Retainers only amount to a few $1K's. This would not go anywhere near compensating anyone for what can potentially go wrong in a property deal.
We carry $5M worth of PI, haven't had a claim, don't expect to have one, but are covered if we do.
Buyer's Agent
- Thread starter jaspn
- Start date
Retainers only amount to a few $1K's. This would not go anywhere near compensating anyone for what can potentially go wrong in a property deal.
We carry $5M worth of PI, haven't had a claim, don't expect to have one, but are covered if we do.
While sincerely not trying to offend anybody (I am a man of peace!), I'd like to hear some facts or ideas on pros and cons of using a BA when the market is in favour of the seller. I imagine there's little to no price negotiation to be had right now, so it would be interesting to hear any other advantages/disadvantages of BAs which reflect the CURRENT market situation of western Sydney. Thank you, and I appreciate everybody's input so far.
Why all the hate towards buyers agents?
They are simply another tool for investors to use. Maybe not valuable for a cheap property though, due to the percentage of the property purchased, but on say $500k the percentage is much more appealing.
Very handy for someone out of town or who is time poor. If that's not you then you might not need their services. Simply really.
They are simply another tool for investors to use. Maybe not valuable for a cheap property though, due to the percentage of the property purchased, but on say $500k the percentage is much more appealing.
Very handy for someone out of town or who is time poor. If that's not you then you might not need their services. Simply really.
BA's typicaly dont just go on realestate.com.au looking for houses that can have tenants put in. A lot of what they do is to search for a specific brief... eg locating and negotiating on a site to do a villa build, or finding a $5m ppor in mosman for an overseas doctor returning home. This where their network of agents and contacts comes in handy to buy off market properties.
But as a seller would you sell to a BA before the property "hits the market"? Without the competition are you going to get the best price?
If you can get a quick sale and you need the money why not?
As a seller, now way! Which is why I don't understand right now how anybody buying is able to get a 'good deal'. The only way I see a good deal happening is through extreme circumstances on the sellers behalf - fire sale etc. very unlikely but.
Hard for me to fathom this. If it were me it would be all about the money in my pocket. It's the reason why I'm investing.
but 70% of the property market transactions aren't about that - they are people with emotions making life choices for emotional reasons. Hence people making choices u wouldn't make. Thats why I love real estate
This is interesting. I know Prop has addressed specific requests already but just from my own reading of forum posts over the years and also meeting him once for lunch I can confirm Ian has been generous with his time, often posted helpful and informative information, not just ads. Anyone who reads a cross section of posts over time would see that. He also gave me a lot to think about over a 2-3 hr lunch for just the cost of some marrickville thai and no hardsell at all.
several of the other ba's have also put quite a lot of time into the forum. I am all for a robust debate which is the strength of this forum and I actually agree - rebaa is more of a peak body for ba's and unlikely to defend the needs of the consumer but thats what fair trading is for. OFT can de register selling agents for misconduct - I dont see why they couldnt do the same to a BA if they were informed of negligence.
Do any forumites have an actual experience of ba gross misconduct, either 1st or 2nd hand? Care to share? If not Im unsure what the agenda is
Personal grudge? Unhappy with someone, try to discredit them publicly.
Jaspn you'd be surprised at people's reasons for selling to the first buyer and not always at the best price. I bought one IP first day of listing and one was sold a few weeks later for more. Sometimes they don't know the price and just listen to the agent who lists it cheap to get a quick sale. Some people need the money fast. I put a really low offer in once and got laughed at. Then I got a call a few weeks later saying OK if I could settle quickly. They needed the money.
I think in this market a BA has their job cut out for them. But it is in this market where you are more likely to get a good price with a BA. With everything going so quickly it may give you a chance to get a property before it hits the market or as soon as it does, as BA's are often the first person a real estate agent rings. Guaranteed it won't be you they ring first.
Personally I can't see why someone would be against BA's. OK you may not want to use one yourself but surely it's not difficult to see the benefits they can bring to buyers.
You just need to decide on what the service is worth to you.
Sim
Administrator
I think it's more just a reaction to a new industry segment still finding its feet.
I remember similar hostility towards mortgage brokers when they first started becoming common.
As the Buyers Agent market matures and grows, new entrants will try pushing the boundaries and trying to find their own USP/UVP to differentiate themselves in the market. Along with this innovation comes some risk and some players perhaps not playing quite by the same rules as others might expect.
This may lead to confusion in the marketplace with the general public not yet fully understanding exactly how buyers agents work - especially when some players doing it a bit differently to the "norm".
Not everyones selling motivation is money. Just a couple of reasons for selling before it "hits the market" off the top of my head.
Privacy - I.e. Divorce/not wanting friends/family/neighbours to know.
Financial stress - See above
Security - I.e. High profile seller, not wanting nosey folk poking their noses in for a quick peak.
Save on marketing fees etc etc the list goes on and on.
As for getting the best price. Some people deliberately sell off market to maintain maximum negotiation power. I.e. I don't have to sell, so I will hold out for a premium on my terms and within my time frame.
In my limited exposure to BAs, which I admit is only via these forums, is that of politeness and a willingness to help. Indeed this is a great place for people in the industry to obtain contacts and potential work, which from my point of view reinforces the need to do the right thing by the end client. A solid reputation on here could probably go a long way...
