Brisbane Buyers Agents

Hi all,

Just wondering if anyone has used Investment House Buyers Agent in Brisbane or if they can recommend another Buyers Agent.

Many Thanks
PIppety:)
 
Just a question

If a buyers agent is payed based on a % of the purchase price then how are they going to obtain the best price (lowest) for the buyer seeing that every dollar below the asking price affects the pay they receive.

Just a thought
 
This question has been asked before and the answer is for the same reason a taxi driver might use a short cut or quicker route despite the fact that the fare may be less.

REPEAT BUSINESS or EXTRA BUSINESS from referrals.

Mike
 

Sim

Administrator
Exactly, you don't make your fortune finding a single property for your customer to buy - it's a volume business.

You must rely on many people coming to you to buy property, and the best possible thing you can do is have people come back again and again and buy more property. The costs involved in working with an existing (repeat) customer are far less than they are with a new customer - since you don't have to spend anywhere near as much time explaining to them how it all works and showing them around - trying to help them get the feel of the area and such.
 
The point is by basing the fee on a % of purchase price and then allowing the benifactor of the fee to be in control of the purchase price is fundamentally flawed.

In all things in investing you must keep control and in this case you just simply aren't.

Its all fine and good to talk about ethics and word of mouth etc but when it comes to money a lot these things are the first casualties.

Just my continuing thoughts
 
Hmmm, this is an interesting premise.

I can see both sides of the arguement, but I would like to comment on behalf of agents everywhere!

OK, lets say you come in to me, as the Buyers Agent, and tell me that you have $50,000 to spend, and a serviceability limit of $500,000.

You tell me that you want a positively geared investment, at the best ROR possible.

After speaking with you, I determine that you are open to suggestion, and don't mind the demographic of the investments I offer you.

What's better for YOU AND ME?

If I go out and find you two, $220,000 properties, with a $10,000 deposit each and a weekly rental each of $320.
This satisfies your parameters...

Total price: $440,000
Total rental: $640
Basic return: 7.56%

OR

Is it better to go out and find you FOUR $100,000 properties, and negotiate a $1000 deposit on each. Each rents for $175.

Total price: $400,000
Total rental: $700
Basic return: 9.1%

Which way do I get paid more?
Which way do YOU get more return?
Which am I more likely to do?

Well, if it were me, I would propose the second alternative.

Why?

Because this will be better for YOU. (According to the parameters you set earlier).

And, even though, on this scenario, I make $1200 LESS that the first scenario...
Which way is going to bring you back sooner?
Which way is going to have you send your friends, colleagues, etc to me to use my services?


This question HAS a lot to do with ethics, as a Buyers agent I am contracting to do the BEST by YOU...

BUT It also makes good commercial sense for me to do the best by you. Because, as Mike said, I get more BUSINESS...

just my $0.02

asy :D




(By the way, I know this doesnt take into account closing costs, and fees, it is meant to be a simplistic example)
 
With regards to the more money question as an agent recently said to me, "whether you pay 170k or 150k makes a difference to me of around $300 so I don't really care what you offer"

The difference in commission over a $20k discount is minimal and they will benefit long term far more from getting the good discounts. Just depends on whether the agent is a short term thinker or someone who takes a longer term approach to their business.

Rick
 
Asy,

In your above example- are you more likely to go for a buyer who is waiting to spend money, especially an investor who is more likely to come back- and especially one who is buying more properties? Is it of advantage to you not to have to go to open inspections at a property every Saturday for three weeks? And not to advertise the property?

Would that advantage translate into a lower price- or the likelihood that you will call up that investor again ahead of other potential buyers?

The block of flats I bought did not even go onto the market. I was introduced to the agent by a fellow investor- he had something for me three days after that. I had an offer in the day it went onto the market.

I understand now that another real estate agent is now at the top of the queue for anymore local bof's. What would put him in front? Easy dealings? Quick settlements (mine took a while). Mateship? Kickbacks even? (my kickback was just a dozen bottles of rather nice wine... what's the usual?)

Thanks for your thoughts, it's always good to hear the viewpoint from "the other side".
 
