Benefits of a buyers agent?

[Shiv]

hi guys first post here and i have a few questions about a buyers agent. I'm a nurse and i work nightshift generally 48-60 hours a week and often on the weekends. I'm looking for a investment property in melbourne that i can negatively gear to offset my income (too much overtime). The problems i have are as follows

1.) It will be my first investment property so i'm a little info overloaded atm. so finding time to find out what i need to know and also look at property can be challenging.

2.) I generally work weekends, so getting up to head off to auctions is a problem.

I thought a way to solve these issues for my first investment property; so that i can purchase relatively soon and for a good price; might be to use a buyers agent.
At the moment all i can find online is actual buyers agent propaganda. I apologise if I'm covering old ground but a search on this site didnt give me at answers i was looking for so i thought i would start a new thread.

What i would like to know is would using a buyers agent be worthwhile? Does any1 have any good or bad experiences with a buyers agent? And could anyone reccomend an agent on the north side of melbourne.

PS. Awesome site lots of useful info, I'm slowly churning my way through it learning as i go.

 

[Rolf Latham]

Hi

And welcome

I think u have very much already answered ur own quesion and are manly looking for validation and perhaps an agent.

We have many clients that have bought this way and are most happy.

Time waits for no man or woman, so the biggest benefit for you in using an agent is excatly that, since you seem to not have the time to gather the info needed and to make a considered buying decision

ta
rolf

 

[Propertunity]

What i would like to know is would using a buyers agent be worthwhile?

Look for one who is a member of a professional organisation such as the Real Estate Institute in your state as well as say the Real Estate Buyers Agents Association http://www.rebaa.com.au/ whose members have to uphold to certain ethical standards and who must have PI insurance in case you are in the unfortunate position of having to make a claim against them.

Of course this is no guarantee, but at least it puts you ahead in sorting those BAs who are actively involved in the process of good agency practice.

Does any1 have any good or bad experiences with a buyers agent?

Try this thread: http://www.somersoft.com/forums/showthread.php?t=63200

And could anyone reccomend an agent on the north side of melbourne.

http://www.buyersagents.com.au/
Michael Ramsay

All the best with the property search

 

[redsquash]

i used a buyers agent in Melbourne and I think I gave him $1500 to start with.
After a few months he said he couldnt find anything of value ie everything was too expensive.He was prepared to give me my money back.

I was very impressed with his initiating the full refund. He was knowledgable professional and I was time poor returning to overseas .

I dont know how good his property predictions would be but the areas he showed me and the houses he wouldnt buy when I went with him made a lot of sense .
I would use him in a snap .
I then used a buyers agent in Adelaide and wouldnt use that person again.The property was ok/good but the communication and negotiating tactics were very unsatisfactory. Knowing Adelaide better now , I think a better property would not have been so hard to find.
My opinion only with no hard facts to support that opinion

 

[Shiv]

hi again guys thanks for the assitance in this matter will look into Michael Ramsay if i decide to head down that path.
P.S looked a bit harder and found some more threads on this matter

 

[Dazz]

uphold certain ethical standards

11.Not undertake specialised services for which they are not qualified or licensed and make it clear to the client that they are not a substitute for professional, legal or financial advice

Alan,


Acknowledging that none of this is legally binding - ethical standards never are - under point 11....can I ask....what exactly is a Buyers agent qualified to do, if they are prohibited from offering any professional / legal / financial advice when purchasing real estate ??


I would have summised, when laying buku $'s down to purchase real estate, it would be those 3 areas, professional / legal and financial advice would be the ones you'd be paying for....


If you are barred from any of that, what are you a substitute for ??

 

[wylie]

If you are barred from any of that, what are you a substitute for ??

Wouldn't a buyers agent be paid for the "time" he or she can put into a search when the purchaser has perhaps neither the time, nor inclination to do the searching themselves?

I think if I was wanting to buy in another city or state, I would use one, because of having no knowledge of good or bad streets or areas and my lack of local knowledge regarding prices.

 

[Propertunity]

I would have summised, when laying buku $'s down to purchase real estate, it would be those 3 areas, professional / legal and financial advice would be the ones you'd be paying for....

Dazz,
You'd have been wrong then summising that (as you know)
Legal advice: our lawyer / solicitor friends
Financial advice: financial planner / mortgage broker

If you are barred from any of that, what are you a substitute for ??

In really simplistic terms a BA is a substitue for the buyer themselves. In addition to doing research, DD, running around looking at properties, calling selling agents, making offers, etc., BAs are regularly given POA to sign contracts on the buyer's behalf too.

As for what a BA does (a Q which you did not ask, but one I submit an answer to here, just for clarity), see here:
http://www.propertunity.com.au/page/what_is_a_buyers_agent.html

 

[Dazz]

Make sure to hire a knowledgeable professional agent.

