There are so many property “advisors” and buyers’ agents out there, how do I know which ones to trust?
We’ll cover this question in today's Q&A podcast with Brett Warren, national director at Metropole.
Whether you are just starting out and looking for guidance, or you have been investing for a while and want to take your skills to the next level, this week’s podcast is for you.
Janene left the following question on our website:
Thanks for the great podcast, Michael – I’ve learned a lot from you and want to take the next step – but I’m confused as I’ve spoken to a few advisors and they gave me very different messages, while others wouldn’t give me any advice until I paid them – SO my question is- how do I find an advisor I can trust?
There are different groups who will give you advice:
- Real estate agents – represent the vendor.
- Project marketers – represent the developer.
- Marketers who pretend to be property mentors or buyers' agents but really represent the developer
- Mortgage brokers, accountants, and financial planners – who have an affiliation with project developers and make recommendations to them and receive a (hefty) commission
- Buyer’s agents – an important part of the equation, but they only make money if you use their services to “buy” a property and they will usually only recommend you buy a property in their “patch”.
- In the last few years, a whole swag of new buyers’ agents has come to the market. These are well-meaning and enthusiastic but are amateurs with no perspective having never invested in times like this. However, anything they did in 2020 and 21 made them look good (like, anyone else and most people don’t know how to judge the quality and experience of buyers’ agents they approach
- Property Strategists – interestingly Metropole was the first company in Australia to offer strategic property advice and plans – we started helping clients back in 2000.
- Lots of people call themselves strategists but don’t really give holistic advice – they give so-called advice to “justify” that clients use their buyer’s agency
There is a well know buyer’s agent that has started a Buyers Agents Academy and his business plan is to sell courses to people interested in becoming buyers’ agents.
There is nothing wrong with that in itself, but there are some real concerns experienced buyers’ agents have:
- It’s churning out a group of enthusiastic amateurs alluring them with promises of big incomes helping others buy property and you don’t really need experience- just enthusiasm
- It teaches them to market themselves as professionals
- Not a scam but enthusiastic amateurs – who often don’t know what they don’t know but lure in clients who don’t know how to choose a buyer’s agent.
How qualified are they?
Know that the property industry isn’t regulated, which means you can become a buyer’s agent after doing a 4-day real estate licensing course.
Pro-Tip: Watch out for the selling agents ‘assistants’ who call themselves ‘Buyers Agents’ (clever little things).
At the end of the day, they’re still a sales assistant and their job is to convince you to buy whatever it is their agency is selling.
What industry associations do they have?
Are they a member of the REIQ, REIV, REINSW?
Are they a member of REBAA – Real Estate Buyers Agents Association, which is the national buyer’s agents association?
How long have they been in the industry?
I don’t mean how long they have been a buyer’s agent, although that’s a good starting point – and we all have to start somewhere.
But how deep is their knowledge of the real estate property market?
How many times have they tried, failed, and then tried again?
How long have they been refining their negotiation skills?
Do they have the skills and expertise to deliver what they promise?
The proof is in past performance.
Ask if you can talk to some of their past and present clients.
Check their Google reviews.
Do they specialize in the area you’re looking to buy in?
Or do they claim to specialize everywhere? This is such a biggie that is so often overlooked.
How established are their networks?
A good buyer agent won’t just have an intimate knowledge of the local real estate market.
He’ll have a deep connection with a large majority of selling agents, which will open you up to more opportunities just coming onto the real estate market.
Links and Resources
Get a bundle of eBooks and reports = www.PodcastBonus.com.au
Some of our favourite quotes from the show:
“Free advice that leads you down the wrong path doesn’t really work.” – Michael Yardney
“We have for years thought it was important to regulate the property industry.” – Michael Yardney
“The very rich think and plan very far into the future.” – Michael Yardney
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