A buyer's agent searches, evaluates and negotiates the property purchase on behalf of buyers. The key difference between a buyer's agent and a traditional real estate agent is the clients they represent. A buyer's agent works for buyers, whereas a real estate agent works for vendors.
FULL SERVICE – AND MORE!
Aus Property Professionals is a 'full service' property buyer's agent and their director Lloyd Edge explains what to look out for when choosing a buyer’s agent.
“You need one who is on the same page as you and understands your needs. They need to search and evaluate properties that meet your specific criteria, and then negotiate the purchase of your selected property without any ulterior motives”. “When we meet a new client we always begin with a free strategy session to find out where they are financially and where they want to be in 5, 10 or 15 years and what sort of lifestyle they want to be leading”. We will then search for a property that best fits the client’s strategy”. A good buyer’s agent should always have the client’s needs as their first priority explains Mr Edge. “Each property we find for our clients needs to set them up for their next purchase. This means there needs to be some equity created up front in the purchase by either purchasing under market value, or purchasing a property with the potential to add value through a renovation or development”.
It is also important that your buyer’s agent provides you with the knowledge you need to make an informed decision about the value of a property, without the 'sales hype' that usually accompanies real estate agents. Aus Property Professionals educate their clients about buying property, right from our initial examination of your investing and financial goals at the strategy session. This saves you considerable time and stress making the biggest purchases of your life.
THE RIGHT PROPERTY . . .
Instead of you trawling through the newspaper real estate sections and Internet search engines, a good buyer’s agent should do the hard work of short-listing suitable properties for you. Their real estate industry contacts open up a wider choice of properties than private buyers can access, often well before they're put on the open market. This can give you the opportunity to snap up a bargain before the 'For Sale' board goes up!
Mr Edge explains that his company eliminates the time-wasting and frustration of inspecting endless unsuitable properties recommended by real estate agents who just want to sell them to any buyers they can find. “And through our network of contacts we can source and inspect properties in several locations without you needing to travel”.
Aus Property Professionals carry’s out very thorough due diligence on any property they consider. The property needs to have all the fundamentals of an investment grade property. These include being in areas with a diverse range of industry, rising population, new infrastructure, hospital upgrades, transport, education (schools and universities) and close to lifestyle amenities such as cafes, restaurants, shops and parks.
Mr Edge explains that his company also thoroughly checks out the property for the condition including obtaining a building and pest inspection. They also check to see if the area is low lying or in a flood zone, has there been any re zoning or development applications lodged in the area, or are there any easements on the property.
A good buyer’s agent should source the most appropriate properties in locations with the best capital growth prospects and recommend properties that complement others in your portfolio to provide a balance of capital growth and cash flow. This balance helps you get better serviceability with the banks so you can build your property portfolio faster. 90% of Australian Property investors never get past two properties. This is because of either the wrong financial structure or purchasing the wrong property.
AT THE RIGHT PRICE…
You should never pay more than a property's true worth. Mr Edge explains that his company provides background information about a property’s current and potential future market value. All buyer’s agents should be using up to date and accurate information through the use of professional software such as Corelogic RP Data.
A buyer’s agent gives you the advantage of their extensive experience negotiating with real estate agents and vendors, whether it's by private treaty or auction. They know the best bidding tactics, and don't get caught up in the emotion that makes some buyers bid way over their intended limit. This can save you tens or even hundreds of thousands of dollars, as well as avoiding stress and saving time.
Mr Edge says his clients are often surprised how much lower they are able to negotiate a purchase price, compared to the figure they believed would have been possible if they did the negotiating themselves.
To discover more on how a buyer’s agent can help grow your property portfolio, or help you get one started, visit the link below.