4 Tips To Consider When Hiring A Buyer’s Agent In Australia
Here we look at reasons to hire a buyer’s agent and what they can do for you.
- Do I need a buyer’s agent?
- What does a buyer’s agent bring to the table?
- Should I spend money on an investment property?
A serious question in today’s market and as a famous saying goes “You have to spend money to make money.”
For investors in Canberra for example, who have made money in the markets before will tell you the justification of the purchase price is in the long-term rewards in property purchasing and investing.
Twenty years ago, a buyer’s agent was a relatively new concept that many people in Australia had not heard of and didn’t really understand where they fitted into the market.
So a central question for today’s market of property purchasing is why should I hire a buyer’s agent for buying property in Canberra, and what can they achieve for me?
A good place to start before we get too ahead of ourselves is a closer look at property in Canberra, and its financial rewards. Nothing is guaranteed in 2020 as the slightest mistake in the marketplace can cost you dearly.
Capital growth on property is affected by a wide-range of factors, and due diligence is essential before jumping in with both feet.
Buyer’s agents are also known as buyer’s advocates, and this is where they come in. Their advice is not just to buy; it’s WHERE to buy. Buying your first home in Canberra quickly and efficiently but in the right areas for capital growth is the key to success, both residential and investment wise.
A reliable and efficient buyer’s agent will take the time to get to know their client. A serious meeting to determine long-term goals, timeframes, budget, family needs and many other factors are discussed for the agent to go away and decipher what is worth the client’s time and what is a complete waste of time.
Of course, the buyer must meet the agent halfway by knowing what they are looking to achieve, whether it be growth, cash flow, or simply adding value to properties through renovations. For the homebuyer location, children and schooling must be clear to find what is the best solution for moving forward.
Getting the right property comes down to due diligence which many investors do not have the time to conduct, and that is why the buyer’s agents market has proliferated in the past 20 years.
Buyer’s agents are your partner and superb in negotiating. Many people are successful in the city but not necessarily at bartering over thousands of dollars in the property market. It’s a stressful process for someone who’s primary business is not property, therefore going it alone you can quickly lose money.
In the property market, it’s very easy to make a quick-fire decision and lose.
A buyer’s agent ensures you are not misled, on the upside and downside and also make sure you don’t miss out on a bargain either.
How and whom do they help?
For newbies to the market, my advice is to use a buyer’s agent, over time if you learn the ropes alongside them then great, go for it, but at the beginning, you can get eaten alive in the marketplace.
When you speak to people that have bought a property in the past, like many things in life you look back and think ‘I could have done better’.
Buying in what turned out to be a bad area, paying over the top for the property and so on, are common mistakes but a buyer’s agents business and only business is to ensure that doesn’t happen.
For buyer’s who are pushed for time, do not understand the market thoroughly, and have conflicting information from agents, friends or media, turning to a Canberra buyer’s agent is a must.
There are three classic reasons why people make mistakes in the market:
- Time constraints
- Lack of market or area knowledge
- Inability to negotiate
A Canberra buyer’s agent is generally flexible to not only take on negotiations, but Canberra property auctions bidding on your behalf, so if you are sure about a property and it’s a must-have, they will then step-in, saving you the drawn out, and often fruitless process to negotiate buying property in Canberra to get you the best price at auction.
An auction bidding agent is your best friend as auctions are intense and unless you fully understand how to make your mark you will come out empty-handed.
An alternative service is called ‘search and acquisition’. Meaning they find and thoroughly inspect the property for no hidden problems, give a full evaluation and negotiate the price, for first home buyers Canberra this is solid advice.
Finding the right buyer’s agent
Understanding what services you require is the first step towards understanding who is the right buyer’s agent for you. There are different services suited to different requirements of the buyer.
You will find general buyer’s agents and others who specialise in niche properties and property investments.
On one side, you have the property investor where capital growth and profit is of utmost importance. On the other side, you have the homebuyer who is looking at the location to potentially settle and make a family where emotions with the purchase come into play.
Regardless of what category you fit into, it is essential to find someone with experience, fully licensed and know the town, city or even the suburbs of where you are interested in buying.
During the initial deliberation, the buyer’s agent will need to get to know you to be able to propose properties that fit your criteria; you must also set out to be clear on the fee structure.
Fee structures come in different forms.
A set fee is common, or a percentage of the final purchase price. In some cases, you can pay a retainer for their time while they go to work on your behalf, this can be subsequently deducted from the final commission of the purchase price.
Things to be wary of with a buyer’s agents
For all the benefits a Canberra buyer’s agent brings to the table for any property investor or purchaser, the industry is open to abuse.
Here are a few tips to look out for when deliberating over what buyer’s agent you should choose to partner you on your journey.
Many buyer’s agents have swapped sides since the industry has taken off in the recent past, so you can be dealing with a buyer’s agent who was formerly as a seller’s agent.
For a property investor, someone purporting to be a Canberra buyer’s agent whose area of expertise is in real estate doesn’t always understand property investment and how to analyse your potential ROI.
Knowing about pricing and negotiating doesn’t mean they have a future knowledge for the property investment market.
- Look out for agents looking for a quick turn-over and talking over you
- Agents who take very little time to understand your needs and requirements
- An agent that doesn’t already have a network who understands what you are looking for and can’t show you a portfolio
- Agents that are not sole buyer’s agents but still in the seller’s agent market. The price can then be manipulated to suit their pocket more than yours
If you are buying your first home Canberra, or in general buying property in Canberra it helps to get referrals and study online recommendations and reviews before going ahead to ensure you find the right one.
Focus on the positive
For the negatives, we have just covered; let’s finish the article with the positives.
Finding property by yourself is hard work, frustrating and can lead to many time-consuming disappointments along the way. Auctions can be a nightmare, something you are craving falls through your fingers week after week.
The right buyer’s agent wants to help. He or she will already have a network and knowledge of the area. And even be able to offer you ‘Off-market properties’ meaning they know, having dealt with many sellers, properties that fit your category after your initial meeting and get you a viewing before the property even hits the market!
These are where an ACT buyer’s agent is worth their weight in gold.
If you are new into the market, save yourself time, a buyer’s agent saves hassle and ultimately disappointment or financial loss. Buying a house in Canberra or an investment property can be frustrating so partnering with a reputable buyer’s agent will negate all of these, and you could be looking at precisely what you had in mind with a week rather than a year. The internet is your friend look at the reviews and good luck!
1 thought on “4 Tips To Consider When Hiring A Buyer’s Agent In Australia”
Thanks for letting me know how I can hire a buyer’s agent in Australia. I am interested to invest in the property in Gold Coast. Do you think it is better to speak to an agent about this who is specialized with property dealings in Gold Coast? I just want someone who can negotiate successfully because this is the hardest and the most important part in real estate business.