Buyers agent company taking retainer fee before meeting in person?

[FHBUYER]

Hi All

Im currently emailing potential buyers agents. Ive been speaking to one recently only by phone. I found that:

a) I spoke to the customer service person via phone to discuss my property requirements. They sent me their info pack and wanted me to sign and send the completed buyers agent agreement (include my credit card details) and my wishlist to them. They will then process my credit card details to pay the retainer fee and THEN the buyers agent will contact me to have our first meeting in person.

b) The customer service person mentioned the buyers agents name, however I couldnt find their profile on their company website.

Can someone please tell me if this is the normal procedure? I found it odd that I dont get to meet my buyers agent in person BEFORE paying my retainer fee and signing the buyers agent agreement.

Ive emailed the customer service person as I have a few queries on the clauses in the buyers agent agreement. Im waiting for their response


If someone can please detail the step-by-step procedure for engaging a buyers agent's services, that would be great.

TIA

 

[monalisa]

I'd be very careful - when you know nothing about the BA, haven't met him, have no idea about their profile.

Also, if you don't know much (if anything) about them, why would you hand out your credit card details -who knows whether they are able to help you or not??

 

[Rolf Latham]

Can someone please tell me if this is the normal procedure? I found it odd that I dont get to meet my buyers agent in person BEFORE paying my retainer fee and signing the buyers agent agreement.

Hi Tia

the above isnt unusual, where the retainer is refundable, subject to further engagement.

In the current climate id guess there are more enquries than an organisation can handle, thus one needs a filtering mechanism.

What is of concern is that the person you are to be "partnered" with - you know nothing about them personally, so if the fee isnt refundable in the case you end up with Bozo the clown, youd want to exit the arrangement.

ta
rolf

 

[FHBUYER]

Hi Tia

the above isnt unusual, where the retainer is refundable, subject to further engagement.

In the current climate id guess there are more enquries than an organisation can handle, thus one needs a filtering mechanism.

What is of concern is that the person you are to be "partnered" with - you know nothing about them personally, so if the fee isnt refundable in the case you end up with Bozo the clown, youd want to exit the arrangement.

ta
rolf

Thanks for this. On their Terms and Agreement, the retainer is non refundable.

Thanks for your fast response too Monalisa.

I thought the arrangement did sound odd, thanks all for your comments.

I havent signed anything.

 

[HD_ACE]

Thanks for this. On their Terms and Agreement, the retainer is non refundable.

Thanks for your fast response too Monalisa.

I thought the arrangement did sound odd, thanks all for your comments.

I havent signed anything.

Then no.

Always meet with them first to ask all the questions and make sure your comfortable with them. Also make sure they can source and are knowledgable in the properties you are after.

Also bas will have a few on the go so make sure they dont have another client with the same criteria in same areas as you will be looking ie development sites or reno etc otherwise who decides who gets it.

If your happy then pay the deposit and start your search.

Cheers

 

[Jolly123]

Hi All,

I'm planning to engage a BA for an interstate property. I thought I don't need to see them face to face as I don't have time to go interstate myself. Is this not recommended? Don't ppl usually engage the local BA? Meaning if I want to buy in SA, then I look for a BA in SA.

Thanks.

 

[geoffw]

Fhbuyer- it may also be worth while to check if a buyer's agent is a member of the REBAA (www.rebaa.com.au). Part of their code of conduct is that they will explain every step with you. A retainer is ok, but with the others, I agree that it's not usual to pay without even talking with them. You do want to know if you're at least comfortable with them.

Jolly- you do want an agent on the ground where you want to buy a property. But phone, email, or even skype, are usually good enough.

 

[Jolly123]

Thanks GeoffW, the link is great.

 

[Rolf Latham]

Hi All,

I'm planning to engage a BA for an interstate property. I thought I don't need to see them face to face as I don't have time to go interstate myself. Is this not recommended? Don't ppl usually engage the local BA? Meaning if I want to buy in SA, then I look for a BA in SA.

Thanks.

Id guess much of a BAs work, they never meet the client, which is part of the appeal to use such a person when you are interstate or overseas.

