One of the key things I tell my clients when it comes to investing is…
Purchasing a property without the headaches
If you wish to purchase your dream home or an investment property without the headaches, then enter the words ‘BUYERS’S AGENT’ or ‘PROPERTY ADVISORS’ and watch how they work with you to secure your dream property.
Buyer agents are extremely popular in the United States, while in Australia it is increasing in popularity. A Buyer’s Agent will assist you and work on behalf of you (the buyer) to find a number of properties, analyse them, negotiate with the vendor or selling agent, and locking in the deal at the best price.
As great as it sounds to have a buyer’s agent on your side, you must remember that there is a price to pay. Prices will vary depending on who you go with. However, it is quite common for agents to charge roughly 1.5 per cent of the property price. Like with everything in life, it’s good to know what your paying upfront before you purchase so hire a property advisor / buyers agent that works for a fixed fee.
So overall it isn’t cheap. However, this doesn’t mean that you don’t undertake their services, all it means is that you should consider if having a buyer’s agent is right for you.
Advantages of Buyer’s Agent:
They can save you money
A buyer’s agent might be able to save you money though sharp negotiating or spotting a great deal on the market. Due to their professionalism, they are able to value a property and have the negotiating skills to potentially bring down the price of a property, however this is only the case if the price of the property is flexible. If the vendor wishes to sell the house quickly, then the property price may be more flexible then if a vendor is willing to wait and see what the market does.
If you ever decide to purchase a property through a private sale it will require a high degree of negotiating skills as you will be talking with a selling agent. Therefore, it may be a good idea to have a buyer’s agent by your side as they will be able to negotiate on behalf of the buyer to secure a deal. If they are successful in the negotiating process then they could potentially save you thousands or even tens of thousands of dollars.
Senior Property Advisor of Wise Real Estate Advice, Mark Ribarsky encountered a young couple who were sceptical of hiring the services of a buyer’s agent to purchase their first property. They ended up purchasing a property for $785,000 after a failed auction saving his clients over $60K from the op asking price, the whole process took 8 weeks. Prior hiring Mark they were searching for a property for 9 months and were willing to pay for property above market value.
Help find you off-market properties
Off-market properties, are properties that aren’t listed or advertised online, and can be an appealing option for buyers. There reason is because buyers will be able to purchase a property at a lower price, as they aren’t competing in a competitive market, and will not have to attend auction. Having access to off-market properties is a technique that agent use to attract clients, however as a buyer you should not sell out on this basis.
Helping you save time
People tend to forget that a buyer’s agent will save you a lot of time when it comes to finding a property. If you are an interstate investor or you’re are moving to another state, then hiring a buyer’s advocate will save you a lot of time, as you will not have to fly to a state just to inspect and purchase a property. You will never have to visit the property, as the buyer’s agent will take care of everything.
Bidding at auction
Bidding at auction can be a difficult time, and many people hire the service of an agent to bid on behalf of the buyer. The fees for this can vary but normally start around $600. An agent will make sure that you do not over bid and pay way above market value. Hiring an agent does not necessarily mean that they will definitely secure a property, all it means is that they will give you an accurate market value of the property, and use techniques to negotiate a better purchase price or settlement terms.
Article provided by Wise Real Estate Advice