Buyers agents
- Thread starter ej89
- Start date
Would each of those groups listed look at each state in Australia though, or particular states
Definitely! Thanks mate
I agree
We used to own a buyers agency for many years and have sourced many great investments for people in SA.
Another thing to consider is if a BA knows what they are worth, they will lock you into a contract before they spend their time looking for you.
That means you could be committed to paying a commission and going through with a purchase once you engage a BA.
If you are looking in multiple states, does that mean you are prepared to make multiple purchases at the same time?
I would recommend one at a time.
Haha yep very different investments. Within 12km of brisbane CBD i'd be slightly negatively geared by maybe $100/week. With the Sydney ones i'd kinda need to maybe add value or add granny flat
Would rather one at a time. Just looking on east coast atm and looking at which one to start with
They all look at the states I want. I want my investments to stay within Qld, NSW and Vic for now
Hi ej
I'm a Sydney BA, longtime member of this forum, and also President of Australia's only national industry body for exclusive buyers agents at REBAA. If you check out the membership list in each state http://rebaa.com.au/members/you will find a more extensive list of BAs to talk to regarding your specific needs and what is achievable for your budget. I cannot comment on the agencies in the initial post as none are REBAA members however I would be more than happy to recommend fellow REBAA colleagues.
Some tips: ask questions, check qualifications and experience (local specific is very important in my humble opinion) ask for references and try to meet them face to face if possible. As Rolf has said, BAs operate differently depending on what you are seeking and it's not a "one size fits all" scenario. Best of luck with your search.
I'm a Sydney BA, longtime member of this forum, and also President of Australia's only national industry body for exclusive buyers agents at REBAA. If you check out the membership list in each state http://rebaa.com.au/members/you will find a more extensive list of BAs to talk to regarding your specific needs and what is achievable for your budget. I cannot comment on the agencies in the initial post as none are REBAA members however I would be more than happy to recommend fellow REBAA colleagues.
Some tips: ask questions, check qualifications and experience (local specific is very important in my humble opinion) ask for references and try to meet them face to face if possible. As Rolf has said, BAs operate differently depending on what you are seeking and it's not a "one size fits all" scenario. Best of luck with your search.
Is it necessary for them to be REBAA members? Is it illegal that they're not or is REBAA just seen as unnecessary for many BA's?
REBAA is an industry group, I believe Jacque and several others formed the group to promote openness and ethics in buyers agents, as well as to represent BAs. The alternative is that BAs are part of their local state's Real Estate Institute, which tends to focus on Real Estate Agents.
It's a great idea which I fully support. It's not an industry requirement however and there's a lot of great BAs out there who are not members.
Not being a member doesn't make one a bad or unethical BA and I dare say that being a member doesn't necessarily make someone a good BA, but I think the odds are the members are better than most.
Not every accountant is a CPA and not every engineer is a member of the AIE. It doesn't make them better or worse at their job, but these memberships does imply a certain standard.
It's a great idea which I fully support. It's not an industry requirement however and there's a lot of great BAs out there who are not members.
Not being a member doesn't make one a bad or unethical BA and I dare say that being a member doesn't necessarily make someone a good BA, but I think the odds are the members are better than most.
Not every accountant is a CPA and not every engineer is a member of the AIE. It doesn't make them better or worse at their job, but these memberships does imply a certain standard.
Hi ej,
I think you're on the right track with the criteria you have for selecting a B.A and if it's okay with you I'd like to reiterate/add a few points for you to consider as well.
1. As Rolf said, every Buyer's Advocate has strengths and weaknesses. BA's will know their preferred areas/properties better than others so it's important for you to make sure they're on the same page as you and your goals.
2. There are different types of service offerings. Some BA's will establish your brief and then provide you with a single option to purchase; other BA's will have a selection of properties they've found that fits their model; Some BA's offer development/renovation projects and finally some will offer a completely bespoke search.
There will be different levels of customer education and service with each of these models so it's worth asking BA's how they find and provide their customers with investment opportunities to ensure you're going to get what you want.
3. Make sure the BA is a member of their state regulatory body (i.e. REINSW) this will ensure you're dealing with a reputable company that adheres to a minimum standard of conduct. REBAA is a bonus although it's not a legal requirement.
Finally, talk to people you can trust. Ask BA's if it's okay to talk with their clients to get some real feed back.
...My advice is to get on the phone and talk with the companies directly. You'll learn much more in a shorter time frame by going direct.
I think you're on the right track with the criteria you have for selecting a B.A and if it's okay with you I'd like to reiterate/add a few points for you to consider as well.
1. As Rolf said, every Buyer's Advocate has strengths and weaknesses. BA's will know their preferred areas/properties better than others so it's important for you to make sure they're on the same page as you and your goals.
2. There are different types of service offerings. Some BA's will establish your brief and then provide you with a single option to purchase; other BA's will have a selection of properties they've found that fits their model; Some BA's offer development/renovation projects and finally some will offer a completely bespoke search.
There will be different levels of customer education and service with each of these models so it's worth asking BA's how they find and provide their customers with investment opportunities to ensure you're going to get what you want.
3. Make sure the BA is a member of their state regulatory body (i.e. REINSW) this will ensure you're dealing with a reputable company that adheres to a minimum standard of conduct. REBAA is a bonus although it's not a legal requirement.
Finally, talk to people you can trust. Ask BA's if it's okay to talk with their clients to get some real feed back.
...My advice is to get on the phone and talk with the companies directly. You'll learn much more in a shorter time frame by going direct.
Disagree
No disrespect to any BAs on the forum but I don't think membership of any organization is a factor that should sway a prospective client.
