Buyers Agents

[D.T.]

[Edit by admin - posts extracted from a deleted thread ... original poster was asking for advice about buyers agents]

Slightly different angle here... but may I ask what makes you think you need a buyers agent?

I'm not saying [that buyers agent's] service is neither good nor bad as I havent used it, but what's your reason for not being able to buy yourself? Perhaps getting help overcoming that reason may or may not be a better outcome?

 

[one world]

what's your reason for not being able to buy yourself? Perhaps getting help overcoming that reason may or may not be a better outcome?

Wise words dtraeger.

I have not met a single successful investor who, ten years after hiring a buyers agent, did not regret his or her decision.

Buying an IP is not rocket science folks. Do your own homework. Don't fork out ten grand to somebody who is not a blood relative. He or she will take your money and will accept no responsibility when things go sour.

Buying an IP is common sense. If you are buying in the lowest decile of the market (as Nathan does) its hard to go wrong in the long run.

 

[redwing]

Wise words dtraeger.

I have not met a single successful investor who, ten years after hiring a buyers agent, did not regret his or her decision.

Buying an IP is not rocket science folks. Do your own homework. Don't fork out ten grand to somebody who is not a blood relative. He or she will take your money and will accept no responsibility when things go sour.

Buying an IP is common sense. If you are buying in the lowest decile of the market (as Nathan does) its hard to go wrong in the long run.

Being a blood relative is no guarantee of accepting responsibility either

 

[spludgey]

[OP], just relax and let the buyer's agent thing go for at least a month or two.
In that time, you should do what many of us do or have done at one stage: Read. Read anything you can get your hands on (except advertising materials), books on real estate, magazines, this very forum, just read all you can.
If you have any specific questions, ask them on here, but make sure you educate yourself.

Personally, I would never use a buyer's agent, but I think that it does work for some people.

Once you know a bit more about real estate, you can make up your mind if you still think that you need a buyer's agent or not. In the meantime, read some Lomas and Somers.

 

[spludgey]

Just read all you can. As I said, I think Jan Somers and Magaret Lomas are good starts. But any bulk pack will give you a start.
Look on ebay, there's plenty there. Some random ones here:
1
2

 

[mflying]

[OP] mentioned that you parted $10000

is it true?? if it is, what is your target buying price range?? what is your strategy?

someone was (From SS)telling me that they paid BA $10K to find and secure a property worth $280K.

10K buyer fee is lot of money for $280K purchase IMHO.

I am sure people on this forum will defend Byers agents, but seriously it is seller's market at the moment.

on other note, i help a guy (he is on this forum, not sure of his username) to secure a property in QLD, it is a corner block, multi dwelling development site with existing house. Property wasn't even listed on a market and i think (He and other on this forum) think that he got a bargain.. agent was thinking to list at $245K. i negotiated price for him and got the property for $223K..

He was on a phone with me almost an hour for 3 days.

It didn't cost him $10k and to be completely transparent, i didn't ask him for so called "spotters fee" at all nor i am expecting one.


What i am trying to say that, before any one parts large sum of money for BA, please do your own research. Most important thing is work out "YOUR STRATEGY" and "End Game"

 

[Propertunity]

Sorry I can't shed any light on [that buyers agent] service, but just as a general comment on paying for ANY service of ANY kind, it is not good to part with ALL the money up-front.

Most BAs would charge a retainer fee of 20-30% of the total fee but the balance of the fee should (to my way of thinking), be geared towards the success fee - i.e. when you've actually achieved securing the property that you hired the BA for in the first instance!

 

[mflying]

hi [OP],

if you want to disclose more details,

i.e what you are looking to buy and where??

Ppl on this forum (i am sure i will be) able to help you in right direction!

i can assure it wont cost you $10K or even a dollar for advice from SS members.

 

[DavidMc]

I have used a buyers agent once, and it was the worst property investment I have ever made to date. Terrible negative cash flow and less than 3% growth PA (going on 6 years now). Not saying all BA's are bad, just sharing my experience. Didn't feel they added any value at all and I regret not just doing it myself.

I haven't written off BA's altogether though.

 

[spludgey]

interesting purchase in qld, may i ask what state you are from? only because i have read a few posts on here about people purchasing properties in another state without seeing them? what are your thoughts on this?

Edit: Just realised that I quoted the wrong person and misread the post. Oh well, maybe it's me that should try and read more.

I certainly wouldn't do that for my first investment property. The reason a lot of people purchase in different states is land tax. Once you get over a certain land value ($406k in NSW from memory), you have to pay a percentage of the value over that threshold each year.
As this is going to be your first IP, this is not of concern to you.

So if you want to buy in QLD, fly up there for a weekend and have a look at places. But prior to doing that, have a look at all properties that fit your criteria in the area on realestate.com.au, this should at least be 100. Also have a look at rentals in the area and reduce them by 10%, this will give you an idea of what the market rent is like, don't be charmed by a high claimed rental on a property that's being sold or a rental guarantee.
When you get up to QLD, physically inspect at least 10 properties that made it to the top of your list, preferably 20+.
Pick your favourites and let the fun begin.
While you're a fair way away from that, when making an offer, always add an expiry clause into it. Personally, I like 48 or 72 hours.

