Investing in a property is a long-term investment that bears high rewards in its future value if you choose to sell it. Whether you are buying a home or just entering the property investment business, you need to make sure that your investment will be fruitful in the future.
To get all the odds to play in your favour while buying a property, make sure to have a professional by your side. A real estate agent who oversees all the tasks on behalf of the buyer is referred to as a buyer’s agent. So, if you want to make the right choice of investment, then hire the right buyers’ agent.
But the question is, how will you know the right one? Well, if you are looking to buy property in Sydney and want to hire a buyer agent, then read this blog until the end, as it contains detailed step-by-step information to choose a buyer agent.
Services Offered By Buyer’s Agent
A buyers’ agent is a licensed real estate professional who acts in the best interest of their clients. Their clients can be property investors, home buyers, commercial property buyers, or can be interested in buying investment-grade property.
Simply put, their clients are the buyers who are looking to buy any property, but in order to do so, they need property managers. Not all buyers agents offer full services; some of them can offer partial services. If the buyers’ agent is offering you their full services, then those services should include the following:
- Negotiation of the purchase price and terms of the property.
- Handling the real estate transaction by overseeing the contracts and exchanges.
- Property inspection.
- Providing insight about recent sales.
- Inspecting shortlisted properties.
- Search and find newly available listings.
- Property management, asset management and leasing
- Understanding their client’s requirements and acting in their best interest while sealing the deal.
- Overseeing due diligence process such as pest inspections, building inspections, engineering reports and surveys.
Step-by-step Guide To Choose Buyers Agents in Sydney
When choosing an agent to work for you, the trick is to ask all the right questions. If you know what to ask the buyers’ agency, you can pave your way into finding a good buyer agent. You can start by asking these simple questions, but make sure to pay attention to what they answer as that’s the key for all of it:
What Is Your Industry Experience?
You need to make sure that you are not paying for the services of an amateur whose job even you can do easily. Thus, ask the agent how long they have been in the industry. An experienced agent is far better than ten inexperienced agents. The key to knowing that your agent is right lies in their answer.
Choose the one who has been working in the industry for at least ten years. Also, avoid the agency with the dual policy of working with buyers and sellers as their best interest is conflicted. Instead, go for a totally independent agent.
Do You Have The Necessary Local Knowledge?
Whether you are purchasing a property in the local market or buying interstate, it’s important to have expert advice from a professional who has all the insight into the local market.
Their intel should include the facts that can differentiate between the localities and can tell you about the streets you should avoid, the best suburb streets and streets that are poised for upgrades.
What Is Your Process?
Since you are going to hire a buyer’s agent, it’s within your rights to ask all the necessary questions about their methods. Asking such questions will give you a fair idea about how cost and time efficient they are going to be while rendering their services to you.
Do You Have A Reliable Network?
To have increased access to market insight, an agent should have a wide range of networks. The famous adage “It’s not what you know, it’s who you know” defines this situation perfectly.
The buyer’s agents use their professional contacts with the selling agents, brokers, and other real estate professionals to gain intel about the pre-market and off-market properties.
The properties that are about to enter the market but have not entered yet are referred to as pre-market properties. At the same time, off-market properties are those that are not on sale or are having silent sales.
Do You Have Professional Indemnity Insurance?
Business organisations that sell and offer products and services need PI insurance to cut back on their losses. It is an insurance that helps in compensating the customers of the business organisation in case the customer sue’s the organisation due to negligence of the services.
If your agent has this insurance, then it’s an assurance to you that no matter how the deal goes, if the agent brings you any loss, then they will surely compensate you for it. Asking this question is essential for your financial security.
What Are Your Credentials?
According to the REBAA (Real Estate Buyers Agents Association of Australia) president, an agency can practice real estate purchasing interstate even if they have a license for one state.
However, it would be better if you choose the agent who has the necessary license to practice in a particular state in which you are interested in buying a property.
Also, ask whether they are a certified member of REBAA or not. It is a real estate institute that has accredited buyer’s agents and practices a Code of Conduct in their real estate transaction.
Moreover, if an agency is a member of REBAA, then it means that they also have PI insurance.
What Are You Going To Charge For Your Services?
A buyer’s agent can have two kinds of fee agreements. First is tender contracts in which they just take responsibility for the deal, and in return as you pay them a particular amount.
The second is to pay them 1.5% or 2% of the negotiated purchase price. If the contract is agreed upon, then do not pay the agent more than the agreed terms.
Finding the right buyers’ agent who is competent and will act in your best interest is indeed an arduous task. However, you can make it slightly less challenging by incorporating and asking the right questions mentioned above to the buyers’ agency. Your primary focus should be their industry credentials, the services they offer and their experience.