As a lawyer all a client should be concerned about- on the qualification front - is am I insured and do I hold a practicing certificate? Failure on those 2 is a deal breaker (and illegal for me to practice).With a BA the question is whether they are a registered agent.
Does being a member of the Law Society make me a better lawyer. Well no. I'm unaware of the Law Society kicking out a member who has paid their fees. The professional body doesn't punish wrong doers- that's for the Legal Services Commissioner in the case of lawyers and probably the Office of Fair Trading for rogue BAs.
I've seen some absolute negligent monkeys who are full accredited and members of the relevant society. All good on paper but useless in real life.
I think you need to ask what the buyer's agent will do that you can't do yourself. Then interview the agent and ask for a few referees. Most importantly make sure the agent doesn't already have another client on the books looking for the same thing- that's a conflict which whilst unethical for a lawyer to represent 2 people with competing interests is not to my knowledge unethical for an agent.
Compare their fees. How many prospects will they show you a week? If the market is hot and they can't show you any- or there are too few listings- will they still charge you after the end of a 3 month period? Is it an hourly rate or will you never see your $5k again?
Don't go for the name- go for the one who gets the results.
I guess we would have to disagree on that one to some extent.
In one of our businesses (broking side) lenders wont touch you unless you have the blessing of the grey coat brigade, I believe many other professions are similar.
While having the shingle doesnt make for excellence, at the least there is some expectation of proficiency, licensing and appropriate insurance.
I agree that the BA industry is still quite new, and also agree to choose a service provider on performance not on brownie badge, marketing clout or association alone.
Also, non membership does NOT mean sharksville............. but means you
need to do more homework I guess
ta
rolf
Hey Jake,
Are you a member of any of the state bodies? Couldn't find you in the REIV member search.
Hi simtr,
That's odd... Yes, I'm a member of the REIV
That's odd... Yes, I'm a member of the REIV
With respect to the broking industry, getting broking qualifications is simple. Realistically, if you work hard, it can all be done in a matter of a few weeks (Cert IV/Diploma/MFAA exams). Agree with you that getting a MFAA/FBAA badge IMO doesn't mean much in terms of proficiency, its just a tick-box requirement that's mandated by regulations.
The real education in the broking industry begins on the job - dealing with people, loan deals, etc. Everyone passes the qualification benchmark. Few end up being good brokers that are knowledgeable and get results.
Cheers,
Redom
Hi Pete
Just to clear it up that, as much as I would like to take credit
, REBAA was actually formed back in 2000 and I wasn't part of it back then. It was established with the goal to raise the profile of the industry and to establish guidelines for the professional conduct of real estate buyers agents nationally. From the site: http://rebaa.com.au/about/ What I like about being part of REBAA is not only the shared network and benefits of liaising with colleagues across Australia, but also knowing that consumers can rest assured knowing that our members are all appropriately licensed, insured, experienced (full members require min 24 mths BA experience) and don't list property for sale. REBAA members also need to be endorsed by other members to apply, provide references by selling agents and recent clients and adhere to our code of conduct.
There are still several "buyers" agencies out there calling themselves exclusive who actually list property on the side, clearly wading into the grey and muddy areas of conflict, if you ask me. REBAA members do not sell real estate but work on a client "fee for service" basis for purchasers.
Ej,
I certainly agree that you shouldn't choose a BA, however, on the basis of membership alone (to any industry body) - astute consumers will do their own DD and in the online world that we live in, it's pretty easy to find happy/disgruntled customers from pretty much every business out there- google can be your best friend at times
Membership to REBAA (or state REIs) certainly isn't mandatory, as others have already pointed out, however at least you can check off some boxes and have some peace of mind when you do select a REBAA member. Note I am obviously biased but I am passionate about this industry (hence my involvement for the past 3 yrs as Pres
) and ensuring that consumers don't get taken for a ride. Asking on forums such as this is a great start and I wish you all the best in your journey, wherever that may take you!
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Agree 100% and references are very important. Asking for written ones as well as phone no's can be really helpful here. Most reputable BAs will not take you on as a client if they already have a client with the same criteria, but ask the question as there are some that do (they have various strategies of handling this if you do end up competing). We let clients know and sometimes lose them as a result to other BAs (if they don't want to wait), but that's ok as I only refer to them to good operators
I'd add here that, in almost a decade of business, I've never once had a full search client take up my offer to pay an hourly rate instead of an agreed fixed fee upfront. Unlike other industries who charge this way it's simply ineffective for what we do. We work for clients on results/outcomes (based on their brief), not for time spent. We've found and negotiated great buys for clients in days whilst others have taken 4+ months- it can be a lottery at times due to any no. of factors which result in a final acquisition.
The no. of listings inspected also isn't always an indicator of how much time the BA has spent. We recently had a high-end client ($5m+) for whom we saw less than 20 properties during the contract period yet this was 4 times as many as she had been able to see during the previous 18mths of self-searching. Most were off-market and my BA worked diligently and consistently over 4 mths with her contacts to locate these (also via canvassing), assess and organise viewings. Some clients briefs are simply more challenging than others...
As for the $5K (assume you're referring to the retainer? Though most BAs charge less than this in my experience) I think it's valid to point out that we are a service-based industry and charge accordingly. Any BA who works on a "no property no fee" basis is, in my opinion, probably going to go bust very quickly in this business, de-valuing the service that he/she offers.
Agree here too, though most buyers agencies are smaller than selling agencies so you should end up with a very personal level of service. It will depend on other factors, naturally, but it's not necessarily those who advertise widely or have the biggest ads that are the best- as in all walks of life.
My apologies Jacque. I think your passion and leadership for the REBAA is a credit and I definitely do support your work.
No need to apologise Pete.... at least you know I'm not SO old now
Thankyou for your lovely support too
