buyers agent fees and experiences Perth

Hi All,

I am quoted price of 35 K by a leading Perth buyers agent to source standard 3 units development site. He guarantees 15% gross profit (which I think is lower).

I think it's quite expensive. I would have thought it should be around 15 K max.

What are your thoughts regarding this? Also, if you can share your experiences regarding their service and roughly how much he/she charged you, that will be wonderful.

With regards,
Rooky
 
Is that just to source the property or project manage through the development also?

Pm me if you would like to know who, how, price etc that i have used.
 
Couldnt be could it? Unless it is the whole process.

Maybe todd heron or wizards?

But i tell you if its a guaranteed 15% (in writing???) i would be jumping on it.

Cheers

Would you really? Guaranteed 15% gross would be bugger all once gst and income tax is paid. Waste of time
 
Hi All,

I am quoted price of 35 K by a leading Perth buyers agent to source standard 3 units development site. He guarantees 15% gross profit (which I think is lower).

I think it's quite expensive. I would have thought it should be around 15 K max.

What are your thoughts regarding this? Also, if you can share your experiences regarding their service and roughly how much he/she charged you, that will be wonderful.

With regards,
Rooky

If it's just to source the site only that's A LOT of money.

What else does it include?

Have they developed before themselves?

Oscar
 
Last edited:
Hi All,

I am quoted price of 35 K by a leading Perth buyers agent to source standard 3 units development site. He guarantees 15% gross profit (which I think is lower).

I think it's quite expensive. I would have thought it should be around 15 K max.

What are your thoughts regarding this? Also, if you can share your experiences regarding their service and roughly how much he/she charged you, that will be wonderful.

With regards,
Rooky

I think it's quite ridiculously high UNLESS it goes from finding through to selling/renting out and includes all project management. If its 2% buying costs and 1.5% of construction costs for PM it's not bad.

I am doing this service for people on here but I only have room for one more client at the moment as I need to keep numbers manageable.
 
Hi rooky

I'm not sure how anyone could make such a guarantee. What is the basis of it? Nobody can really predict the future!

Also, are they a BA or a developer? I would suggest you check in with the Real Estate Buyers Agents Association of Australia (REBAA). They have cost guidelines etc, as well as a directory of members.

Cheers

Jen
 
Hi

I was also thinking of using a Buying Agent, I called Momentum and they quoted me $15k for a property between $300-$600k.

I declined as this sounds like an incredible amount? I was looking at propertys around $450-$500k, so this would amount to 3.5-3%?

Should I go with it or look elsewhere? I have heard good things about Momentum. Or should I not bother using a BA? This is my first purchase so I want to ensure it is a good one..

Can anyone recommend a cheaper service?

Thanks guys
 
Do your own research and save the 15k. Even if you buy 15k over market that'll be the equivalent cost but teach you a crapload more.
 
Thats very true mate. But I am quite lost on which Perth suburb to invest in. If theres anyone experienced in the perth market that has any advice, feel free to PM me lol!

*lost*

Cheers
 
Thats very true mate. But I am quite lost on which Perth suburb to invest in. If theres anyone experienced in the perth market that has any advice, feel free to PM me lol!

*lost*

Cheers

Don't invest in anything you don't understand.

Oscar
 
Hi HD_ACE

Thanks for sharing your experience via pm.

Hi All,

15% is not actually guaranteed return but it was their targeted margin inclusive of their fees. My bad. I put it wrongly.

Also 35 K does not include site survey and soil testing. It's just normal feasibility study and sourcing site. As other people have mentioned, this is quite expensive and best way is to know market yourself.

Rooky
 
Hi All,

I'm the BA here and I'm providing clarification on the various items discussed:

  • The fee is about 3% of a $600k purchase for a retain and build. This includes a full report, written advice from council and feasibility. In this market, for many clients I'm choosing not to take on the business as I don't feel I'll be able to find profitable deals.
  • In most projects between 1 to 4 units I'm advising against using MW due to the scale and would encourage the use of other buyers agents or DIY.
  • Our target market for development is 6 to 30 units our fees are approximately 4% of Gross Realised Value which includes site sourcing through to full project management/town planning. This is paid in instalments over key milestones of the project.
  • We never provide guarantees on returns, these are targets inclusive of all fees and net (ex. income tax). 6-8 units we target 15% and on 8+ we are targeting 20%+.
  • We currently have just under $100m worth of projects under management and plenty of happy clients.

I hope that clarifies some points and if you're looking at these scale of projects we are more than happy to be of assistance.
 
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