When property markets are strong like they are currently, finding a good property is not an easy process.
Enlisting the help of a buyers agent is a great way to give you the best opportunity of finding your dream home or identifying a top-quality investment property. However, there are a number of advantages that come with using a buyers agent.
Identify High-Quality Opportunities
While most Australia’s love talking about property while sitting around a BBQ with family or friends, the reality is that most are simply not experts at identifying high-quality investment opportunities.
Whether an investor or owner occupier, property is quite often most peoples largest investment with the bulk of their net worth being tied up in it. While property does increase in value over a long period of time, there can be huge discrepancies between different cities, states and certainly suburbs.
One of the main advantages of working with a buyers agent is the fact that they understand what a high-quality opportunity looks like. If you buy poorly initially, you might very well see no capital growth for a long time. While that might not worry some owner-occupiers, it’s important to understand that the opportunity cost that you’ve given up is very large.
By working with an expert who is on the pulse of the market and understands how to build a high-quality property portfolio, you can be confident that you’re making a long term investment that could very well set you up for life.
When the market is tight and there is a lack of quality stock available, it’s vital that you turn over every stone in your bid to find the very best property.
A huge source of great opportunities are often ones that never make it to the large real estate portals. These are known as off-market properties and generally speaking, these are found by building relationships directly with sales agents.
Buyers agents are often the first point of contact for a sales agent trying to move a property and if you have access to these opportunities then you can very well find some of the best deals with little to no competition.
As buyers agents, we also take the off-market process one step further and look to contact owners directly, if they have a property that might be suitable for our clients.
Similarly, we also have a large network of professionals that bring us properties before anyone else, including people like property managers.
Negotiate on Your Behalf
For the most part, owner-occupiers might only ever own one or two properties over the course of their lifetime. That means they negotiate a property deal every 10 or 20 years at best.
In reality, you cannot be expected to negotiate all that well against a seasoned sales agent when you never do it. Add to that the emotional element that is involved when you’re trying to buy your family home and it is no wonder many people negotiate poorly.
A buyers agent is a professional negotiator, and their job is to not only know how much the property is worth but also extract every last detail about the property that could be used to flip the negotiation in the buyer’s favour.
Negotiating effectively can be something that saves the buyer tens or even hundreds of thousands of dollars and this part of the process alone will more than cover the buyer’s agent fees.
Bid at Auction
In areas like Sydney and Melbourne, the vast majority of quality homes go to auction.
Auction is a great way to get the very best price if you’re a vendor, but for unsuspecting or new buyers, it can be a process of continual disappointment.
Generally speaking, sales agents always give price guidance on a property at the lower end and that puts buyers in a tricky position at auction if they don’t know how much the property is really worth.
A buyers agent will not only understand how much you should pay for a property but also that compares to what your buying limit is. On top of this they can assess the auction in real-time and understand where you stand and your odds of success.
An auction is an extremely emotional process and having someone by your side will likely save you a lot of money and also save months of frustration.
While it might be fun looking at home opens early on when searching for a property, after weeks and weeks of losing your Saturday, the process gets tiresome.
Buyers agents have huge networks of people that bring properties to them and from there they can quickly shortlist ones that are most suited to you.
More often than not they will be able to organise inspections during the week, in private and you won’t be forced to jump through all the auction hoops either.
The saved time alone is well worth the cost if you’re a highly paid professional or business owner who is time-poor.