Armchair Buyers

I come across fascinating clients from time to time, some with amazing backgrounds and stories- from all walks of life. It's what makes my job, amongst other things, so interesting and not at all dull..... not to mention challenging at times :D

I was recently doing some marketing exercises at a workshop and one of them involved finding commonalities amongst our clients/customers ie: common traits, behaviour patterns, demographics etc. I found this quite a useful task in breaking down the types of home buyers and investors who use our services and ended up with a list of similarities in behaviour patterns.

When breaking them down further, it became obvious that the majority of buyers who come to us have already suffered (I use the word suffered rather than experienced as its more apt in this industry!) from either Information Overload or Analysis Paralysis or a healthy combination of both! Sure, it doesn't apply to all enquiries but the majority do come to us, after having searched endlessly (often for months and occasionally years) without success- most are frustrated to say the least. Some are jaded by their experiences, others have read wayyy too much info (no doubt on forums like this one!) and are completely confused about which way to go, how much to spend, what to buy, how to structure, who to borrow from etc etc, whilst there are those who are simply sick and tired of the whole process and wish for a professional to do the work for them instead.

Reasons vary but when I delve deeper and ask enquirers how long they've been searching, how many properties they've inspected, how many they've missed out on etc it never ceases to amaze me how many buyers never get off their office chair to physically inspect! One recent caller led me on, and had me believing he was practically a local expert in this suburb. Telling me he'd checked out hundreds of properties over the last few weeks, I expressed surprise that he had that much time on his hands given his busy IT job. When the truth emerged that he hadn't actually yet driven to the suburb :eek: naturally the conversation took a different turn :)

I'm so used to hearing from such armchair experts now that nothing really surprises me. Sure, the net has made us all closer and we become almost comfortable in thinking we really know a place from the safety of our PC screen, but I do encourage callers like this to at least get off their chairs, and waste a Saturday or two taking a drive before they make a decision on area. What can look good on the net ain't necessarily the same in real life. I'm sure all of you who have actually inspected after netsurfing can identify here!

Naturally absentee buyers have little choice, as they rely on our expertise and guidance (and lots of photos, reports, maps, charts etc) to select a property that suits, but really there's no excuse for buyers who live in the same state to come and take a look before making a decision on area. We've had the odd NSWelshman who is ok with buying sight unseen but they're usually seasoned investors who run the numbers and are very unemotionally unattached ;)

So, to all you armchair buyers out there who spend so much time on realestate and domain you've developed neck cramps and chair-ritis take a break, get some fresh air and go for a drive. You'll find a whole different world out there :D
 
Do you think these people are too lazy or too stupid?! They're obviously very trusting. I could never sink money into a property I hadn't inspected myself, whether it be an IP or for my PPOR - I wouldn't feel right not physically looking at a property myself. It would be like buying a car without taking it for a test drive. I suppose I'm lucky to have the time and even luckier to absolutely LOVE, not only researching, but inspecting property. Can I please have your job, Jacque ;)
 
Do you think these people are too lazy or too stupid?! They're obviously very trusting.

Quite the contrary. Most of our clients are actually very intelligent investors and home buyers who prefer to outsource for a range of benefits. And, yes of course they have to trust us. We are put in a high position of trust acting on their behalf, which I consider a great privilege. After all, it's often the largest financial investment of their lives.

I could never sink money into a property I hadn't inspected myself, whether it be an IP or for my PPOR - I wouldn't feel right not physically looking at a property myself. It would be like buying a car without taking it for a test drive.

That's fine, GBS (have abbreviated your name in the interests of faster typing :D) and buying sight unseen is not for everyone.

However, with technology making our world a much smaller and accessible place it's not that difficult for buyers to get an excellent overall and helicopter view of both the property, the surrounding streets and area from our research, reports and pics. As Murph points out, tools such as StreetView and Google Maps have made it so much easier. Aerial pics, on the ground 360 degree views and detailed internal and external photos, as well as CMA reports with comparable properties complete the story.

I suppose I'm lucky to have the time and even luckier to absolutely LOVE, not only researching, but inspecting property. Can I please have your job, Jacque ;)

Property hunting can be enjoyable but not 100% of the time. Trust me on this :D It's hard yakka, can be brain-draining and requires good organisation, determination and terrific patience at times. If, however, you feel you have what it takes (including a RE licence) investing/BA or sales experience and excellent communication drop me a line via my site. I may well soon be on the hunt for more proficient BA's to join us..... ;) :)
 
Do you think these people are too lazy or too stupid?! *snip

I don't think that either of those factors come into it. I'm looking at buying 2 properties at the moment site (sight?) unseen and feel totally comfortable with the whole process. Yes it does involve a level of trust in say, the building inspector, but then again I'm not a qualified builder so I don't expect myself to do a better job than the professional.

With technology these days you can visit the place without leaving your armchair and as long as the usual DD is done, personally, I don't see a problem with it.
 
They're obviously very trusting. I could never sink money into a property I hadn't inspected myself, whether it be an IP or for my PPOR - I wouldn't feel right not physically looking at a property myself. It would be like buying a car without taking it for a test drive.

gottabespotless - It is not about lazyness. I use a buyers agents for a variety of reasons.
Firstly - I am time short, so dont have time to inspect 100s of properties in order to pick out one or two gems. If I really want to inspect the property, the BA can do 99% of the leg work, pick out a couple of stand outs and I will go and visit them.
Second - I hate real estate agents. As a buyer they are not working in my interest (even as a seller they rarely work in the sellers best interest either). So the less I have to deal with them the better.
Thirdly - buying an investment property for me is not an emotional decision. It is not the house I am going to live in, so I dont really care - as long as the numbers are there. I dont want to fall in love with the property as it skews your judgement.
Lastly - not living in Australia means that I dont have 'feel' for the market. I dont know what is happening locally.

