Fact: Every property buyer can be their own agent. Still, some investors choose to engage professionals and be guided in their decision-making. Do you really need to work with experts in order to succeed or can you do just as good on your own?
Due to the popularity of property as an asset class across Australia, the buyer’s agent industry has become a growing sector through the years, with many investors attributing a huge part of their success to the wisdom and guidance provided by their agent.
However, some people are still reluctant to engage buyer’s agents and other professionals, mainly because of the extra expenses they will incur.
While pro-agents would argue that their services are worth their weight in gold, property experts believe that buyer’s agents are not necessary for success as long as the investor is confident that they have the skills needed to purchase a property well.
Being able to purchase well means having the capability to understand market movements and the economic factors that influence them, knowing how to negotiate with sellers and ultimately get a good property deal as well as being able to manage the asset well post-purchase. Doing all these will, naturally, require both time and effort.
According to Right Property Group’s Steve Waters: “Don't feel as though you have to use one. If you feel that you've got the capabilities to go out and do it yourself, explore that option.”
As easy as it sounds, not all investors have the time to dive into in-depth research every time they purchase a property and look after each asset as they grow their portfolio, which is where buyer’s agents come in handy.
“A lot of people can do this themselves. Those who can't do it acknowledge that they don’t have the right skill set or they're just time-poor,” the property expert highlighted.
If you are set on engaging a buyer’s agent for your property purchase, the first criterion to consider is their longevity in the market, or their ability to thrive in different market cycles.
Considering the advantage of technology, anyone can identify themselves as a buyer’s agent at any given time. In fact, hundreds of new independent buyer’s agents and buyer’s agent companies open for business monthly.
What sets the good ones apart is their affinity to property as an asset class—being an investor themselves is a great sign—as well as their ability to stay in the industry for a long time.
Mr Water said: “There’s a bit of scar tissue built in the game as they’ve seen a couple of markets going up, down and sideways. They've experienced different market cycles, which is really important because anyone can be a buyer's agent in a good market.”
“Some buyer’s agents don’t always like to buy property in a softening market, but often, that's when you need the talent of a good professional to support you because that's where you could unexpectedly make your money,” he added.
Buyer’s agents and buyer’s agent companies that are certified members of the Property Investment Professionals of Australia (PIPA) are also guaranteed to provide services that comply with a certain of conduct.
Aside from their skills and certifications, good buyer’s agents are also commended for their transparency—from the services they offer and the process they follow to the breakdown of the fees they require.
Full disclosure is a mark of an honest and reliable professional, particularly in the real estate industry where thousands of dollars are being transacted every day.
A good buyer’s agent will also work hard to build a relationship with their client in order to understand their financial circumstance and how it can influence the strategies they need to implement in order to achieve their goals.
Essentially, a good buyer’s agent is a professional who will always work in their client's best interest.
Tune in to the August episode of Investing Insights with Right Property Group to know more about the value of engaging property professionals in your wealth-creation journey.