It's not a small rural area- quite large.
We have several properties which have had excellent growth- one was CF+ from the start as well. But we don't have income from jobs now to service such properties, so we were looking to supplement income.
Buyers Agents
- Thread starter D.T.
- Start date
We have several properties which have had excellent growth- one was CF+ from the start as well. But we don't have income from jobs now to service such properties, so we were looking to supplement income.
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$9900 in buyers agents fees isn't unreasonable, it's fairly common for people to pay about $8k - $10k for a comprehensive buyers agency service. Others have stated that this is a high price to pay for a $245k property, but I think the fee is irrelevant to the value of the property given they don't charge $20k for a $500k property. It's a fee for service, not a fee based on the value of the investment.
Personally I do think buyers agents are worthwhile, especially for remote purchases. If you can't travel and put in the time to do the research, it stands to reason to get a local expert to do this for you. I've got clients that have used all of the regular BA contributors to this forum with great results. I've also used some of them for my own acquisitions. I probably wouldn't use a BA to source property in my own backyard, but your own backyard may not be the best place to be buying at a particular point in time.
$9900 in buyers agents fees isn't unreasonable, it's fairly common for people to pay about $8k - $10k for a comprehensive buyers agency service. Others have stated that this is a high price to pay for a $245k property, but I think the fee is irrelevant to the value of the property given they don't charge $20k for a $500k property. It's a fee for service, not a fee based on the value of the investment.
Personally I do think buyers agents are worthwhile, especially for remote purchases. If you can't travel and put in the time to do the research, it stands to reason to get a local expert to do this for you. I've got clients that have used all of the regular BA contributors to this forum with great results. I've also used some of them for my own acquisitions. I probably wouldn't use a BA to source property in my own backyard, but your own backyard may not be the best place to be buying at a particular point in time.
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As for BA fees...my opinion is I will let some other mug pay for single residential property. Each to their own....I almost tempted to run a BA agency with $5500 service fee irregardless of property cost!
I think I can make a nice living....
As for BA fees...my opinion is I will let some other mug pay for single residential property. Each to their own....I almost tempted to run a BA agency with $5500 service fee irregardless of property cost!
I think I can make a nice living....
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I think at that price most BAs would go broke.
As for BA fees...my opinion is I will let some other mug pay for single residential property. Each to their own....I almost tempted to run a BA agency with $5500 service fee irregardless of property cost!
I think at that price most BAs would go broke.
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There are always some people saying good and some people saying bad about buyer agents.
The way you talk seems you are more leaning towards engaging with engaging a buyer agent.
Why don't you just do it and tell us what your experience like later on.
Personally, I think it's all part of property investing journey, you just have to enjoy it. Nothing is guarantee. but if you keep doing something you enjoy and passionate about you will get there.
Recently, I am helping a friend of mine buying a property. I am acting as my friend's buyer agent. I never ask for money from my friend, but she gave me $5,000 as thank-you payment or education fee payment.
I think sure you can certainly learn something from [using a buyers agent] service.
Good luck and tell us how you go.
The way you talk seems you are more leaning towards engaging with engaging a buyer agent.
Why don't you just do it and tell us what your experience like later on.
Personally, I think it's all part of property investing journey, you just have to enjoy it. Nothing is guarantee. but if you keep doing something you enjoy and passionate about you will get there.
Recently, I am helping a friend of mine buying a property. I am acting as my friend's buyer agent. I never ask for money from my friend, but she gave me $5,000 as thank-you payment or education fee payment.
I think sure you can certainly learn something from [using a buyers agent] service.
Good luck and tell us how you go.
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As for going broke....look at the numbers if you have low overheads. Based on sourcing about 4-10 property per month. I makes sense.
At 10k per pop......sourcing just 40 properties (3.33 per month) it brings in 400k in revenue. At 5k a pop and assuming over heads of 20k per year. you are still making a comfortabled living.
As for going broke....look at the numbers if you have low overheads. Based on sourcing about 4-10 property per month. I makes sense.
At 10k per pop......sourcing just 40 properties (3.33 per month) it brings in 400k in revenue. At 5k a pop and assuming over heads of 20k per year. you are still making a comfortabled living.
I think at that price most BAs would go broke.
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Are you sure you want to say this? Most people expect performance when they pay 10k.
You do realise that 10k is a lot of money for some people?
You do realise that 10k is a lot of money for some people?
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No matter what you do - use a BA or not - make sure you do your own numbers and comfortable with a purchase. You need to do your own due diligence and be comfortable with a property someone is proposing to you - so you don't just rely blindly on what they are suggesting and get burnt!!
As Sash noted earlier, follow your intuition!! If there is a nagging feeling about something, don't go with it.
As Sash noted earlier, follow your intuition!! If there is a nagging feeling about something, don't go with it.
