Buyer's agents?
- Thread starter CarolineP
- Start date
Hi Caroline
I personally think that using a buyers agent is not a bad idea at all for a new investor. It should mean that their first IP will be bought well and this should enable future growth allowing them to buy again.
For what it is worth, we used a buyers agent for our latest IP in Perth simply because we did not know the market or conditions.
Dale
I personally think that using a buyers agent is not a bad idea at all for a new investor. It should mean that their first IP will be bought well and this should enable future growth allowing them to buy again.
For what it is worth, we used a buyers agent for our latest IP in Perth simply because we did not know the market or conditions.
Dale
Hi Caroline, what do you want to know about UCV?
It stands for Unimproved Capital Vaule and realtes to land values, basically it's the value of the land without the improvemnts (the house or whatever being the improvements).
In Queensland I think the UCV's are done every three years (please feel free to correct me if this is not right).
It gives you an idea of what the land is worth without the house on it, I recently saw a property advertised in Hawthorne for 'land value only'.
Im sure there are some forum members who can share information on buyers agents, or try a search. I believe you can do alot of the research yourself.
Hope this hepls.
It stands for Unimproved Capital Vaule and realtes to land values, basically it's the value of the land without the improvemnts (the house or whatever being the improvements).
In Queensland I think the UCV's are done every three years (please feel free to correct me if this is not right).
It gives you an idea of what the land is worth without the house on it, I recently saw a property advertised in Hawthorne for 'land value only'.
Im sure there are some forum members who can share information on buyers agents, or try a search. I believe you can do alot of the research yourself.
Hope this hepls.
Buyers Agents... emotions run high on this site regarding this.
In a nutshell, my experience:
I used one,
I learned a lot,
I felt it was worth the outlay for me personally
There are different services. You can do the search yourself and then get them to negotiate for you (or bid at auction). The use of a buyers advocate is not necessarily synonymous with bypassing due diligence on the part of the buyer/investor. BA act upon your instructions so you need to be very clear on what you want (which of course involves doing the research yourself and making the decisions yourself). Contrary to some people's perception you do not hand over responsibility at all. I see it in the same way as me using an accountant/conveyancer for their knowledge and skill - it comes at a price but can save you too.
hth & good luck!!!
In a nutshell, my experience:
I used one,
I learned a lot,
I felt it was worth the outlay for me personally
There are different services. You can do the search yourself and then get them to negotiate for you (or bid at auction). The use of a buyers advocate is not necessarily synonymous with bypassing due diligence on the part of the buyer/investor. BA act upon your instructions so you need to be very clear on what you want (which of course involves doing the research yourself and making the decisions yourself). Contrary to some people's perception you do not hand over responsibility at all. I see it in the same way as me using an accountant/conveyancer for their knowledge and skill - it comes at a price but can save you too.
hth & good luck!!!
DaleGG said:
Hi, Dale
Can you please tell me the buyers agent you used in Perth. I have a friend in the US who needs more assistance than I can provide.
Thanks!
Hi
Sure. We used:
Trevor Dunkley
Property Wizards
http://www.propertywizards.com.au/
They were OK.
Dale
Sure. We used:
Trevor Dunkley
Property Wizards
http://www.propertywizards.com.au/
They were OK.
Dale
itinerantotter said:Hi, Dale
Can you please tell me the buyers agent you used in Perth. I have a friend in the US who needs more assistance than I can provide.
Thanks!
Thanks, Dale.
Cheers
Cheers
I am still divided on using BA's.
If they are as good as they claim woudn't they be doing this Full Time for themselves ? If they have been doing it for years ( you would hope so for track record purposes ) why would they still be around offering their services ?
If you paid them an upfront fee and they happen to find a property with excellent CG potential and were able to negotiate an excellent price why would they tell you about it ?
It's like asking someone else to build your financial plan and wealth. Sure you can seek help and guidance but at the end of the day it's up to YOU.
Anyways ... my 2 cents worth ...
If they are as good as they claim woudn't they be doing this Full Time for themselves ? If they have been doing it for years ( you would hope so for track record purposes ) why would they still be around offering their services ?
If you paid them an upfront fee and they happen to find a property with excellent CG potential and were able to negotiate an excellent price why would they tell you about it ?
It's like asking someone else to build your financial plan and wealth. Sure you can seek help and guidance but at the end of the day it's up to YOU.
Anyways ... my 2 cents worth ...
I've never used a BA but have certain reservations about their services.
I think if you were really unsure and needed the reassurance, then as long as you think you gained value for $$ from using a BA then it may be a good thing.
My opinion: considering the vendor needs to factor in REAs commission & other fees to sale price, if you add an equivalent sum on your side of the deal then perhaps you undervalue your own coin.... And, Why are brokerage fees so much better than anything to do with property??? I can never comprehend this... oopps sorry, talk property only Fee comparison with other asset classes is not Taboo in my house.
My cents.... which will probably not sit well with some ppl
I think if you were really unsure and needed the reassurance, then as long as you think you gained value for $$ from using a BA then it may be a good thing.
My opinion: considering the vendor needs to factor in REAs commission & other fees to sale price, if you add an equivalent sum on your side of the deal then perhaps you undervalue your own coin.... And, Why are brokerage fees so much better than anything to do with property??? I can never comprehend this... oopps sorry, talk property only
Fee comparison with other asset classes is not Taboo in my house.My cents.... which will probably not sit well with some ppl
agents
I think it depends on where you are buying. If you are buying in your own city you should do your own research. Pick up an area that suits and learn it like the back of your hand.