But how do you make sure ??

 

[chilliblue]

But how do you make sure ??

Buyers agents have to be a registered agent and qualified so firstly you should review their licence.

Then it should be a case and seeing if their can meet your needs just the same as PM.

 

[RightValue]

Buyers agents have to be a registered agent and qualified so firstly you should review their licence.

Then it should be a case and seeing if their can meet your needs just the same as PM.

Not in Victora (where the op is based and looking for a property) as far as I know. Please point me in the direction of the legislation that requires registration of buyers agents in Victoria .. if that is the case I may have to rethink one of my plans.

Are you talking from knowledge of all states or just one or two? Because Real Estate licencing etc is different from state to state.

cheers

RightValue

 

[Propertunity]

Not in Victora (where the op is based and looking for a property) as far as I know. Please point me in the direction of the legislation that requires registration of buyers agents in Victoria .. if that is the case I may have to rethink one of my plans.

Hi RV,

I'm pretty sure that BAs need to be licenced in Vic.

From your Consumer Affiars Vic website at:
http://www.consumer.vic.gov.au/CA25...censing+&+Regulation~&2=30-Estate+Agents~&3=~

Anyone who buys, sells, leases or manages real estate or a business on behalf of a vendor, landlord, purchaser or tenant must either hold an estate agent's licence or be employed by a licensed estate agent as an agent's representative.

 

[neK]

What i would like to know is would using a buyers agent be worthwhile? Does any1 have any good or bad experiences with a buyers agent? And could anyone reccomend an agent on the north side of melbourne.

You come on forums like this and ask. You then meet up with them and talk.

If the agent doesnt give you a good vibe, then dont use them.

Acknowledging that none of this is legally binding - ethical standards never are - under point 11....can I ask....what exactly is a Buyers agent qualified to do, if they are prohibited from offering any professional / legal / financial advice when purchasing real estate ??

I would have summised, when laying buku $'s down to purchase real estate, it would be those 3 areas, professional / legal and financial advice would be the ones you'd be paying for....

If you are barred from any of that, what are you a substitute for ??

A financial planner isnt going to do anything for you when buying a house.

Most will either
1. Steer you towards managed funds
2. Steer you towards off the plan purchases which they will receive a commission from.

The good ones (rare, and hard to fund, usually sourced from word of mouth) will actually plan out your cash flow to show you whether you can or cannot afford it and what you need to do in the future.

In really simplistic terms a BA is a substitue for the buyer themselves. In addition to doing research, DD, running around looking at properties, calling selling agents, making offers, etc., BAs are regularly given POA to sign contracts on the buyer's behalf too.

This is pretty much why I used Propertunity myself.

Real estate isnt my strength, so why not employ someone who excels at it? They know what to look at, they have a better chance of getting a straight answer out of the agent.

Why? Because a normal buyer will usually buy only one property from that agent. So the agent is there to try and get the most money of the buyer. A buyers agent on the other hand can buy multiple properties from the same agent, so it makes sense to have a good working relationship.

 

[Jacque]

From Dazz....
"I would have summised, when laying buku $'s down to purchase real estate..."

and

Dazz,
You'd have been wrong then summising that (as you know) ....

Hate to point it out as a (former teacher pedant) but neither of you are doing anything 'summising'...... surmising would be a better word I do believe

Anyway.... I digress....

Shiv,
I can second the recommendation of Michael Ramsay. Very experienced, knows his stuff and his market intimately. He's worth a try when you go to shortlist BA's.
As for what to look for, besides the relevant points that have already been raised already, ask for recent testimonials (phone references as well) and ensure whichever BA you choose is experienced in the areas you wish to buy in, as well as being a property investor themselves (this assists enormously especially if you're a renovator). Check out their licensing credentials via DFT and ensure they're appropriately insured for PI. Not all BA's are equal. Best of luck

 

[Propertunity]

Hate to point it out as a (former teacher pedant) but neither of you are doing anything 'summising'...... surmising would be a better word I do believe

Ouch!....touche`

 

[K_Raheja]

No one called me back from Michael ramsey

So ,I used Portfolio management services in Melbourne they seem good ( meaning they sounded knowledgable). Only time will tell how good they really were

I used a BA for my first IP.. more for getting some ideas and confidence and see how they operate.

Also this forum is awesome !

 

[Shiv]

Guys thanks for your comments on this topic, in the end i did go with Michael Ramsay Buyers agents and in specific Andrew Skubel who specialises in the north of melbourne.
The service was very professional and we were able to secure a property in the area i wanted at a price less that the vendor wanted by a margin more than enough to cover the buyers agent fee.

Thanks again for the advice

Shiv

 

[Propertunity]

....we were able to secure a property in the area i wanted at a price less that the vendor wanted by a margin more than enough to cover the buyers agent fee.

Congratulations Shiv, that's a good result for you