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Spot the red flags: How to choose the right buyer’s agent
With a raft of buyer’s agents available, investors need to be careful in choosing the right expert by doing due diligence, vetting processes and strategies, and identifying red flags. Here’s what to look for.
According to Smash Property director and buyer’s agent Nick Voegt, investors need to choose their buyer’s agent wisely, ensuring they fit their personality and their portfolio strategy.
“There's a lot of different buyer's agents out there. Everyone has a slightly different strategy, which is great. You just have to find the one that aligns with your goals,” Voegt told SPI.
He said that investors should vet buyers’ agents’ processes, experience, and strategy while building relationships through questions, transparency, and mutual respect.
Here is what to look for in your buyer’s agent.
1. Understand processes
According to Voegt, before committing to a buyer’s agent, investors should understand their processes, including how they assess markets, shortlist dwellings, make decisions, and when they reject properties.
He said that by having an overview of how buyer’s agents work, investors can already have an idea of the services they will receive.
“You might not get the full step-by-step detail, but at least a strong enough understanding of what the process looks like, so you are comfortable with the service you’ll pay for.”
2. Check their portfolio
Voegt said that the second step before choosing a buyer’s agent will be to assess their portfolio, especially if they’re advising on building wealth through property.
He said that investors shouldn’t hesitate to ask their potential buyer’s agent what their portfolio looks like, what types of property they have, what strategy they have used to build wealth, and whether they are open to helping you get there.
“I think it's important to know the person that you're working with actually has a portfolio.”
“By asking them, you can actually check that they've done what you're looking to do. It’s critical to get it right, particularly if you want to build a property portfolio.”
3. Know their strategy
Voegt said that in property, there are as many strategies for building a portfolio as there are buyer’s agents, and determining upfront what their buying strategy looks like will be key.
“Everyone has a slightly different method, but will they have a predetermined off-the-shelf strategy or will they build one tailored to you and your goals?”
Additionally, he said that investors should clarify what types of properties the buyer’s agent typically buys, such as units, houses, new builds, or established, as some will prefer one type of dwelling over another.
“That's probably something that I'd want to determine upfront because you do want your portfolio plan to look like, and what type of assets they will be looking into.”
4. Do your due diligence
While having conversations with potential buyer’s agents is the first step, Voegt said that investors should not skip their due diligence.
“Do your due diligence on the buyer's agent prior to signing anything.”
“Check if they have content out there. Is there a podcast you can get a feel for the vibe of who maybe the person or the team actually is before you really commit to paying them to do the service for you?”
He also encouraged investors to check reviews carefully, while some may be fake, spotting questionable ones early can reveal red flags before even speaking with the agent.
“If you see something suspicious, ask them questions.”
5. Watch for red flags
Voegt said that during conversations, investors can easily pick up some other red flags, including vague answers or empty promises.
“If you're asking about the process and they're giving you vague answers, and promise you access to off-market deals because they know the right people, I would suggest you ask a few more questions.”
Additionally, he said that another red flag is around timing, with some buyer’s agents trying to rush their clients into a purchase.
“They should be advocating for you, not trying to get the deal across the line or essentially sell your property. That's a major red flag.”
Additionally, Voegt said that before committing, investors should carefully review the service agreement, fees, and refund terms.
6. Keep an open mind
Voegt said that for the buying process to be successful on both ends, investors should keep an open mind as they will learn something along the way.
“Some buyer’s agents have amazing portfolios with great results and a great mindset; you can learn from them.”
“Ask questions during the process, get involved with the team, it will help you be comfortable throughout the process, but also build the relationship and respect.”
If issues arise, Voegt said that investors should have an open conversation to resolve them and if not, part ways under consumer law protections.
