Buyers Agents

[Mindmaster]

To date I have purchased two IP's with BAs.

The first turned out to have minimal CG and was not suitable for my intended purposes. Why? Because the BA sourced a property that was exactly what I asked for. The problem was I was an idiot and asked for the wrong property.

The second worked out much better because I was more educated, experienced and knowledgeable.

I will probably use a BA for my next IP which will in the $400-500k range because
-it will be a development site
-in an area I don't live in
-the BA will handle the negotations much better than I could
-they know market values better than I can even with loads of DD
-and more that I can't put into words right now (very late)

All this and more for $10k on a $400k plus property that be the basis of a $1 mill plus development is excellent value.

 

[Scott No Mates]

She did not purchase the site because the figures were incorrect. This is not a small operator one of the larger BA in Perth, its a worry.

You've got me confused on this one MTR. The BA packaged a development site for a client and was going to take it on herself then dropped it because it didn't meet her hurdle rate but still recommended it to her client?

 

[DavidMc]

FWIW the 'presitgous' inner Melb based BA I used took over 6 months to find me a property. In the end I suggested one.

There was definately a pecking list, and I was at the bottom of it. I was once offered a property that filtered through all the other buyers but other than that, nothing. I wanted what everyone else wanted, 2 bedder 300-400k (2007).

When I asked if there was a list I was told no, each buyer/property is unique and we match them up based on this... load of BS.

 

[MTR]

FWIW the 'presitgous' inner Melb based BA I used took over 6 months to find me a property. In the end I suggested one.

There was definately a pecking list, and I was at the bottom of it. I was once offered a property that filtered through all the other buyers but other than that, nothing. I wanted what everyone else wanted, 2 bedder 300-400k (2007).

When I asked if there was a list I was told no, each buyer/property is unique and we match them up based on this... load of BS.

... and 6 months waiting time is a problem especially if the market is rising, if you don't jump in and buy in the early stages you may end up paying too much.

I have actually only paid for one BA and the property turned out to be a winner. However, all my other interstate properties I have sourced myself and for me personally this is the only way I will go in future. Cheaper for me to fly over etc.

 

[frini]

Hi Guys,

I thought I would make a comment as I am a LREA Buyers Agent (Sydney City and Eastern Suburbs)

I must admit, in my earlier days, before I became one, I wouldn't have considered using a Buyers Agent. I used to think they were just for time poor professionals or people that didn't have a clue about property.
I liked to do most things myself, for example, the 3 investment properties I have in the local area have always been managed by myself, with few issues. I didn't trust anyone enough to handle any of my property affairs.

Things are changing in Sydney though. I can definitely see how NOT having a Buyers Agent is a significant disadvantage.

I was talking to a Selling Agent from a busy high profile office last week, and he told me over 40% of their sales this year were directly through Buyers Agents, many properties actually never hitting the market.

I secured a property for a client last Monday, the selling agent contacted me the Thursday before, the vendor was very keen to sell before Christmas and said she only contacted me as she knew I would be much more capable of helping her achieve this for her client than a private buyer would.
She was correct.
I worked full time over the next 4 days doing thorough due diligence, organising strata reports, discussing details with strata manager, organised contract negotiations, rental appraisals, inspected the property 3 times (even once at 10pm on the Friday night to make sure the noise from the pub nearby would not be an issue).
The property was a renovated 2 bed unit in Darlinghurst with Harbour Bridge, Opera House and panoramic harbour and City views. We conservatively valued it at $750-$765k based on extensive Comparative Market Analysis. My client paid $707k (and we got all the whitegoods and 2 x TV'S, and some furniture thrown in also)
She will rent this out now partly furnished to executives for over $1100 per week. So it is CF+ and she also has some instant equity.

What I am trying to say, is that if you don't have a buyers agent in this Sydney area especially, you wont get access to many opportunities at all. I know this isn't fair to the private buyers, but this is how property transactions are evolving towards, in some parts of Sydney.