You can work off existing profile and maybe a a reference or two.

ta

rolf

 

[wylie]

Perhaps you should be looking for a BA who posts on this forum, or ask others on this forum who they would recommend in the city you are wanting to buy into.

 

[Terry_w]

How much is the retainer?

 

[DavidTomlins]

Rolf and HD_ACE have basically covered all points.

It definitely isn't uncommon to ask for a retainer. Dependent on the dollar value however you would look for it to be refundable.

In regards to no details on the actual buyer's agent I would be extremely hesitant. If you are working with a bigger agency I would expect at least for a principle to be listed who will oversee the process in the agreement.

 

[Propertunity]

Hi All,

I'm planning to engage a BA for an interstate property. I thought I don't need to see them face to face as I don't have time to go interstate myself. Is this not recommended? Don't ppl usually engage the local BA? Meaning if I want to buy in SA, then I look for a BA in SA.

Thanks.

That's pretty right. We don't get to meet in person with many of our interstate or overseas clients. (Part of the reaosn they are using us, is that they don't want to / can't get the time to travel). But we still engage on the phone / email before, during and after the search.

 

[Propertunity]

Personally, I would not be paying a non-refundable retainer to someone I actually plan to meet in person.

When we do get the opportunity to meet a client in person, we do so. It is an interview process that works both ways:
The client gets to see if they want to go to the next step and retain us for their search.
We get to see if we can work with that particular client, given their search criteria and budget considerations BEFORE they hand over a retainer.

 

[Rolf Latham]

The client gets to see if they want to go to the next step and retain us for their search.
We get to see if we can work with that particular client, given their search criteria and budget considerations BEFORE they hand over a retainer.

what, you cant get places 50 k below value that are metro and have a min 7.5 % return ? .

Im sure you still get them every week, because I see some similar ideas go through peoples heads sometimes

ta
rolf

 

[Jacque]

Then no.

Always meet with them first to ask all the questions and make sure your comfortable with them. Also make sure they can source and are knowledgable in the properties you are after.

Also bas will have a few on the go so make sure they dont have another client with the same criteria in same areas as you will be looking ie development sites or reno etc otherwise who decides who gets it.

If your happy then pay the deposit and start your search.

Cheers

Well summed up by HD here.

As with any service, you need to be comfortable and happy with who is going to be working for you. Paying a retainer upfront before you even obtain a meeting with the BA is ridiculous in my opinion, and completely unwarranted. Similarly to Prop, we meet and engage with our clients (in person, via phone or skype) before we decide to work with them as well. It's vital that we are all on the same page, the criteria and budget are realistic and the client is committed to the search. I consider it a huge privilege to act on a buyer's behalf, as buying property is one of life's most expensive investments and such an important decision that you need to ensure whomever is acting for you is someone you are 100% on board with.

Ask for recent testimonials, ensure they are properly qualified and reputable (as per Geoff's post) and have local knowledge.

I also highlighted HD's comments above as this is an area where some BAs can tread dangerously, in searching for multiple clients with the same brief and budget. An important question to ask of any BA is:
Do you take on clients with the same brief, and, if so, how do you manage this conflict? It's a question often forgotten however is imperative to ensuring that your search is personalised and catered to your specific brief and budget.

Hope this helps somewhat.

 

[Jacque]

what, you cant get places 50 k below value that are metro and have a min 7.5 % return ? .

Im sure you still get them every week, because I see some similar ideas go through peoples heads sometimes

ta
rolf

Hahaha this made me laugh - so very true

 

[LisaParker]

I couldn't agree more with Jacque & Prop.

I would never expect a buyer to pay an upfront retainer before meeting with me first.
It is extremely important for both parties that they are comfortable with one another and that there is mutual trust and respect.

I think it is wise to shop around and find someone who you connect well with and feel you trust and also who can demonstrate a great track record and depth of experience. After speaking with a few options, I think you will know who the right person/company to go with will be.

 

[Peterw]

I could not help but think, how many vendors would accept the proposition, of paying a retainer, before we met to discuss the sale of their property ...

I am going to have to think about that !

Without experience, I can understand a buyers agent asking for a retainer, once appointed. They are not unusual in project marketing appointments.

Sadly, there are people in every profession pushing the boundaries for fees.