mistakes can you avoid when using a buyers agent?
Buy The Best Property in a Good Suburb
Did you know when a buyers agent selects a property to purchase, they usually only select one property from hundreds of properties for sale in a suburb?
Buyer’s agents apply criteria that helps filter out any properties that have poor growth prospects. Things like: not being located on a main road, walking distance to major public amenities, a balanced floor plan that’s typical for properties in the area etc…
The common buyer can get caught up in an emotional decision and not realize what they’re buying until it’s too late.
Buy a Low Maintenance Property
Long-term property owners want to purchase a property that is low maintenance, things that will not cost an arm or a leg and require constant maintenance.
High maintenance properties can seem to have endless bills with hidden expenses, layered within problems that require multiple trades people. If you’re not a whiz on the tools, most of the time, it’s better to stay away from this kind of property.
In a strong real estate market, it’s common for property buyers to over pay for property just to secure it at auction. Why is this bad?
If you’re relying heavily on finance, your bank can lend you less money, putting the responsibility on the property buyer to make up the difference elsewhere.
If a property buyer cannot complete the purchase for whatever reason, the property seller (vendor) has the right to keep the full buying deposit.
Time On Market.
Many property buyers will spend months trying to buy property without result. A good buyers agent should take you though a buying process within a 6 to 8 week time frame.
What Makes A Buyers Agent A Guru?
Buyers agents started off their real estate careers as real estate agents. Hence, they understand what it means to be an agent, including the pros and cons. Why is this important?
Real Estate Agents are the gate keepers of property that is for sale. To buy anything, you have to know how to work with them. At the same time, get the most you can out of them for your benefit.
This makes buyers advocates masters of working with selling agents. They understand how to negotiate with each other, bring legitimate sellers and buyers together for their mutual benefit. There is a mutual respect between the parties that makes buying property simpler.
Hot tip: When selecting a buyer’s agent, make sure they own property or a portfolio of properties. There is nothing worse that a sales person that doesn’t take their own advice.
How do they help the buyer?
Most buyers that start the process of buying property are highly motivated and energetic. After a few failed attempts, the buyer is put through an emotional roller coaster. The advantage of mentally buying into a property to miss out can seem overwhelming. Once a buyer is at this point, property-buying mistakes do happen.
A buyer’s agent will make sure you’re ready to buy. They will map out your needs and wants and create property selection criteria. They will also make sure your finances are in check.
At this point they will recommend and inspect properties based on your buying criteria. They will handle all the due diligence necessary when it comes to short listing properties. Things like
- Cross-checking the price against comparable sales so you don’t pay too much.
- Making sure the property ticks all the good investment boxes to give you a strong resale down the track.
A buyer also gains a strategic advantage to off market properties. This is property that is for sale without a public advertising campaign.
Once a property has been selected and all the groundwork has been completed it’s time to purchase. At this point, an advocate will either attend an auction or try and stop an auction by negotiating a private sale. For more information on negotiating, please read our article on ‘6 Strategies for Property Negotiating Success.‘
This is where a good buyers agent is worth every penny. In addition to working out a great price, they will negotiate many things when settlement occurs. Things like: safety clauses like finance, building and pest inspections, whom will be conducting repairs etc.
Depending on the value of the property, it’s not uncommon to save tens of thousands of dollars at the point of negotiation or buy a better property that will be worth more when you’re looking at selling.
Which buyers will benefit the most from a buyer’s agent?
Every buyer is different, from what their budget is, to reasons why they’re buying. A good buyer’s agent will tailor a winning buying strategy that suits a range of residential property buyers. From first and second homebuyers, empty nesters, investors, self managed super funds and expats.
A buyer’s agent that can help a range of buyers. They must have years of experience, not only in buying property but owning property, building developments and buying through a self managed super fund.
For more information on buyers agent, please don’t hesitate to pick up the phone and speak to one of our property experts.