Should I use a buyer’s agent to purchase property?
Buying property can be tricky. There are some major setbacks that can make the whole experience a pricey mistake.
Luckily, you can hire a professional property buyer to represent you at each stage of the buying process.
What do buyer’s agents do?
Based on your criteria, they will search out the best property on the market. They also have access to off market listings.
What is an off-market listing? This is real estate that is for sale without a public selling campaign. The benefit of buying off market listings is a reduced level of competition when negotiating with the property seller.
Once you have shortlisted a few houses with your buyer’s agent, it’s their job to work out its market value. They will physically inspect the houses and a number of properties in the area. He/she will then compare this to recent sales in the area. This process will determine if the home is good for a long-term investment and its true market value.
Knowing market value is important, why? Banks will only lend you up to 80% of a property’s market value. It’s common for property buyers to over pay for property at auction then have problems financing the houses because banks will not loan out the funds.
A good buyer’s agent has some experience in construction. They will be able to spot any obvious structural issues a property might have.
Auction and or Private Treaty Negation.
By the time a property buyer has come to this point, they have emotionally bought into the property they’re looking at. At this point your buyer’s agent has short listed your best property from everything on the market, understand it’s true market value and mapped out a plan of attack.
It’s up to the buyer’s agent to bid at auction or negotiate via a private treaty on your behalf.
They will make a decision on submitting an offer prior to auction or choosing to bid at auction, depending on the property, buyer interest and the real estate agent’s reputation in the market place.
Prior to any negation, a buyer’s agent will complete their due diligence and construct a negotiation plan.
During a negotiating process, a buyers agents true tangible value shines. A good buyer’s agent should save you enough money to at least cover their fees. In most cases, you should save tens of thousands of dollars during any negation process.
Buyers agents have people in the know
When buying property, you will need a team of professional to help you succeed. A buyer’s agent can refer good quality conveyancer’s, mortgage brokers, property managers and building inspectors to help you get a deal done.
How much do buyers agents charge?
There are hundreds of buyer’s agents out there that have a range of fees and/or commissions. Watch out for buyer’s agents that charge on a percentage of a property’s value as it can give them an incentive to spend money.
For transparency when it comes to fees, it’s wise to hire a buyer’s agent that has fixed fees regardless of a client’s budget or how much a buyer’s agent works (number of auctions or private negotiations).
Buyers agents offer a non-emotional approach to buying good quality property. A professional buyer’s agent should save the buyer time and money, help them buy the right property for the right price and most importantly avoid the buying mistakes amateurs are prone to when buying property.