BTW, my client sent me an email a few days ago,

"Hi Frank
Thank you for your email.
I really enjoyed being part of your process. I like the way you handled everything. You have such personable nature and I don't know how you have all the knowledge you do at such a young age but that's really good for you.
I'm taking a couple days to decompress and take it all in.
I woke up this morning feeling very wealthy which was nice.
Talk to you soon.
Merry Christmas.
Linda."

Reading these sort of emails makes me feel much better than when I actually get paid, I guess that's when you know your in the right occupation.

Regards
Frank

 

[TMNT]

Hi everyone just a question, I've been told two contradictory things, can someone confirm please

1. Buyers agent who has obtained their qualified in one state lets say nsw cannot call up a Vic agent and negotiate. A property on behalf of their client, and must also get a Vic qualification to be able to do anything

2. Buyers agent who is qualified in nsw can represent/enquire etc etc a buyer to buy any property in Australia,


(1) seems unreasonable because you would need almost 10 qualifications to search properties around Australia

(2) seems reasonable especially if the buyer was in nsw as well, since the buyer and buyers agent are both located in nsw and the transaction of the sourcing occurs in nsw

 

[devank]

(1) seems unreasonable because you would need almost 10 qualifications to search properties around Australia

(2) seems reasonable especially if the buyer was in nsw as well, since the buyer and buyers agent are both located in nsw and the transaction of the sourcing occurs in nsw

I think the total opposite.

(1) We are hiring a BA for their SPECIAL local knowledge. I don't want to hire a NSW BA to buy a property in QLD!

(2) Seriously? It is like the solicitor. BA and Solicitor should be from the same place where you are buying regardless of how good they are. I would prefer if they live next door

 

[TMNT]

I think the total opposite.

(1) We are hiring a BA for their SPECIAL local knowledge. I don't want to hire a NSW BA to buy a property in QLD!

(2) Seriously? It is like the solicitor. BA and Solicitor should be from the same place where you are buying regardless of how good they are. I would prefer if they live next door

I was more concerned about it from a legal perspective,

Nathan has a ba service, I doubt he has got qualifications for all states

Can a ba in nsw source a property in Vic? I'm sure they are allowed to but will they be covered by insurance , and be legit via the real estate body of both states?

 

[Scott No Mates]

Hi everyone just a question, I've been told two contradictory things, can someone confirm please

1. Buyers agent who has obtained their qualified in one state lets say nsw cannot call up a Vic agent and negotiate. A property on behalf of their client, and must also get a Vic qualification to be able to do anything

2. Buyers agent who is qualified in nsw can represent/enquire etc etc a buyer to buy any property in Australia,


(1) seems unreasonable because you would need almost 10 qualifications to search properties around Australia

(2) seems reasonable especially if the buyer was in nsw as well, since the buyer and buyers agent are both located in nsw and the transaction of the sourcing occurs in nsw

Technically, a BA is only licensed to work in the state where they are registered/licensed. The proposal to have nationwide registration was canned late last year after many years of progress all because various states thought that they are special. Some states have CPD others don't. Some states require 20+ units others just a handful for a licence etc. So yes, 10 qualifications to handle each state/territory ( unless you live on the border).

 

[S.T]

Maybe he's just done the Agents rep course in Victoria (3 modules?) and works under a licensed real estate agent in Vic. Sure that wouldn't be to hard to organise.

 

[TMNT]

Technically, a BA is only licensed to work in the state where they are registered/licensed. The proposal to have nationwide registration was canned late last year after many years of progress all because various states thought that they are special. Some states have CPD others don't. Some states require 20+ units others just a handful for a licence etc. So yes, 10 qualifications to handle each state/territory ( unless you live on the border).

really? so whats teh definition of work in? if the client is in nsw, and the BA is NSW, wouldnt that mean a NSW transaction even though teh property is in VIC,

just seems unreasoanble that someone would have 3-4 qualifications, admittedly, the vic one is 2 years working for/under someone which is a long time if you are obtaining one for each state.

ive spoken to a few BAs who work mutliple states and didnt get the impression they had qualifcaitons from each state