Buyers’ agents are becoming increasingly popular so there’s plenty of talk about the benefits that they can bring to building an investment portfolio.
Particularly now that the proeprty cycle have moved into the next phase and you can’t count on the market to do the heavy lifting.
So what should you expect from a buyers’ agent and what value do they bring to the equation?
For many people, buying a property is probably one of the biggest transactions they’ll make.
So, searching for the right property that suits your needs, whether as an investor or owner-occupier, can be one of the most stressful processes you can undertake.
Aside from the hours spent searching and finding the time to attend inspections, there’s the intensity of bidding at auction and the anxiety of securing finance.
For those looking for a helping hand and guidance, a buyers’ advocate or buyers’ agent (depending on which market you’re based in) may be worth considering.
There’s no doubt that the popularity of buyers’ agents has increased over the past few years and for good reason.
A buyers’ agent can represent the needs of the buyer, devise a search plan within a set criteria, and bid at auction or place offers on behalf of the buyer.
The responsibility of a buyer’s agent is to take away the daily grind of searching for property from the buyer.
They’ll assume the duties to search for your ideal property, essentially doing all the leg work for you, so what’s not to love?
As well as doing the hard graft of searching for the best property to suit your individual circumstances, buyers’ agents also bring experience, expertise and vital networks.
Networks can be invaluable as buyers’ agents may be able to source off-market listings.
Buyers’ agents offer a variety of services which can include the full service of searching, assessing, negotiating and purchasing a property to providing specific expertise such as representing you at auction.
The key elements of buyers’ agent services can include:
- Developing a clear criteria based on your requirements, which will include budget and size of the property, but can also include proximity to amenities or even the desire to subdivide at some stage.
- Searching listed properties through databases as well as sourcing off-market opportunities through professional networks.
- Submitting a number of options or a specific recommendation to you for your consideration.
- Researching the surrounding area to discover any possible developments that may impact the capital growth of the property in the future, such as housing estates or apartment developments.
- Determining comparative sales in the area, or similar areas, to gain a better understanding of the property’s value.
- If the agent feels their research points to a potential purchase they’ll then attend an inspection and can also arrange building and pest inspections to better understand the structural quality of the property.
- Some buyers’ agents can also act as an adviser on how to enhance a property including renovation potential and how to avoid over-capitalisation.
- If required, the agent can represent you at auction and bid on your behalf or they can liaise and negotiate with the sales agent to present your private treaty offer.
- Knowing when to walk away from a negotiation is just as important and a buyers’ agent will know if a vendor is asking too much for a property and is being inflexible or unrealistic.
Want to know more?
At this stage of the property cycle, where not all properties will increase in value strongly, correct property selection is critical for property invetsors, so 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.
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