Yes it is great intuition...I sometimes have 4 conversations with myself with 4 different personalities.......just kidding.
Agree with what you are saying...too many sheep out there...I blame the influx of NZers.
Agree with what you are saying...too many sheep out there...I blame the influx of NZers.
Hi Sash,
I understand what you mean.
A couple of weeks ago, there was a builder engages a friend (my friend is a real estate agent) of mine to sell his apartments.
The market price of the unit was about $550,000, but the builder wanted to sell it at $600,000.
My real estate agent friend didn't want to sell, becuase it would be hard to sell simply the builder was asking $50,000 above the market.
However, a client of his asked him if he has anything in that particular area for sale. My friend told his client, there is an apartment and the builder wanted to sell, but the price was way higher than the market price.
His client said don't worry I want to buy, put me in touch with the builder and his apartment.
My friend reluctantly put his client forward to the builder and warned his client the valuation would be the problem when he applying for the loan.
His client says "I don't like a bank loan, I don't need a bank loan, I will buy in cash, I like the area and I want to live in this area "
The builder sold the property, my friend got the commission, his client is happy.
Sometimes I see people over pay handreds of thousands for a property.
I never really understand it, I guess price is not always the issue.
I guess we are living in a very strange world.
I understand what you mean.
A couple of weeks ago, there was a builder engages a friend (my friend is a real estate agent) of mine to sell his apartments.
The market price of the unit was about $550,000, but the builder wanted to sell it at $600,000.
My real estate agent friend didn't want to sell, becuase it would be hard to sell simply the builder was asking $50,000 above the market.
However, a client of his asked him if he has anything in that particular area for sale. My friend told his client, there is an apartment and the builder wanted to sell, but the price was way higher than the market price.
His client said don't worry I want to buy, put me in touch with the builder and his apartment.
My friend reluctantly put his client forward to the builder and warned his client the valuation would be the problem when he applying for the loan.
His client says "I don't like a bank loan, I don't need a bank loan, I will buy in cash, I like the area and I want to live in this area "
The builder sold the property, my friend got the commission, his client is happy.
Sometimes I see people over pay handreds of thousands for a property.
I never really understand it, I guess price is not always the issue.
I guess we are living in a very strange world.
This would have to be the best thing today i have read.Too many people take the lazy way in life,buying properties through other people.Personally,sorry to be blunt,but who in their right mind pays large sums of money to people they do not know,for advice on how to spent hundreds of thousands of dollars.Sorry people,i cannot get my head around this.
Ditto, and no rent increase for 5 years , escualating bodycorp fees and rates, now needs new carpet and paint.
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Just interested if you have ever sold a property. If you have (or ever will) did you use a real estate agent or did you do it all yourself? After all, this would be paying someone you don't know large sums of money and involves hundreds of thousands of your dollars.
I think it is too easy to generalise from one's own specific circumstances and to apply it to other people. Not everyone has the time, inclination or knowledge to do everything themselves. Sometimes it is well worth leveraging your time and money by utilising others with expertise in a certain area. For example, I have heard of people who want to do their own conveyancing and can't believe that other people pay for that service. There is no legal reason why you can't do it, however, most people don't have the time to do all the investigations and to fully understand the process.
If you use a Buyers agent you are essentially outsourcing your decision making process to someone else and I would expect to pay a reasonable amount for this service. $5-$10K would be reasonable.
Using a buyers agent doesn't guarantee success or performance, they just identify potential deals which you have to assess using your own DD.
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Using a buyers agent doesn't guarantee success or performance, they just identify potential deals which you have to assess using your own DD.
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Lets take stock Takestock....
Selling a property involves say aobut 10k for the sale of an average property in Sydney and a once off fee. Generally if the agent does not perform you do not pay if oyu have structured the contract properly.
As for conveyancing ...dangerous to do it yourself particularly if you get it wrong
Now for buying properties. and not having the inclination or time to do it themselves. I think is code for laziness.
Question...why would you want to hand $100s of thousands in terms of investment to someone else.
Where I sit I can't recall anyone who has been successful and going onto a SUCCESSFUL property portfolio without applying effort.
It is quite funny that the people responding to the posts defending using BAs are novices....
Selling a property involves say aobut 10k for the sale of an average property in Sydney and a once off fee. Generally if the agent does not perform you do not pay if oyu have structured the contract properly.
As for conveyancing ...dangerous to do it yourself particularly if you get it wrong
Now for buying properties. and not having the inclination or time to do it themselves. I think is code for laziness.
Question...why would you want to hand $100s of thousands in terms of investment to someone else.
Where I sit I can't recall anyone who has been successful and going onto a SUCCESSFUL property portfolio without applying effort.
It is quite funny that the people responding to the posts defending using BAs are novices....
Sounds to me you are a BA.
Kudos Kudos Kudos.
That's not true actually