Feel free to ask any (seemingly) stupid questions that come to mind on here. I'm happy to pass on whatever knowledge I have and many others have helped me on here in my learning process.

 

[jackbak]

I have used a buyers agent once, and it was the worst property investment I have ever made to date. Terrible negative cash flow and less than 3% growth PA (going on 6 years now). Not saying all BA's are bad, just sharing my experience. Didn't feel they added any value at all and I regret not just doing it myself.

Which suburb did the BA recommend you buy in Dave?

 

[mflying]

Edit: Just realised that I quoted the wrong person and misread the post. Oh well, maybe it's me that should try and read more.

I certainly wouldn't do that for my first investment property. The reason a lot of people purchase in different states is land tax. Once you get over a certain land value ($406k in NSW from memory), you have to pay a percentage of the value over that threshold each year.
As this is going to be your first IP, this is not of concern to you.

So if you want to buy in QLD, fly up there for a weekend and have a look at places. But prior to doing that, have a look at all properties that fit your criteria in the area on realestate.com.au, this should at least be 100. Also have a look at rentals in the area and reduce them by 10%, this will give you an idea of what the market rent is like, don't be charmed by a high claimed rental on a property that's being sold or a rental guarantee.
When you get up to QLD, physically inspect at least 10 properties that made it to the top of your list, preferably 20+.
Pick your favourites and let the fun begin.
While you're a fair way away from that, when making an offer, always add an expiry clause into it. Personally, I like 48 or 72 hours.

Feel free to ask any (seemingly) stupid questions that come to mind on here. I'm happy to pass on whatever knowledge I have and many others have helped me on here in my learning process.

+1

one shouldn't really buy site unseen or at least with out having B & P report!

I put offer on property unseen based on what i think it is right value and subject of finance and "satisfactory" B&P report. then i fly interstate, inspect the property, wait for B&P report, if all ok then go ahead.

I think this what exactly what the forum member did (whom i recommended) the property to buy.

I am happy to loose money on Flight cost + B&P cost than paying $10K for BA.

That is just me.

 

[sash]

[OP]

You need to take personal accountability. I would be say that [the buyers agent] is running a business where they will charge as much as they can for his services.

Having said that ...I think paying 10k for a 280k property is not wise. I personally am not a fan of MOST buyers agents....if I did use one it would only make sense on deals which are returning 20% plus under value to the market. I find some of the claims by buyers agents about how much the property is worth ridiculous. I would be asking for proof.

[deleted reference]

I also would look at the credentials at the people who are BAs or financials planners, mortgage brokers etc. Too many spruikers out there in my opinion.....some may have made money originally in property...but when they have lots of uneducated masses willing to pay lots of money for advice....that is when the dollars start rolling in. ASIC is trying to curtail some of this.

There is no such thing as a free lunch or easy way....successful people typically will do extreme due diligence before they hand money over. If I am hiring a BA I would want evidence of what they bought things for. The I would check on OntheHouse on what similar properties sold for. I would never take the results on face value of what a BA says.

I guess....there are too many Pied Pipers leading leemings.....

Hope this helps....

 

[Aaron_C]

Buying property is not rocket science. Before you depart with 10k can you please just think about what you want to do...

 

[sash]

Mate I always follow my gut...if it feels wrong take a breather and do more due diligence. What you are feeling is good thing..you just need to process it....

If information is not forthcoming ...or they say they are too busy because they have too many clients ...walk away!!

For example...I try be annoying when I select builders. If they are helpful and are patient and provide all the relevant information then I am onto a good one. If they are not responding...walk away....save money time and frustration later on.

Too many people on these sites are rank amateurs ..they employ others because they are not willing to do the hard yards to get educated (mostly free) and start selecting properties themselves. I am astounded that some people have parted with tens of thousands of dollars at seminars....when they could have bought a Margaret Lomas or Jan Somers book which will given them 70% of the knowledge they need.

 

[geoffw]

I've done very well through a property sourced by [a buyers agent]. For me, it was well worth the fee.

 

[sash]

Great...would you care share where the property is, when it was bought and how much you think it is worth now?

Bear in mind any one who bought the low end of the market in Sydney over 6 months aog would have made money. Just natural cycle of the market...no rocket science there.

I've done very well through a property sourced by [a buyers agent]. For me, it was well worth the fee.

 

[D.T.]

Great...would you care share where the property is, when it was bought and how much you think it is worth now?

Bear in mind any one who bought the low end of the market in Sydney over 6 months aog would have made money. Just natural cycle of the market...no rocket science there.

He linked the thread which had all the details lol

 

[geoffw]

Great...would you care share where the property is, when it was bought and how much you think it is worth now?

Bear in mind any one who bought the low end of the market in Sydney over 6 months aog would have made money. Just natural cycle of the market...no rocket science there.

Most information is in the thread I've linked to.

We're two weeks off settlement still.

It's purely a cashflow play- we're not after CG at this stage.

 

[sash]

Not a fan of small rural areas....liquidty is poor though cashflow is good.

It note it is commercial.....that in itself carries the risk of poor CG. You need both for healthy portfolio....

Most information is in the thread I've linked to.

We're two weeks off settlement still.

It's purely a cashflow play- we're not after CG at this stage.