Buyers' agents in Sydney, Are they really worth it ?

Hi All,

I am thinking of buying one or two investment properties in Sydney, As I am not from the area, I was pondering whether I should hire a buyers' agent or not. The fact that there are some dodgy/unethical buyers' agents out there (throughout Australia) is putting me on the back foot.

I have often read stories about buyers agents, where the client ends up making a bad purchase because the agent wasn't truly looking after the buyers' interest. I think you know what I mean............

What do you think about my thoughts, am I just being overly cynical and suspicious OR do you think there is some substance in my thinking ? What have been your experiences ?

I believe that if someone hires a genuine/ethical buyers' agent, who works strictly for the buyers' interests, puts in hard work to find right property at a good price for the buyer. If this happens, I think employing a buyers' agent is well worth it and thus a good expense.

So, do we have any good buyers' agents in Sydney, if you know about them, please provide recommendations.
If you don't wish to say something about someone in public, pls feel free to PM me.

Hope to hear from the experienced Sydney investment fraternity.

Thanks.

Highambitions
 
There are a number of good BAs in Sydney.

If you are looking in the Hills District or North Shore areas I can highly recommend Jacque Parker from http://www.housesearchaustralia.com.au/ who also posts on the forum here.

Thanks PropertyUnity,

Do you know someone who specialises in Western Sydney and/or South-Western sydney areas as well.

I will appreciate if you will provide some more references of good buyer agents in this region.

Thanks again.

Highambitions
 
I second Jacque Parker if you are looking in the areas that she services,

A good mark of a decent BA is that they sometimes get gazumped by a much higher offer JUST before exchange.

While thats frustrating for the BA, the client and the financier, it shows that the BA is often buying below the current market for that stock item.

There is soooooooo much more to the benefits of a decent BA than just price for a start.



ta
rolf
 
How do you know about dodgy BAs?
What makes a BA dodgy?
And how would you know a good one from a bad one?
You believe everything you read and are not able to make your own decisions?
Or are you looking for someone to pass the decision responsibility?
The end decision is yours to make, not the BA's.
 
If they use the term "Trust Me" be aware they are probably dodgy lols

I would say if the do not try to leverage you but just present an opportunity then maybe they are ok. If they use pressure then I would be sus, why not ask if you can speak with some clients that have assisted in the past?
 
fees

Hi all,
Can anyone tell me what it costs to utilise a buyers agents services? - ball park figure is ok
ie: source and negotiate a property that suits my needs.. looking for one around the 200-250k mark..
Will contact a couple of them to ask personally as the time gets closer...

Cheers
 
BAs will usually quote a fixed fee or a % of the purchase price.

You'd be looking at a range of $5.5K > $7.7K (GST inclusive) for a full service option in that price bracket you've stated.
 
Buyer's agent

Hiya

2 of my first investment properties were bought using Buyer's Agent; are they worth their money?

Answer: Absolutely! The returns were many multiples of their fee! (and almost half is tax deductible anyway!)

For me, it provides someone with experience to "hold" my hand, guide me and generally prod me gently into overcoming my "procrastination".

Will i use one again? Absolutely!

Hint: Propertunity is a gem!
 
Me too

I used a BA as well and must confess to the same out come as virgo
but I didn't use Propertunity so there are at least 2 that are worth while plus nathan of course :)

stuart
 
My understanding is a BA will look for the property that fits your criteria.

If you know your criteria, whats the diff from going out and looking at properties yourself (apart from the BA potentially having access to properties that dont hit the market - probably a little rarer in todays economic climate tho). If you know what you want, do your DD and do all the correct inspections (building, pest etc.) - can a BA add 5.5-7.5k of value compared to a property you source yourself?

Im not wanting to hijack this post, but rather add another discussion point on the same topic. Most people are saying "YES - Their DEFINATELY worth it".. but i'd like to take it a step further and ask "How/Why" (versus doing the research yourself - assuming you have the time of course).

Im contemplating on taking up a BA myself for my next purpose too.
 
If your a REA and work on commission , the best way to make money is sell as many houses as you can .

If someone comes into your office and says 'sell my house for me '


what would you do

put it in the window waiting for Mr and mrs joe blow to see it , or start ringing round people you know who have buyers waiting ?

