Mark, are you licensed in NSW to act as a BA or are you under a different name? Just can't find you on the NSW register
https://www.licence.nsw.gov.au/LicenceCheck/
Buyers Agents - skeptical
- Thread starter RicandAnn
- Start date
Mark, are you licensed in NSW to act as a BA or are you under a different name? Just can't find you on the NSW register
https://www.licence.nsw.gov.au/LicenceCheck/
just a few points to consider:
* good buyers agents have sound local knowledge, negotiation skills, and know good deals when they pop up, however,
* the negotiation skills are very helpful in a flat, down or rising market, buyers agents will have opportunities to negotiate, in today's Sydney market, buyers are fighting for houses, there is little chances to negotiate prices (IMHO)
* if a property is only about $400k, the buyers agent fee is about $10k, is that really worth it?
advice and comments welcome
* good buyers agents have sound local knowledge, negotiation skills, and know good deals when they pop up, however,
* the negotiation skills are very helpful in a flat, down or rising market, buyers agents will have opportunities to negotiate, in today's Sydney market, buyers are fighting for houses, there is little chances to negotiate prices (IMHO)
* if a property is only about $400k, the buyers agent fee is about $10k, is that really worth it?
advice and comments welcome
perhaps not very helpful, so i dont know if you are just having a bit of fun, or having a go at the BA profession generally ?
ta
rolf
which is perhaps why its helpful to have someone with those skills get that place under contract on Tuesday, while the typical BA client is engrossed at their work, vs waiting to attend the open House on Saturday to then be part of the "best offer" 'auction campaign'
A good Buyers agent means different things to different people at different stages of the buyers life AND the stage of the market
ta
rolf
Let me preface my response by outing myself as a BA so obviously my HO is going to be a little different from yours
however in my experience, a good BA also brings knowledge, experience, skill and education to the purchasing process in ensuring that the buyer is as fully informed about the market as possible. A few points to reconsider:1. Our job is as much as about identifying (and dismissing) the "lemon" properties as it is about finding the gems. Not all buyers utilise nor have access to the information that allows them to do this accurately.
2. We are used to rejection and will walk away if/when we need to do so, if a property is over our max appraisal (obviously also considering the parameters of our clients instructions) and move on to the next property. Not all buyers possess the fortitude to continually do this and so end up paying more than fair value in the process. (*Human nature being what it is, however, few will admit to this afterwards, instead justifying the price paid with cognitive dissonance)
3.It can be false economy to take too long in a rising market to purchase, hence engaging the services of a professional to do it faster and more efficiently makes sense. Recent example- I had a PPOR potential client Jan this year whose preferred budget of $700K wasn't unreasonable for her chosen criteria of a 3x2x2 townhouse in her preferred area. A whole 9 mths later (and without our help obviously) she only recently bought but had to settle for a 2x2x2 unit instead- the rapidly rising market cost her dearly.
4. Rather than repeating myself (as I've written scores of posts on this subject over the years) to put it simply - there are many reasons why buyers choose to engage advocates for the purchasing process, just as sellers do when it comes time to dispose of their largest asset. Real estate and buyers agents aren't for everyone and it needs to be a personal decision to outsource the sale or purchase of any property.
And... obviously if you are going to use a BA please ensure they're licensed.
Mark, given that you have come onto a public forum and advertised that you're a BA I do believe it's very poor form that you haven't answered this earlier question, or my email to you yesterday regarding the same, and I do await your response.
Facts:
1. According to the OFT online register (and phone enquiry today) there is no NSW RE licence for a Mark Coburn or David Ward (though OFT did find an old record of an expired licence for a David Ward from Bowral). As you would be well aware, you would be acting illegally and in breach of the PSBAA if you were acting on behalf of purchasers/vendors without a licence.
2. According to your own "charter" on your website which you claim to have "created based on client feedback" (which interestingly has been copied almost word for word from the REINSW BA Chapter Best Practice Guidelines- guidelines that took our committee many months of hard work to formulate and I don't recall seeing you on the committee assisting us here- especially given that you're not an REINSW member) you must hold a full RE licence.
http://steppingstoneproperty.com.au/?page_id=7
I look forward to your explanation.
Not really sure what to say to this. Exactly 6%? No more or less? You wouldn't have this 'negotiated' prior would you? Makes your job as a 'Buyers agent' very simple.
I have several problems with this model, the main one being the vendor rebating 6% in the first place. I appreciate that there's going to be selling costs including a marketing budget in any real estate sale, but it's not 6% which suggests that you're not purchasing at market value. Regardless I doubt the selling agent would be refunding the marketing costs back to the purchaser.
As a finance broker my experience is that valuers will deduct the 'rebate' off the purchase price when valuing the property. If the rebate is not disclosed to the lender they you're committing fraud. Also keep in mind that the Office of State Revenue will charge stamp duty on the higher of the property value or the purchase price, leading to the purchaser paying more stamp duty than necessary.
Certainly the marketing budget for an off the plan property is higher than established property, but suggests you're working as a marketing agent for developers.
My conclusion is that you're either paying at least 6% too much for an established property, or you're selling off the plan properties for developers.
I've got a lot of support for buyers agents, but I think anyone receiving a vendor rebate is not acting in the purchasers best interest. Let's also keep in mind that 4% of a $500k purchase is $20,000; about double what most BAs I've worked with charge as fees.
Hi Jacque
you have very good reputation on SS forum. if you are in Brisbane, I will definitely use your service.
re BA that I do not know, I really hesitate to fork out approx $10k for a unknown outcome.
you have very good reputation on SS forum. if you are in Brisbane, I will definitely use your service.
re BA that I do not know, I really hesitate to fork out approx $10k for a unknown outcome.
Its good to be a little hesitant. And to ask questions so you are sure when the time comes and once you make your decision you know you can trust who you work with (just like a good accountant, solicitor or Mortgage broker).
Andrew Allen in Brisbane has a very good reputation. I have known of him for years and only ever heard good reports.
Aren't you contradicting yourself here?
Hi Knightm
thanks, I have spoken to Andrew, a nice guy.
Hi Spludgey
you might be correct that I am contradicting myself.
usually when people choose a service provider, he/she would like to know as much as possible about the provider, he/she may also do google search for reviews and feedback (especially negative feedbacks), and by speaking to the provider, he/she would have some ideas of how the provider is. is it enough to formulate a view about a BA?
thanks, I have spoken to Andrew, a nice guy.
Hi Spludgey
you might be correct that I am contradicting myself.
usually when people choose a service provider, he/she would like to know as much as possible about the provider, he/she may also do google search for reviews and feedback (especially negative feedbacks), and by speaking to the provider, he/she would have some ideas of how the provider is. is it enough to formulate a view about a BA?
I used a BA to purchase 2 properties, but in choosing 2, they presented many more because I found that this particular agency was rather 'rubbery' in their figures, so I kept rejecting them until I was happy with my own calculations and figures. The properties I chose are progressing well. I still have a lot of faith in BAs, every agency is different and would use one again but my lesson here is to double check the figures yourself (Do your own DD!).
