If you are looking to engage a buyer’s agent, it pays to do your research.
Investors must be cautious of the motivations of the person they choose to act on their behalf.
A buyer’s agent should only be paid by one party – the investor, they should lend their expertise to the benefit of the investor in the transaction, and they must be unbiased.
Spending time to carefully select your buyer’s agent will consistently lead to better outcomes and avoid the potential to emotionally over-pay or invest in the wrong type of property, at the wrong price, in the wrong location.
Your most precious asset is your time.
Selecting the right buyer’s agent should protect your most precious asset – your time.
As a start, here are three types of buyer’s agents that you should avoid.
Fly in Fly out
There is a growing trend for people to appoint out of area buyer’s agents – who will travel to the destination hot spot and buy on your behalf.
They will save you inspection and negotiation time, but will fail in the most important rule of property – location.
An outsider will never know the local secrets that are key to forward-thinking investors.
I see serious risk with engaging an agent in this way as it reminds me too much of hot-spotting and could mean that the so-called buyer’s agent might have a slow market and is looking to exploit a rising market elsewhere.
Remember, if you are an expert at everything you are an expert at nothing!
Junior Agents that run buyers
Real estate firms often look to increase a successful agent’s earnings by engaging a junior agent to attend their open homes and field offers on their behalf.
It is sensible to remember that in traditional real estate emphasis is given to the sellers; after all, if you control the listing you control the sale.
Do not be duped into believing these so called ‘buyer’s agents’ are working for you.
Their ultimate objective is to drive up the selling price by creating a competitive environment, whether through private treaty or auction, and their advice will be restricted to their own listings or their agency’s.
A true buyer’s agent has access to every property on the market, including off market sales (for more information on off market sales click here).
Buyer’s agents that have a stock list
Developers will engage sellers whose primary purpose is to sell off-the-plan stock.
They will try to disguise this with misguided investment advice to promote sales of their stock and earn a large commission from the developers, which can often be undisclosed.
Their advice is compromised through bias, as it will be skewed to promote only the lots they are trying to sell and the investor will be the one to lose out financially.
WHAT CAN YOU DO IN 2018?
As signs point to softer growth conditions for Australian property over the coming months, independent professional advice and careful consideration will be as important as ever in navigating Australia’s varied market conditions.
If you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
NEED HELP LISTENING TO MICHAEL YARDNEY'S PODCAST FROM YOUR PHONE OR TABLET?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.