I mean is there much difference in commission between 500k and 550k ? ( I"m only guessing there isn't)


but if you have the time to build relationships with REA , time to do the research , time to be on the phone to many different agents , then no a BA isn't worth it .

So in the end ( for me ) the BA isn't about cost of money its about cost of time and knowledge , how much would you pay for that ?

stuart
 
G'Day Highambitions

Welcome to the Forum!

In Victoria, anybody acting on behalf of another - for buying or selling - must carry the full Estate Agent's Licence.

There is no distinction and all Agents must be registered. There is no requirement to belong to a Professional Assocation, just the Government Rgistration and the Agent's Register can be searched online.

In NSW I believe the regulations are slightly different, however all persons acting or 'willing to act' on behalf of another in a property transaction must be licensed

As I understand it, in NSW there is a 'full' licence which allows the Agent to act in any transaction, and there are restricted licences which allow the Agent to act on behalf of the buyer, but not on behalf of the vendor.

If you are engaging anyone to act on your behalf, you are then the Principal in the matter and you become their Client. A Duty of Care then exists between you and your Agent must act with your best interests in mind.

'Spotting', 'Bird Dogging' etc are illegal. Either the person is a licenced Estate Agent, complete with registrations and insurances or they are scamming you.

Their website, business cards etc should carry their Licence Number and details of whether they carry the full licence or a restricted licence.




Highambitions, remember that water finds its own level.

If you go through life looking for cheap ways of doing things you will find there is always a dodgy person willing to help you, usually for a fee.

Doesn't matter if it is a plumber wanting to work for 'cash in hand' or someone who knows of a property for sale and wants a fee from you for telling you the address.

If you always work with the system ie use the services of people who have met the Government requirements to work in that field, then the system will work with you.


I hope you have a great experience with your Sydney purchases. But don't forget your own backyard. People from Sydney are buying in Melbourne, so why not start there?

Cheers
Kristine
 
.. but i'd like to take it a step further and ask "How/Why" (versus doing the research yourself - assuming you have the time of course).

SmiTTY, on a previous thread :http://www.somersoft.com/forums/showthread.php?p=544866

I've said this:
I will be the first to admit that Buyers’ Agents are not for everybody.
If you:
• have the time and patience to go looking for a property or properties, attending ‘open-for-inspections’ and auctions,
• know what price you should be paying for a particular property,
• get calls from Real Estate Agents when good value properties are about to come onto the market (before they are advertised),
• are confident putting in offers, negotiating and dealing with Real Estate Agents and the games they play..................then you probably don’t need a Buyers Agent.

The posters here that say they'd definitely use one again, recognize that, even accounting for the fees they paid, they could not have gotten the deal that the BA obtained for them.

If they are buying from out of state, they have to catch a plane, hire a car, book into a motel, spend the time with agents looking at areas they are unfamilar with............probably a number of times until they become familiar. On this basis alone they will have probably spent their BA fees before any of the other stuff a BA could do for them.

For many it can all be about leveraging their time. If you're a doctor - you are probably better off doctoring which you do everyday than buying real estate which you do a couple of times in your lifetime. But hey, if you have the time and enjoy the experience - then go for it yourself - we Aussies are very independent and love DIY stuff.
 
Thanks Propertunity. I would have no doubt about using a BA for an area Im unfamiliar with (eg. Melbourne/Vic). However I am looking for a property in the sydney metro area (my "hood") and actually do have a bit of time to do my own research. So for that reason I may opt for doing it myself (and learning on the way). I have a Rpdata subscription too so will try to make use of that.
 
Reading through Propertunity's post, im trying to figure out if a Buyer's agent is for me.
have the time and patience to go looking for a property or properties, attending ‘open-for-inspections’ and auctions
Have the time, lack the patience (but ill do it anyway) to go to open house and attend auctions.
know what price you should be paying for a particular property
I do have RPdata access, so I am able to research what was last sold. Though whether im using the data correctly im not 100% sure. Why i say this is because I think a property is $X price, vendor says its close, but no enough, then at auction it just goes crazy.
get calls from Real Estate Agents when good value properties are about to come onto the market (before they are advertised),
This is something I am after.
are confident putting in offers, negotiating and dealing with Real Estate Agents and the games they play..................then you probably don’t need a Buyers Agent.
Yay and nay. Depends on the person, though through lack of practice I probably come across as arrogant and annoying. Mainly because i know they are lying to me and i feel a need to put them in their place.