Yes, you need to trust your BA. It took me a long time to find my BA and to start with I was probably her worst nightmare. I made her complete all sorts of reports to justify why she excluded some properties and included others. If I would purposely pick properties which were not suitable off the web email her the link and say "what are your thoughts". Just to hear her tell me that its not suitable for x,y&z reasons. This confirmed to me that she was working in my best interest and not just telling me what she thought I wanted to hear (which is what a RE would do).
Over about 4 years I now trust her to buy property for me sight unseen. My last property I purchased I was on holidays and out of mobile range it was only after about 10days that I discovered I had purchased another property. It was a very relaxing purchasing experience but it has taken time, and yes involves trust.
She knows my financial position so knows what I can and cant afford.

I think that if you get to this level it opens up other purchasing opportunities because you can now buy properties outside of your normal comfort zone.

I dont think I would buy another property without using a BA - except for my PPOR.

Cheers
Blacky
 
I come across fascinating clients from time to time, some with amazing backgrounds and stories- from all walks of life. It's what makes my job, amongst other things, so interesting and not at all dull.....
Yep, life is never dull in real estate. I have come to realise that being a BA is not really about property - sure for an investor it involves property and the numbers - rental yields, CG trends and all that stuff. Of course if it is to be a PPOR, then who cares about rental vacancy rates? Its about feelings and memories and accommodating each family member's wants & needs, schools, friends and family.

This last point really came home to me the other day when I was doing a pre-settlement inspection on an older period style home, we'd purchased for a client. It was a deceased estate (the mum had passed way) and the adult children were selling. One of them left a note behind in the kitchen saying how they wished the new owners a very happy time in the property and hoped it gave them as many happy memories as they'd had there, growing up in the family home.

It was a touching moment.... for a while, and while I refected on the emotion behind the note, the reality hit me that we'd purchased this for an investor client and we were just going to turn it into a rental property - with no real memories for the new owners at all.

And I know from past experience, and I think Jacque has had it too, that we rarely disclose to a vendor that we act for an investor client in case they won't sell to us. They want someone to buy it as their home and love it like they did.

So it is a people business and we have to manage people's expectations and wants & needs...on both sides of the transaction. Many times vendors want to sell but want conditions to give them a safety net, like a 6 month rent back at lower than market rate etc so they have time to look for a new home. As BAs we spend long times negotiating these deals and liaising with solicitors to get the terms right, only to find when the contracts are exchanged, that they often don't need the rent back period at all - sometimes finding a new place within days.
 
So, to all you armchair buyers out there who spend so much time on realestate and domain you've developed neck cramps and chair-ritis take a break, get some fresh air and go for a drive. You'll find a whole different world out there :D

Its not just the ones that sit on re.com or domain either. Its the ones that only research on the internet, listen to RBA speeches, look at terms of trade and share prices etc and then declare to all and sundry that RE prices will go flat or fall until 20xx.

I went to an auction in rooms last night. Of the 12 properties up for sale, 3 had sold prior. Of the remaining 9, all - every last one - sold under the hammer that night. 100% clearance rate! Inner West.

On Saturdays I go to Opens and have to stand in line to get in. Then I get beaten (only occassionally for me, fortunately) to a good purchase, by an insanely high priced offer - and there have been many examples on here recently....and yet I come on here and see people saying sales are slow, prices falling, predictions of D&G all around.

And if I hold a contrary view (admittedly based on my narrow experience because that's where I choose to specialise), I get accused of being a property bull :cool:

Ah well - thems the breaks. :D Fortunately for those who ignored the D&G of the GFC and beyond, have gone on to make considerable CG and increased their wealth. At the same time, the armchair experts, discuss how it just won't last, wouldn't have happened without Govt. intervention, can't keep going because it is so unaffordable, want to go on a buyers strike, suggest you try another asset, warn of Portugal needing a bailout, RBA wanting to increase rates, pull out a chart to show credit is tightening, loosening, going south, getting easier, whatever zzzzzzzzzzzzzz :rolleyes:
 
Its not just the ones that sit on re.com or domain either. Its the ones that only research on the internet, listen to RBA speeches, look at terms of trade and share prices etc and then declare to all and sundry that RE prices will go flat or fall until 20xx.

I went to an auction in rooms last night. Of the 12 properties up for sale, 3 had sold prior. Of the remaining 9, all - every last one - sold under the hammer that night. 100% clearance rate! Inner West.

On Saturdays I go to Opens and have to stand in line to get in. Then I get beaten (only occassionally for me, fortunately) to a good purchase, by an insanely high priced offer - and there have been many examples on here recently....and yet I come on here and see people saying sales are slow, prices falling, predictions of D&G all around.

And if I hold a contrary view (admittedly based on my narrow experience because that's where I choose to specialise), I get accused of being a property bull :cool:

Ah well - thems the breaks. :D Fortunately for those who ignored the D&G of the GFC and beyond, have gone on to make considerable CG and increased their wealth. At the same time, the armchair experts, discuss how it just won't last, wouldn't have happened without Govt. intervention, can't keep going because it is so unaffordable, want to go on a buyers strike, suggest you try another asset, warn of Portugal needing a bailout, RBA wanting to increase rates, pull out a chart to show credit is tightening, loosening, going south, getting easier, whatever zzzzzzzzzzzzzz :rolleyes:

I think this is well said. That's the problem with the mass education in our society - too many smartasses who don't want to make a decision unless its 'efficient' or 'NPV positive'. But that's fine - we will all make money while they continue renting and bitching until they buy their first house in Point Cook when they're 40 years old for $1m! Hahaha
 
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