Many property investors believe that finding a good buyer’s agent, as well as other members of one’s financial team, is just as crucial as finding the right property that will contribute to the continuous growth of their portfolio.
Buyer’s agents generally help you find a good property in the best location, based on your specific financial goals as well as your capabilities and limitations as a property investor.
According to Propertyology’s Simon Pressley, an investor must only entrust a part of his journey to an agent whose core business is property investment. After all, your goal is to find a property that will be best for creating wealth.
He said: “It requires a completely different set of skills to help someone make an investment decision as opposed to working with whether they like pink or blue on the bedroom wall for their family home.”
“As an investor … the fundamental and most important question [is] ‘Where in Australia is the right place to invest?’ ” Simon added.
Some of the biggest companies that offer buyer’s agents’ services have different models to choose from, and in order to find the best agent, you also have to be willing to be a cooperative client. The only way to determine the best strategy for your personal investment journey is to be open and transparent about your financial status as well as your goals.
At the end of the day, the best buyer’s agent is the one you feel the most meaningful connection with.
According to Simon: “That [requires] lots of dialogue, lots of emails—don't rush in … [because] none of us have got a crystal ball … [and] things … change in the world every single day.”
“All a professional can do … [is] draw on their experiences … [try] to join up all the dots and say, ‘When I join these together, this picture in the future looks [either] positive or negative.’ That's all you can do,” he explained further.
Trust and transparency
Smart Property Investment’s Phil Tarrant, who is an avid investor himself, has always believed in the value that a good financial team adds to his portfolio and his overall investment journey. bWhile property professionals should not be expected to be certain about the movements of the market like they’re carrying a crystal ball, property investors must learn to trust their advice, which is always grounded on knowledge and experience.
In order to find and keep a good professional on your financial team, one must be committed to becoming a good client. A good client is simply someone who is willing to share all the information—whether good or bad—needed to the people they work with so they can make smart decisions together.
According to Phil: “You need to be completely open and transparent … Don't go hiding things that you don't want someone to know because they're not going to be able to give you the advice you need in order to make the right investment decisions.”
“If there's debt that you've got … you've got to be open and clear … on this because [in order] to get a full holistic value out of using a buyer's agent, you've got to be open and … let them know what's going on,” he added.
While it may be quite uncomfortable to share your fears and concerns to professionals you’ve only just met, it’s one of the best ways for you to get to know each other and be familiar with both parties’ expectations. As you go on your journey getting more acquainted with the professional you work with, you also acquire the knowledge and skills that they share so you can become a better investor.
Being honest and transparent about your ideas is a good way to expand your horizons and learn from the best.
Simon said: “If there are particular locations that you've got some interest in from some DIY [do-it-yourself] research, share that with these professional bodies that you're talking with. It's a good opportunity for them to respond.”
“They might sort of say, ‘That's not a bad location and this is why I feel that way’ or ‘I wouldn't invest there because of these things.’ That gives the consumer an opportunity to form their own opinion as to what the level of skill is,” the buyer’s agent concluded.
Tune in to Simon Pressley’s Q&A episode on The Smart Property Investment Show to know more about how to pick the right buyer’s agent to suit your own needs, how to balance your time effectively as an investor, and how confident you should be when using a buyer’s agent from another state.