Choosing the right buyers’ agent
Choosing the right buyers’ agent…
Mankind’s basic need for shelter has now become a very competitive space. If you haven’t entered the market for a while or are just starting a property search you may consider using a buyer’s agent. In countries such as Canada most buyers only look at property with a buyer’s agent but in Sydney it is still a growing industry.
According to the SMH the population in Sydney is set to top 5 million by next year, this includes the Central Coast and Blue Mountains. With this kind of growth comes increased need for housing and buyers agents.
This industry is a growing one with a low barrier to entry. Whether or not you are an owner-occupier or an investor deciding to use a buyer’s agent can assist you to make a better decision, provided you use the right one of course! With so many new buyer’s agents in the market place it is extremely important that you choose the right one.
Choosing a good buyer’s agent is like choosing a good financial planner.
Choosing a good buyer’s agent is like choosing a good financial planner. The good ones will have your best interests at heart and should only be paid by you. Beware the “buyer’s agents” that are paid by developers. These “buyer’s agents” are not really buyer’s agents they are property spruikers and sell off the plan development.
ARE THEY A LICENSED REAL ESTATE AGENT?
Firstly make sure that your buyer’s agent is a licensed real estate agent. All licensed real estate agents have to adhere to the Property, Stock and Agents ACT 2002 (NSW). This Act is quite lengthy but includes points such as acting in the best interest of your client and not colluding on deals. Once you are happy with their credentials you may move onto the other important aspects like experience.
HOW LONG HAVE THEY BEEN AROUND?
Experience is essential when choosing a buyer’s agent. It is even better if they have been a selling agent before. This ensures that you are not only getting the experience but you are also getting a level of skill. I would look for at least 10 years experience in the industry.
MATURITY IS KEY
Lets face it, this is one of the biggest decisions of your life and you should be able to express your fears and your wishes openly with your buyer’s agent. Maturity in a buyer’s agent is also extremely important. This is a trusted relationship and one that you will rely on so make sure you really feel comfortable with this person.
SPEAK TO THEIR PAST CLIENTS
Always ask for testimonials. You may see some listed on their website. A good buyer’s agent will give you phone numbers of their past clients. This is a fantastic quality as it shows a level of transparency. Being able to speak to people that have used their services before is invaluable.
HOW CONNECTED ARE THEY and HOW DOES THEIR BUSINESS WORK?
Finding a connected buyers agent is extremely important for a number of reasons. Sourcing off market properties and getting through properties before they hit the market is imperative. A quality buyer’s agent will be immersed in what they do and they will know the area and the agents like the back of their hand. This information is key for negotiating. It is difficult to qualify so ring some local agents and see whom they are recommending.
Large agencies may appear to be attractive on the outside but remember that looks can be deceiving. Quite often the larger agencies have competing briefs so you are actually competing within the same company to buy your beloved property. Going with an operator that is smaller means that they are agile and can move swiftly and are not competing against buyers agents in their own team.
Pricing and knowing a market forms the foundation of being able to make better and quicker decisions. This is at the core of being an excellent buyer’s agent. Ask your prospective buyer’s agent how they price property? What is their process? If they just go off Price FINDER Or RPdata alarm bells should be ringing. A good buyer’s agent should be able to price property effectively and deliver this information to you.
WHAT IS THEIR TRACK RECORD?
When you hear an experienced buyer’s agent speak they should tell stories of purchases that they have made. Ask them all sorts of questions like “what was your best purchase and why? Or, “How do you deal with multiple buyers in an auction campaign when buying prior?” With these kind of questions you will surely hear their level of experience.
COMMISSION, ISNT THAT FOR SELLING AGENTS?
According to Domain.com.au, buyer’s agents charge between 1-2% of a purchase price and are calling it commission. Always ask the question “Why would I be paying commission if you are saving me money? “And wait for the response. I think it is imperative that everything should make sense and make you feel comfortable.
In conclusion, the relationship between you and your buyer’s agent should be one built on trust. Make sure they know their stuff, have great experience and are very connected before you sign up as this will ensure that your outcome is much more favourable.