Whether it’s your next home or an investment, buying a property is one of the largest and most important purchases you will ever make.
It’s paramount then that it is a sensible, smart and well-researched purchase.
This is where a buyer’s agent can help to ensure you make the best decision by bringing their expertise and levelling the playing field.
What is a buyer’s agent?
Buyer’s agents are licensed property professionals, just like selling agents.
But, unlike a selling agent who is driven to get the best possible result for the seller, buyer’s agents represent investors, home buyers and developers when they are purchasing their properties.
This means a buyer’s agent works exclusively for the buyer, whereas the selling agent works for and is obliged to get the best deal for the seller.
Why should I use a buyer’s agent?
A buyer’s agent will save you time, money and stress by helping you to find the best property for you at the best price and under the best terms.
Here’s a list of what a good buyer’s agent can do for you:
- Research, negotiate and acquire property on your behalf
- Research and assess the real market value of properties to help you make the best-informed buying decision
- Save your time, money and stress by sourcing the most suitable properties in a timely manner. This includes sourcing investment properties in the right location using knowledge of what areas and properties will outperform market averages.
- Ensure you don’t pay too much in the auction or negotiation process
- Help investors build their property portfolio fast and safely
- Acting in a confidential manner and in the buyer’s best interest at all times.
How to choose the best buyer’s agent
Buyer’s agents are relatively easy to come across, but finding a good one is the tricky part.
Warning: Not all buyer’s agents are the same and choosing the wrong one could cost you a fortune.
So how do you choose the best one?
Research, research, research and then ask the right questions in order to sort an A-grade buyer’s agent from a rather average one.
Great, so what questions should I ask a buyer’s agent?
1. Are you a fully-licensed real estate agent?
Be wary of hiring someone who doesn’t hold a real estate license for the state they’re working in.
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It can be tempting to hire a particular buyer’s agent solely based on their fees, but this is not a good idea.
If they provide great service and real added value to their clients their reputation and recommendations should speak for themselves instead.
2. How long have you been operating for?
There are many new young buyers’ agents in the market. While they often have the best intentions and enthusiasm, they haven’t got the benefit of experience.
They just don’t have the perspective that money can’t buy.
Don’t risk putting what could be one of the largest purchases in your life in the hands of somebody who hasn’t had the years of experience necessary to investigate and negotiate on your behalf.
Given property cycles generally tend to run for 7-10 years, as a general rule of thumb it would be wise to engage with an experienced and professional buyer’s agent who has been in the market long enough to experience both the ups and downs.
3. Do you have current professional indemnity insurance?
If something goes wrong with your property purchase you will have absolutely no recourse if your buyer’s agent is not appropriately insured.
This is one of the most important questions to ask during the process of finding a buyer’s agent.
4. Are you an independent and dedicated buyer’s agent?
It’s important to clarify whether the buyer’s agent is a division of a regular real estate agency or a solo person working from home – neither of these are preferable.
A so-called “buyer’s agent” will only be able to offer the highest standard of service if they are a dedicated professional who is focused solely on the process of searching and negotiation, without any conflicts of interest.
5. Do you specialise in home buying or property investment?
Expertise and strategy for home buying is one thing, but the experience and understanding needed for aiding property investment purchases is something else entirely.
If you’re an investor, it is critical that you make sure your buyer’s agent has a proven track record and experience in purchasing property as an investment.
Likewise, if it’s the purchase of your next home you want help with, make sure your buyer’s agent fully understands your needs, including location, home specifics and importantly, your financial situation.
6. Can you provide a reputable team of professionals to help me make a more informed investment decision?
Does the buyer’s agent have a proven team of solicitors, accountants, property managers, builders and pest inspectors to ensure you buy the right properties and maximise your investment returns?
After all, especially in the current market, you need more than just a buyer’s agent to make the best-informed choice.
Therefore it makes sense, when choosing a buyer’s agent, to look for one with good industry connections who is able to pull on that knowledge when needed because it’ll save you both time and money.
8. Do you have access to “silent sales”?
It is imperative that your buyer’s agent has spent years cultivating excellent personal relationships with real estate agents in the area you are planning your purchase.
That way, as soon as the properties come up for sale, you’ll be notified even before the general public – most of these properties are sold before they’re even advertised.
At Metropole, our buyer’s agents have access to many properties which never even hit the public market or listed online so our clients have the opportunity to access them first.
10. Can you help me buy property interstate?
A buyer’s agent can be licensed in one state but not another but may still act for purchasers of property interstate.
But you’ll still need to ensure that they have the relevant experience and qualifications to do so.
Not all buyer’s agents are equal
While a buyer’s agent can be an exceptionally valuable tool to have, like with any other profession in Australia, the level of service provided can vary dramatically.
To avoid getting caught up with a substandard buyer’s agent, you’ll need to consider the following points:
- While a buyer’s agent has a critical role in the purchase of the property, many are simply order takers. But at Metropole, our buyer’s agents implement the strategic plan our property strategist will custom build for you.
- Buyer’s agents can have a vested interest in recommending property in the territory they know, especially if they aren’t able to facilitate interstate transactions.
- As I previously mentioned, there are many new young buyers’ agents in the market. While they often have the best intentions and enthusiasm, without the right experience, qualifications and client base, they present too much risk. To be blunt – they’re enthusiastic amateurs.
- The phrase “you get what you pay for” is also unsurprisingly applicable to buyer’s agents. You will always find a cheaper buyer’s agent but be wary that the price may reflect competence and experience.
- In today’s changing market, in order to buy a property which outperforms the averages you need a team of advisors, not just a buyer’s agent. A team could include but is not restricted to, a property strategist and also those able to provide holistic wealth advice on things such as finance, tax, strategy and financial planning.
At Metropole, we have experienced, qualified and professional buyer’s agents supported by a full complement of real estate and building professionals and access to the whole range of holistic wealth advice professionals to ensure you’re making the best financial decision for you.
Now is the time to take action and set yourself for the opportunities that will present themselves in property this year.
If you’re wondering how to take advantage of the new property cycle you can trust the team at Metropole to provide you with direction, guidance and results.
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.
In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3.5 Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.