The couple wanted to make sure that they received their money’s worth with the best possible deals available in the property market. Indeed, the assistance a buyer’s agent brings to the table is undeniably invaluable.
Although West and Sutcliffe won’t reveal (understandably!) the names of their A-lister clients, both have been champions for celebrities on the look-out for great property deals in the Australia market —perhaps celebrities like Hugh Jackman, Cate Blanchett and Nicole Kidman!
However, at first, he was unsure of using a buyer’s agent. In fact, in an article published on the Australian Financial Review, he explained this hesitation.
He says that he’s used buyer’s agents for two of his property purchases. And thanks to his agent, he’s saved a total of $250,000 that he can put towards other investments. (Isn’t that great? I mean, that is awesome for him.)
A great buyer’s agent hits the nail on the head every time and will help you to build a strong portfolio—and, of course, help you find that ideal property you’ve been searching for!
If only you have somebody in your corner who’d fight for your interests, instead of those of the seller on whatever property you’re looking to buy. Well, that is exactly what a buyer’s agent does.
Commercial properties offer different advantages to residential ones. And both also offer their own unique challenges to an investor.
He noted that he had no idea what the market looked for when it came to his property. He just assumed that such an attractive commercial space would attract tenants.
So, the end result for Gino was that he had an expensive failure on his hands. And that’s the exact situation that you want to avoid.
Residential buyer’s agents or sometimes called a ‘buyers advocate’ have their strong A-game in looking for properties that are designed for people to live in.
Simply put, commercial buyer’s agents research properties based on a different set of criteria to that of residential buyer’s agents.
A commercial buyer’s agent chooses to specialise in a market for your benefit. And that means they provide more accurate advice within that niche when compared to more generic agents.
Commercial investors usually have a smaller pool of potential tenants to choose from. Furthermore, they need to purchase a property based on the demands of the local area.
Second, agents differ in terms of the payment structures. Some work on fixed fees, whereas others work on a commission-based model or a mix of both. And each of these models has its pros and cons.
With a fixed fee model, you pay a set amount of money for a specific service.
Now, with this model, the agent will charge a percentage fee, typically based on the final property purchase price. That means that you don’t have to pay as much money for the agent upfront.
In this mixed model, however, you have a more flexible payment plan with your buyer’s agent while getting the same quality service you’ve paid for.
No matter which model you choose, you’re surely going to see that it’s worth using a buyer’s agent. (And I’m saying that based on my own experience.)
Alongside his partner, Gabi, he threw himself into research mode. And over time, he came up with a formula for finding investment properties that perform amazingly.
They recommend that all investors look for the Holy TrinityTM when it comes to property:
This move equips buyers (like you!) with the tools needed to find suitable properties for themselves.
Let’s look at this important fact: Anybody who chooses to buy an investment property must accept that they’re taking on a risk. So, now the goal is to minimise that risk as much as possible so you stand the best chance of success.
As a very successful real estate buyer’s agent and founder of Your Property Your Wealth, Daniel puts importance in educating his clients and thus helping them limit their risk in their property journey.
As you can see,using the right buyer’s agent will help educate you. And you’ll receive the best of both worlds of coaching and mentoring.
A good buyer’s agent will draw from their own experience to help buyers avoid common pitfalls. They’ll also help buyers to better understand their own strategies and the types of property that fit their risk profile.
As such, as a buyer, you can expect to undergo a fairly extensive information-gathering process.
Now, the buyer’s agent wants to know about your strategy or if you don’t have one they will help you create it. They’ll talk to you about the local rental markets and what they mean for you as an investor.
In fact, Brian McNicol, the CEO of the buyer’s agency, aptly named ‘Commercial Property’, has always valued this role of the buyer’s agent. After collecting information from the buyer, he gathers market data that is relevant for that buyer’s goals and strategies.
Now, imagine this process multiplied over hundreds of properties and you get an idea of the scale of the work involved. You get the idea.
That means that they’re not thinking about landing a commission from a seller while they work with you.
A buyer’s agent like Chris can help you ease into the commercial space through their work. That ensures you don’t make the same mistakes that others who try to transition alone will make. And along the way, of course, they’ll work in helping you locate suitable properties to invest in or purchase.
Now, to explain this next role of a buyer’s agent, let’s go back to Simon Loo—particularly into what he does to spot patterns in the market.
And any good buyer’s agent should be able to spot patterns and trends in the market, especially when working with investors. And how Simon does that is through research and attention to detail.
‘There’s a lot of reasons why people need to sell properties urgently. So, that’s when people like me—for myself and as a buyer’s agent—I get exposed to a lot of these types of deals, and that’s where I come in.
And, depending on the price, I do my own research based on the last three months of what’s sold in the same suburb in the surrounding streets that are of a three-bedroom, one-bathroom, one-garage nature.
You’re probably getting a decent deal if there’s not too much issues with the house...You’ve just got to look at it as it is and what the comparables are.’
Indeed, capable buyer’s agents like Simon makes sure to look at the market trends and assess patterns. They evaluate them and see if potential properties you are eyeing to buy are—
suitable for your portfolio
aligned with your long-term investment goals
You have to remember: The property market isn’t static.
On a macro level, the property market has its ups and downs over time. When you boil down to the micro level, you will see that every suburb has its own localised market. Examining these markets helps you to identify patterns that you can leverage when buying.
But it also takes a lot of time to gather that data.
Buyer’s agents like Simon Loo handle all of this work for you. That means they can provide guidance on a property’s potential performance, as well as its current one!
For buyer’s agents, creating custom deals for clients
means finding manufactured equity deals for them.
It may mean buying existing land where you can build duplexes or has subdivisions potential.
Or, it could involve finding properties that have the potential to become something different with the right investor.
Sixty per cent of people—that’s how many respondents told the Real Estate Buyers Agents Association of Australia (REBAA) that overpaying at an auction is their biggest fear.
Most importantly, they go in knowing exactly what you can afford to spend.
Yes, letting emotions run amok (albeit unintentionally) not only in auction biddings but also in negotiating and searching for the best deals: It’s a scary thought, especially if you’re working on a tight budget. Losing control of your emotions could cost you tens of thousands of dollars.
However, all that changed when David worked with a sales agent named Jeff. Instead of pressuring him into a deal, Jeff helped David to find the perfect property for his needs. Jeff took him to different properties to consider.
So, don’t forget: A great buyer’s agent aims to put the ball in the buyer’s court. They’ll help you to see when a seller wants too much for a property. Plus, they’ll negotiate on your behalf to lower that asking price. This case often means that you land a property for below its market value. (Cool, right?)
While the fees you’ll pay to work with a buyer’s agent may seem expensive, you need to consider the value they bring.
While real estate agents help you get the buyers you need for the property you’re selling, buyer’s agents work for you in helping you search for and buy the ideal property according to your goals and needs.
Indeed, a great buyer’s agent can make all of the difference when you’re searching for a property!
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