If you are looking intersatate or overseas then consider using a buyers agent. I have been buying properties for people in New Zealand for some time and have just started on the United States. The cost for an individual to travel even to New Zealand and commit the time required to research the market properly would exceed any fee that I would normally charge. People make mistakes becuase they do not reseach the market.
To buy more effectivly in America I will be moving their in the next few months.
I think it depends on where you are buying. If you are buying in your own city you should do your own research. Pick up an area that suits and learn it like the back of your hand.
If you are looking intersatate or overseas then consider using a buyers agent. I have been buying properties for people in New Zealand for some time and have just started on the United States. The cost for an individual to travel even to New Zealand and commit the time required to research the market properly would exceed any fee that I would normally charge. People make mistakes becuase they do not reseach the market.
To buy more effectivly in America I will be moving their in the next few months.
I haven't yet used a BA, but I would.
When I was actively buying a few years ago, it was easy. You stuck a pin in the map, and you could make money.
If you had some more time to research the market, you could make more.
Now I suspect that you can make money. You just have to know your market well- and know that that market has a strong chance has a good chance of rising. Very many markets now will not.
A good BA can help you determine that market. And can trade their ecpertise for some of your $$.
How many of your $$ you trade from some of their $$ expertise is for you to decide.
Like many professionals, you pay to have a good team.
When I was actively buying a few years ago, it was easy. You stuck a pin in the map, and you could make money.
If you had some more time to research the market, you could make more.
Now I suspect that you can make money. You just have to know your market well- and know that that market has a strong chance has a good chance of rising. Very many markets now will not.
A good BA can help you determine that market. And can trade their ecpertise for some of your $$.
How many of your $$ you trade from some of their $$ expertise is for you to decide.
Like many professionals, you pay to have a good team.
I used a BA to purchase my Perth property a few months back. I didn't have the time to travel to WA and I didn't know the area well, again was restricted on time to research. I too used Property Wizards in Perth and they were great. At the rate that the market was going in WA back then (and probably still is), I had them placing offers on a weekly basis and kept missing them. If I hadn't used them I would never have ended up buying as you really needed someone on the ground. Having the connection to the agents helped. Plus they did all the inspections and organised repairs and so on. The money they saved me on the purchase was really their fee cost however I felt they saved me a lot more than just cash.
When I bought in Qld though I did it myself as I knew the area and felt that the BA fees did not represent the value they did in WA. They were higher and I still had to do a lot of the running around myself.
IMHO BA's can be very valuable. They may not be suitable for all circumstances so just use them when appropriate.
LM, I thought this initially but many of them will tell you, they are like the rest of us. They still only have the income, cash and cashflow they have...they can't afford to do any more than the rest of us! They can find them but they may not have the money to support them. I am sure they would keep the best deals to themselves if they can support the costs/deposits/mortgages.
Also, you will find many BA's are making a living from something they love. They really enjoy working in property every day and helping others to achieve what they have. It's rewarding. I have had many conversations with BA's after I have gotten to know them a bit better and they want to share their skills with other. For a fee of course. But we all have to make a living some how!
When I bought in Qld though I did it myself as I knew the area and felt that the BA fees did not represent the value they did in WA. They were higher and I still had to do a lot of the running around myself.
IMHO BA's can be very valuable. They may not be suitable for all circumstances so just use them when appropriate.
LearningMan said:If they are as good as they claim woudn't they be doing this Full Time for themselves ? If they have been doing it for years ( you would hope so for track record purposes ) why would they still be around offering their services ?
If you paid them an upfront fee and they happen to find a property with excellent CG potential and were able to negotiate an excellent price why would they tell you about it ?
LM, I thought this initially but many of them will tell you, they are like the rest of us. They still only have the income, cash and cashflow they have...they can't afford to do any more than the rest of us! They can find them but they may not have the money to support them. I am sure they would keep the best deals to themselves if they can support the costs/deposits/mortgages.
Also, you will find many BA's are making a living from something they love. They really enjoy working in property every day and helping others to achieve what they have. It's rewarding. I have had many conversations with BA's after I have gotten to know them a bit better and they want to share their skills with other. For a fee of course. But we all have to make a living some how!
I think if you were really unsure and needed the reassurance, then as long as you think you gained value for $$ from using a BA then it may be a good thing.
My cents.... which will probably not sit well with some ppl
Indeed. I take exception to the perception that individuals engaging a BA, are unsure and need reassurance.
My buyers agent acted on my instructions. (!!!!!!!!!)
My BA no more made the investment for me than my accountant spends my earnings. They are each employed for their expertise.
People implying I don't know what I am doing because I added a BA to the team who contribute to my success should just get over themselves.
In the same vein....I don't tune my car but I drive it and make it go where I want. Baby, I'm drivin' the show!
If they are as good as they claim woudn't they be doing this Full Time for themselves ? If they have been doing it for years ( you would hope so for track record purposes ) why would they still be around offering their services ?
If you paid them an upfront fee and they happen to find a property with excellent CG potential and were able to negotiate an excellent price why would they tell you about it ?
Knowledge and risk profiles are very different things. Just because a person knows a lot about property, for example, doesn't mean they are game to take on a mortgage and buy it themselves. Some people are excellent traders when it comes to the bank's money but can't do it themselves. I've seen people who handle multi-million dollar deals for companies but balk at taking on a couple hundred k of mortgage.
Alex