Originally posted by geoffw
Asy,

In your above example- are you more likely to go for a buyer who is waiting to spend money, especially an investor who is more likely to come back- and especially one who is buying more properties?
I don’t ‘go for ‘ any buyer. Although, theoretically if you have two purchasers wanting the same property, offering the same amount with the same terms, and neither will go up in their offer, I would gently suggest that the vendor accepts the one who is more likely to go through with the deal, simply for the Vendor’s sake, and piece of mind. But you can never really tell.

Is it of advantage to you not to have to go to open inspections at a property every Saturday for three weeks?
Obviously, it’s a matter of time management for me, and more importantly, security of knowing the property is sold, for the vendor. But I would never use this as any kind of sway as to whether or not to put a property to a vendor. The decision to accept or reject an offer is not mine to make, it’s the vendor’s.

And not to advertise the property?
It is never an advantage to me, not to advertise a property. Advertising a property gives my company exposure, and turnover in my ad means I am selling properties, so this is not an advantage to me, but it certainly is to the vendor, who is paying for the advertising.

Would that advantage translate into a lower price- or the likelihood that you will call up that investor again ahead of other potential buyers?
Not necessarily, and yes, in that order.

As I said, the vendor accepts the price, not me. I would put the price to the vendor, some vendors will say, YES, let’s accept a low price to know it’s sold, and others will say NO, I will wait till I get my price, I am not in a hurry. However, if a purchaser was professional, knowledgeable, not rude, and didn’t muck around I would be much more likely to ring them every time a property came onto the market that met their criteria.


I understand now that another real estate agent is now at the top of the queue for anymore local bof's. What would put him in front? Easy dealings? Quick settlements (mine took a while). Mateship? Kickbacks even? (my kickback was just a dozen bottles of rather nice wine... what's the usual?)
what’s a bof?
I would ring another real estate agent to deal with because they are easy, they know what’s going on, and I have always had good responses when I have said “I’m an agent” when negotiating.
Kickbacks? I have NEVER gotten nor given a Kickback to or from another agent, nor a party for whom I am not working. If I did I would disclose it to the party for whom I am working.

I have, however, on occasion received a bottle of Baileys (don’t drink wine) from clients, which was always welcome ;) and many of my clients bring me flowers.
There is no usual. It’s like any other professional, if you would like to give them something, do so, but I never expect it. I have done a job, I have been paid, but if a client thinks I have done a particularly good job they say thanks with a gift.
As I said, it is always unexpected.


Thanks for your thoughts, it's always good to hear the viewpoint from "the other side".
Why do agents have to be the ‘other side’, Geoff, can’t we work together?
But, you are welcome. Keep asking.

asy :D
 
Hi Asy,

Geoff has just introduced a new 3 letter acronym - as if we don't already have enough of those.;)

In his post he quotes: "The block of flats I bought did not even go onto the market."

My best guess is that a bof is a block of flats.

The other day Nivia explained to an English audience that a block of 6 flats was also known as a "six pack". Not sure if they understood what a six pack is, though. :)

Regards, Mike
 
Asy,

I really appreciate your openess. That's a great post.

The "other side" reference was meant in jest, as you've no doubt realised.

(BTW, like your makeover in the avatar).

As Mike said, after I started the respones, and before I finished, a bof is a "block of flats".

I more often refer to them as a flock of bats.

It is never an advantage to me, not to advertise a property
So it's better for you to advertise something (lead time several weeks) than to sell it directly to an eager buyer? Many people in the forum have said that they build a relationship with the agent, and that the agent calls them before the property is advertised. What is the advantage to the agent in this case? Does this mean that if the agent rings me, I am at the bottom of the food chain?

And does this mean that advertising space matters more than real sales? I have had the impression that this does matter a bit more in larger agencies.

Well, kickback was a too strong of a word. A "thank you" gift. A box of wine was insignificant compared to the cost of the property- or even the commsission. But it was something just to say that I appreciated the deal.




edited to change "btw" to "BTW" as per Sim's insistance on capitalised TLAs
 
Last edited:

Sim

Administrator
As an expert in TLAs I insist that you capitalise them. Writing a tla in lower case is simply not on !

:D
 
Originally posted by geoffw
So it's better for you to advertise something (lead time several weeks) than to sell it directly to an eager buyer?
No, it's always better for the vendor and the agent to sew a deal up as soon as possible, as long as the price and terms are acceptable to the vendor. A bird in the hand, and all that... ;)

However, the advertising is important to my business as well.