In a quiet market or a not so hot suburb, I can definitely see the value in a buyers. But it seems in the suburbs im looking at, everything is going to auction and people are just paying way more than they what I reckon they should.

Some examples in the area of Concord NSW
July 2009 - House sells for $710k. 550 sqm
Nov 2009 - House next door (to the one mentioned above) is going for auction. 470sqm. I offer $800k, they want 825k. I go up to 810k and leave it at that. Auction finishes up @ 870k 2 weeks later.
Feb 2010 - House nearby sells for 870k. 400sqm.
Feb 2010 - Houses around the 400sqm mark, unrenovated asking for 850k+

Does a buyer's agent work when the market for the target area just seems to be getting hotter and hotter?

Ideally, im interested in using a buyers agent the following reasons
1. Find me a house before it hits the market
2. Negotiate a good price. Im kinda hoping here that when a buyer agents puts in a bid on my behalf, the other agent knows its serious. Where as if i put in a bid myself, i seem to get agents either use my price as a benchmark and try to push others higher and just ignore me.

Are my expectations of a buyers' agent unrealistic?

Anyway, can anyone recommend one for Sydney's inner west? (Concord, Croydon, Ashfield, Ashbury, Canterbury).

Ive been searching for the almost the last 6 months for a house and cant find anything at all... its getting quite depressing (or ones i do like end up going for 50k more than reserve) :(
 
....... i say this is because I think a property is $X price, vendor says its close, but no enough, then at auction it just goes crazy.
This is what happens in a RE boom. Everyone thinks the prices went crazy, which they did, but then the crazy prices become the norm and a new level of support is reached (yeak OK it is a stock market analogy)

...... through lack of practice I probably come across as arrogant and annoying.
Yeah, that won't help your cause :rolleyes: (but I know you already know that)

Mainly because i know they are lying to me and i feel a need to put them in their place.
Revenge is best left out of the offer/negotiation process.


Does a buyer's agent work when the market for the target area just seems to be getting hotter and hotter?
Yes & No.
Yes a BA can still take an unemotional stance and also advise you realistically what you will have to pay to secure a property.
No if all you want is a BA to grab you a "bargain". In a hot market where everything goes to auction, bargains are mostly not to be found. A BA's role in that environment is really reduced to getting you first in line so you get to buy the property in front of others.


Ideally, im interested in using a buyers agent the following reasons
1. Find me a house before it hits the market
This can and does happen. We purchased one last week like this. No contract was even available to sign - just a handshake deal with a not-yet-appointed selling agent, a vendor and me as a BA. BUT, this happens less frequently in a hot market.


2. Negotiate a good price. Im kinda hoping here that when a buyer agents puts in a bid on my behalf, the other agent knows its serious.
Yes, a good BA has credibility with selling agents as they are bringing a finance pre-approved, qualified, research already done, buyer client (who has paid the BA a non-refundable retainer - so we know they are serious) to the table.

Where as if i put in a bid myself, i seem to get agents either use my price as a benchmark and try to push others higher and just ignore me.
You will buy 1 or 2, a BA will buy that many or more a month off the same agent. Who do you think will get the most service and attention? ;)


Are my expectations of a buyers' agent unrealistic?
Dunno. More information required.


Anyway, can anyone recommend one for Sydney's inner west? (Concord, Croydon, Ashfield, Ashbury, Canterbury).
Irene Cassidy at Art of Buying, I am told is very good.

Ive been searching for the almost the last 6 months for a house and cant find anything at all... its getting quite depressing (or ones i do like end up going for 50k more than reserve) :(
Sounds like a lot of our clients when they come to us for help. :)
 
Just a quick post from me on this one for now.

I live in sydney and used a BA - not to name drop, but I found Propertunity
very good for buying in western sydney. We only settled on the place under two weeks ago, so I can't comment on the long term CG on the place, but I think we did pretty well on it.

This was our 1st IP and I'm pretty certain that I'll be going down the BA path again for #2.

Gotta cut this one off here - need to walk the dog with the company of James Squire. Feel free to PM me for any Q's you may have about using a BA.

BD
 
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