Are you one of the many people turning to a buyer’s agent for an edge in the current property market?
With Fear Of Missing Out creeping in, many buyers are choosing not to get mad but to get even and are turning to a professional for help.
They want to engage someone to work for them, to be on their side, and to finally buy that investment property or home.
The endless roller coaster of weekends spent at open homes only to continually miss out is wearing thin.
People want their precious time and importantly, weekends back.
It is certainly something we are coming across more and more lately.
But after an initial discussion, our clients’ expectations of what it is they want can shift.
It can almost be a light bulb moment as their frustration and concern diminish.
So here are my thoughts….
Quite often the original expectations of our clients are quite similar.
They may be time-poor and are looking for someone who can do all the leg work, whether it be the inspections or the research component.
They also want someone who can show them off-market and pre-market opportunities, above and beyond what they can find on the usual websites.
Short of wanting a bargain, most just want a good property at a fair price without paying emotionally inflated prices.
Overall, they want someone who they can trust and who acts with honesty and integrity and in their best interests.
In my experience, while important, these are all very superficial reasons.
It is also why you will see almost every buyer’s agent marketing these key points, in an attempt to win you over.
These reasons should be the absolute bare minimum of what you will get from your Buyer’s agent.
They are a given.
But in reality, you want more.
You deserve more …… right?
I would encourage you to dig a little deeper to understand what it is you really want.
You will find that while these superficial reasons are important, they are just the tip of the iceberg.
What you want more than anything is a pathway to get you from the here and now, to your long-term goal as quickly and safely as possible.
To do this you are going to require low risk, combined with above average, “wealth-producing” rates of return.
This is not something the majority of Buyers Agents will be able to help you with.
There are a few reasons, but you just can’t beat experience and perspective.
It starts with documenting a strategic approach to your goals using a proven framework and not with property or location.
And then you need a specialist to select the best suburbs and to lower the risks by focusing on the best streets within those best suburbs.
As building wealth is a result of accumulating properties, the right property for you is the one that gets you into your next property the fastest.
Many investors target cash flow or tax and depreciation benefits, but these are merely outcomes that can be adjusted in the initial strategy process.
In most cases, the fastest way to get your next property will be from capital appreciation and equity rather than cash flow or savings.
This is even more so in a rising market like we are currently experiencing, as you cannot save fast enough compared to market rises.
So above-average growth is critical.
- Also read:What makes an A-grade property?
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- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Heat comes out of the housing market as values across Melbourne dip and Sydney slows | Corelogic Home Value Index
Some of our clients initially felt the same way, but here are some of those deeper results we were able to achieve for them.
We purchased this humble property in Tarragindi back in 2018 for our client for $740,000.
I remember it well, as we managed to secure it prior to the first open home due to a relationship with the selling agent.
It ticked all the boxes for our investment-grade fundamentals and was situated in a quiet, elevated street.
The suburb analysis from CoreLogic shows that over the last 5 years, the average change in house prices in this suburb has been around 27%.
I recently received a text message from our client with an update on his property.
He has been looking to refinance and this required a valuation of the property we had purchased for him.
Incredibly, the valuation came back at $1,200,000 – a gain of 62% over the three years.
Not only was he now able to afford a second purchase, but his budget was far more than he would have hoped for.
Had he bought an average property in an average location and he may not have had the capacity to buy again and continue to build his wealth.
I purchased this property in Everton Park for one of my clients back in 2011.
This client was hoping to retire in a decade and wanted to get his money working harder for him over the last decade of his working life.
He paid $480,000 back in 2011 and recently approached me in the hope of using our Vendor Advocacy services to help him to sell and achieve the best price for the property.
According to Corelogic, over the last 10 years, this suburb has performed at around 3.1% per annum.
At the annual average compounding rate of 3.1% per annum, an average property that was purchased for $480,000 would sell for $651,000 a decade later.
The property went on the market and received many, multiple offers, eventually going on to sell for $881,000.
We outperformed the market giving our client additional funds for his retirement in the order of $230,000 above what an average property would have achieved.
As you can imagine, our client was very happy with the outcome and could now head into retirement with a greater level of security and comfort.
A mixture of frustration and disappointment has many people turning to a Buyer’s Agent to gain an edge in a difficult market.
Most feel the same, perhaps they want their weekends back, want access to a broader range of properties, and want someone to work for them.
I know this, as our clients often feel the same way to start with.
But after our initial discussion, they often find that they want more than just a buyer’s agent to assist them with a transaction.
They soon want more than the initial benefits and understand there is a much bigger picture.
They are wanting a path to a longer-term goal and need to get this purchase right.
To grow their wealth, they will need assets that appreciate above the average with very low risk.
At Metropole, this is what we specialize in, helping our clients grow longer-term, inter-generational wealth.
And that’s really what you really want- isn’t it?