Articles

Buyers Agents -Time and Money

Are you sick of running from one open house to the next every weekend? Is your solicitor sick of reviewing Contracts week after week just for you to be out bid at Auction? There is a solution and it could save you not only time but also money.

When you are looking to spend hundreds of thousands of dollars, consider using an expert. How often do you buy a property? Buyer’s Agents buy property every day. It is all they do.

 

What is a Buyer’s Agent?

Buyer’s Agents are licensed professionals who act on behalf of purchasers of property and can research, inspect, negotiate and finalise the deal when buying property. There are also Buyer’s Agents who locate rental properties.

Buyer’s Agents can work in a number of ways and can assist as much or as little as the buyer requires. They are used in both residential and commercial transactions. A Buyer’s Agent will either do everything on your behalf, hold your hand along the way, or advise you on your choices. The level of interaction is up to you

There are specialist Buyer’s Agents for investment property either locally, interstate or internationally. Some Buyer’s Agents specialise in buying your perfect home and others focus on finding sites for property developers.

There are Buyer’s Agents who research and discover the right property to generate certain levels of income and capital gains and Buyer’s Agents who analyse your requirements and educate you to make the right choices.

The key to finding the right Buyer’s Agent is deciding on what you want and where you want it.

A Buyer’s Agent who focuses on a particular area will have already done their homework many times over and knows the suburbs and all they have to offer.

If you want to be close to your family or certain services in the community, a Buyer’s Agent will take that into consideration and locate an affordable property in a location that you had not previously considered, yet satisfies your criteria.

 

Time management

Have you heard the rumours of the purchaser visiting 6-8 properties open for inspection every Saturday for the past six (6) months just to be out bid at auction?

Having a professional source the property to tick all your boxes can save hours, days, weeks, months of time that could be better spend with your family and friends.

Outsourcing the leg work makes perfect sense to anyone who is employed, has a family or is not able to physically be in three places at the one time. You also avoid all the harassing phone calls from Selling Agents who are trying to get you to raise your offer to commercially unviable limits.

Having the benefit of a professional negotiate your purchase price could save you hundreds of thousands of dollars. Not only by saving you petrol, but by knowing exactly what the property is worth and how to negotiate the best deal for you.

 

Strategies and negotiation

The most popular reason people have used Buyer’s Agents in the past is to bid on their behalf at auctions. As experienced professionals, they will stop bidding when the price exceeds commercial reality. Their emotions are not involved and they are focused on getting the best outcome for you.

Because Buyer’s Agents have considerable experience in negotiating, you will benefit from their skill and tactics, often paying less than what you would have if you had negotiated on your own behalf, saving money, time and stress.

With extensive knowledge on real estate strategy and tactical purchasing, a Buyer’s Agent can either find your perfect home, perfect investment or perfect development site. They can assist in structuring an investment portfolio to return a passive income and generate capital growth.

 

Off market transactions

Since Buyer’s Agents are buying properties every day, they are exposed to properties that are never advertised. Off-market transactions are negotiated between Selling Agents and Buyer’s Agents who work together on a regular basis.

Some vendors prefer to sell off market for privacy reasons and people like celebrities do not want open houses to avoid snooping fans to sticky beak through their homes.

If you miss out on a property that is similar to another about to come onto the market, the Buyer’s Agent may be contacted through a network of Agents who are focused on meeting specific client’s criteria and keep the Buyer’s Agent informed on the homes available in that criteria.

Real Estate Agents also prefer to deal with each other directly because they know that a buyer represented by a Buyer’s Agents is committed to buying in the near future and has focused on a specific set of requirements in a property they desire.

 

Cost

This varies from one Buyer’s Agent to another. Some offer a fixed fee depending on the level of service the buyer requires, others require an engagement fee and commission.

If you are purchasing for investment purposes, then the cost of engaging a Buyer’s Agent is generally tax deductable, if not initially, then when it comes to calculating Capital Gains Tax.

Some Buyer’s Agents guarantee their work and are certain they can make one of the most stressful experiences as painless as possible. When you are looking to buy, Selling Agents often use emotion to influence you to go to a higher price than you can realistically afford. Buyer’s Agents have a budget and work within the budget.

If the dream property is going to sell for half a million more than you can afford, they will honestly tell you and either you need to re-evaluate your finances or lower your expectations.

 

Property portfolio

Many Buyer’s Agents are used to create a portfolio of properties to generate an income stream to allow for an early retirement or to fund life styles that are not affordable on salary alone. They conduct due diligence and forecast cash flow and tax breaks.

Unless you have years of experience buying, selling and renting out properties, it pays to use a Buyer’s Agent to create a custom property portfolio taking into consideration your goals, circumstances and personal preferences.

A balanced portfolio provides good capital growth and good rental income. Residential properties close to infrastructure, water and cities will always have a low vacancy rate. Research the planned development for the area. If a new shopping centre and train station are due to commence construction within the next few years, chances are the suburb will grow.

Depending on your situation, KREISSON can put you in touch with Buyer’s Agents who can find your perfect home or investment, take the stress out of buying and get you the best deal possible.