I read an article in the news last week by Sally Petty and this article lead me to question; has the term Buyers Agent become a dirty word?
In this article, the peak body for Buyers Advocates REBAA were ripping into unethical Buyers Agents. It was alarming to read that some Buyers Agents in the marketplace were charging 50% of their fee upfront and providing a substandard service once you were locked in.
Quite frankly, it was only a matter of time before the snakes came out to tarnish our industry and “Buyers Agents” became a dirty word. (sigh)
Let me be clear! You do not need a Buyers Agent to look for properties on the internet and take you to auction every weekend, only to miss out. There is no value proposition in this service.
However, a great Buyers Agent can find you opportunities you cannot find yourself and complete a range of due diligence to establish value. They will ensure the asset stacks up, together with a full negotiation strategy to ensure you are in the box seat to buy the property at the right price. It takes enormous skill and experience to achieve a successful outcome.
So…. How do you find the right Buyers Agent?
Securing the right Buyers Agent is worth every cent and more! You need to ask the right questions and consider the following:
- Buyers Agent- Who will you be working with?
Often when you have your first meeting with a Buyers Agency you will be speaking with a senior representative. However, in most circumstances this is not who you will be assigned to and often you will be past to a Junior. (not ideal) - Experience- Okay; so, you have established who you will be working with. What is their experience? A minimum of 10 year’s experience is a must. If you really want to deep dive into this then, a background in real estate sales is terrific as they know how Real E
- Examples- Ask you Buyers Agent to provide examples of other properties they have recently secured. Don’t get too caught up in the location as an experienced Buyers Agent can negotiate and source property in any suburb.
- Testimonials- It doesn’t hurt to ask for some testimonials or even ask to speak with one or two of their clients to gain feedback on their experience. Naturally, your Buyers Agent will require written permission from their client however, this is not hard to get given most happy customers are delighted to share their experience.
- Process- Find out as much information about their process to ensure you are covered during the purchase and after settlement.
- Active Clients- How many clients are they working with at one time? This is extremely important as a Buyers Agent should not be working with dozens of clients at one time. This begs the question, what service are you going to receive?
- Off Market Property- “Off Market Property” is often a misused term. Have you ever been told by a Real Estate Agent to come along to view an off-market property; only to find 5 other buyers there? This is not a true “off market property” if the Agent has contacted their entire database with the same opportunity. A true off market property is an opportunity that has been offered to your Buyers Agent exclusively, meaning there is no competition. (side note; highly unlikely to be offered to a junior) These opportunities will give your Buyers Agent full control to negotiate the purchase in your favour.
- Auctions- What is your Buyers Agents view on this process? An experienced Buyers Agent shouldn’t need to attend auctions as their skill set should have your securing the property either before Auction or off market. On the rare occasion they may find your dream home or perfect investment, which must go to auction however, this should not be the case for every property you are presented. In the event you must go to Auction then ask what strategies and techniques your Buyers Agent uses to ensure you are successful.
Follow the above and you should find the diamond in the rough.
Shannon Koetsveld
Director/ Property Strategist
Property Platform
www.propertyplatform.net.au