Lead time on advertising should be no more than a week and 2 days (assuming weekly newspaper), if it is, the agency is badly disorganised.

If a property sells quickly, before I can get it into the newspaper, I would probably put it into the paper at my cost with a sold sticker across it to advertise the fact that we had sold it, space allowing.


Many people in the forum have said that they build a relationship with the agent, and that the agent calls them before the property is advertised. What is the advantage to the agent in this case?
The advantage to the agent is that the property gets sold, quickly. Remembering that the sooner it sells, the sooner the agent gets paid and it also negates the risk of losing the listing.

Does this mean that if the agent rings me, I am at the bottom of the food chain?
I would think that if the agent rang you, you were at the top of the food chain!!!
(Not implying, of course that you are about to be eaten ;) )

And does this mean that advertising space matters more than real sales? I have had the impression that this does matter a bit more in larger agencies.
not sure that I understand the question, could you rephrase please :)

Well, kickback was a too strong of a word. A "thank you" gift. A box of wine was insignificant compared to the cost of the property- or even the commsission. But it was something just to say that I appreciated the deal.
BAILEYS... :)

and yes, the agent always appreciates being appreciated.

asy :D
 
I’ve just used the services of Property Research P/l (Scott McGeever) and he was excellent. He is a registered valuer, so that was handy as we finally found a place back in May when the market was “HOT”, he also kept to our criteria.

Just on investment house I actauly flew up to Brisvagas to meet three buyers agents, I didn’t bother with “Tony Benedetti,” as I found him difficult on the phone, so cut him out of the loop (I figured there would need to be a lot of trust in this transaction with us in ACT).

I met with Investment House (his name escapes me for the minute) he was easy to get along with however I didn’t want to do what he was suggesting.

I then met with Scott McGeever who has himself bought renovated and sold ect. So felt good about him and hence used him.

Cost 2 ½% which when he presented me with a place & told me what he thought it was worth I’d take his fee from that figure and that was to be our maximum offer, needless to say we missed quite a few places!!!

Finally found a place 3 bed dilapidated QLD’er in Wilston, secured it for $267k spent 70K on big reno & bank valued it again @ $375k so very happy. Scott also acted for me as a project Manager to do all the work. (Money well spent because there were a few drama’s). that finally cost me $2400 as he had to put in some extra hours.

Hope that this helps…

Ed
 
Thanks Ed, this is very helpful. Does he have a website that I can look at ? If not, do you have his contact details ?

PIppety;)
 
How a buyer agent get paid...

Hi,


If a buyers agent is payed based on a % of the purchase price then how are they going to obtain the best price (lowest) for the buyer seeing that every dollar below the asking price affects the pay they receive.


Good question...

Firstly, their are very few real buyer agent in Australia. The "buyer agent" tag is sometimes very misleading... Many buyer agents are now becoming fronts for markerteering groups and associated con groups.

Secondly, a buyer agent can get paid a million different ways. Flat fee $5,000.... % of price... fee for service $100 an hour... combo of these... etc. But I take the point... most buyer agents take a percentage. Therefore... all I can say is that when I buy for people they know everthing !!!!!!!!!!!!!

I explain what the property is worth... and I explian why it is worth $x dollars. I also explain how I negotiate the deal. (i.e. I start low and negotiate quickly back and forth until i find the low level.)

But... teh simp;lest answer is... do you trust the person? (But please make sure you check the group or person out... to see if they are teh real deal !!!!!!!!!!!!!!!!!!!!!!!!!!
 
Hi Handy,


You said, "The point is by basing the fee on a % of purchase price and then allowing the benifactor of the fee to be in control of the purchase price is fundamentally flawed.

In all things in investing you must keep control and in this case you just simply aren't. It's all fine and good to talk about ethics and word of mouth etc but when it comes to money a lot these things are the first casualties."


Good point... but the buyer and the market decide on the price.

SHIT... at present on the Gold Coast... the baby boomers are moving in and paying a premium. For example... a year ago I was buying 2 waterfront homes for people around $490k and last week they sold for $800,000 plus. Sure i've got heaps of clients in the $700 plus market... (AND i woud never even had bothered to inspect these properties...)

But if a buyer is guided and has all the information and options that they could dream of... then they will always make a good decision.
 
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