Buyers Agents

[Propertunity]

Mmmmm.

Plenty of reasons to use a BA. Plenty of reasons not to. Its a free choice - take it or leave it.

Reasons why clients have used our services in the past (when I've asked them why?) - their words, not mine.
1. I'm Asian and I can't get white Anglo male real estate agents to take me seriously. They don't put my offers to vendors, I think I'm missing something.(Unfortunately that's true and its not nice)
2. I'm no good at negotiating.
3. I've purchased property before and when I look at what I've purchased, it has not worked out to be the greatest investment.
4. I get nervous bidding at auction and I need someone unemotional to stop me getting carried away and overpaying.
5. I've tried to buy for 6-12 months but I keep getting pipped at the post - someone else buys before the Open home or I'm the underbidder at auction.
6. I'm unsure of the true value of the property.
7. I'm in some overseas location and I can't afford to keep flying over there just to miss out on property by the time I get there.
8. I'm working 80 hours a week as a highly paid professional, I earn $2K per day, - I want to outsource the home buying thing to someone else who I can just pay to get the job done.
9. I value my family time on week-ends, kids at sport etc. I don't want to spend my Saturdays looking at property, but I know I need to get one.
10. I've been wanting to buy an investment property since I was 25 years old. I'm now 35 years old and I still have not bought anything. I figured if I paid you money, you could make it happen for me. I am clueless when it comes to selecting a good investment property.
11. I'm a newbie. I don't want to make a mistake on my first IP. Can I use the Buyers Agent exercise to buy me a good property plus help me learn so I can do it for myself next time?

.....I could go on.

The fact is that if you have the time, the energy, the inclination & skill, then you don't need a BA. But there are a LOT of people that recognise their lack of some or all of these things and do something about it. (if they didn't, I'd be out of business)

 

[Propertunity]

Reasons some smart investors, who know how to leverage their time, have used our BA services:

1. We looked for 4 months to find a sub-division opportunity for a Dr in Singapore. Purchased for $580K a house on a large corner block. After subdivision goes thru, house on smaller block is worth $550K. Newly created block is worth $250K. Client paid me $10K so he can make $200K. Was this an good deal for him?

2. Found a block of 3 units OOT, suitable for reno & strata title. GP in the deal was $200K. Client paid me $10K so he can make $150K. Was this an good deal for him?

3. Purchased an unfinished dual occ at auction for $310K. Client spent $100K finishing off reno on older house, driveways and garages. Reval came in at $520K - over $100K of equity added. Rents for $680pw. Good deal for $10K for a BA fee or not?

4. Won a tender (advertised as EOI) for a client who paid $458K for a 3brm house with a back yard with its own street access already on 2 x titles. House worth $320K. Back yard land worth $200K = $520K total. Equity from Day 1 = $60K. Good deal for $10K for a BA fee or not? (this was a matter of knowing the EOI process that frightened most buyers away)

5. Paid $550K at auction for a client standing beside me, (literally with his stomach in knots from being so nervous). Same property next door sold for $615K a few weeks later. Worth paying a $1K auction fee to a BA for $65K equity increase in only a few weeks or not?

That's all for me for now.
Cheers. Alan

 

[spludgey]

I was wondering if BAs might be able to post a few actual deals that they've done? I think actual results would speak for themselves.

Personally, I'm a little bit on the fence at the moment. I'm not against BAs, but I don't know whether I would advise people to use one either.
At this point in time I would not consider using a BA, simply because I like doing it myself and for a $250k property a $10k fee is a fair percentage.
I would however consider using a BA once I move into commerical properties, as I'm a novice at that and the purchase price is likely to be much higher.

 

[geoffw]

I didn't actually go looking for a buyers agent as such. Nathan had posted a deal on Facebook, I contacted him. It turned out that the deal was just beyond my capabilities. He put up a couple more deals which I rejected- and then the one I accepted.

I'm happy with something which which gives me $12K pa after all costs, and I'm OK with paying him the (borrowed) fee. It's a great ROI for me.

It is in a large rural centre, and is commercial- it's something that I wouldn't have been looking for by myself.

 

[Propertunity]

In relation to retainer fees that BAs charge, you said:

....Most will tell you ''time is money'' we all know time is money and nobody should be working for free, but if you are good at your job and the client has signed an agreement with you that should be secure enough that he/she is not wasting your time.

Sorry, but it does not work that way in RE. Many of my selling agent contacts bemoan the fact that they can sign up a vendor for the sale of a property, write an advert, put up the listing on re.com and domain, erect a For Sale sign, conduct a number of Open for Inspections - AND then have the vendor Withdraw from Sale.

In the case of me (us now - there's 4 of us) as a BA, we don't need the money. What we need is some show of committment from an intending purchaser. Anybody can sign an agreement. I like to see some 'skin in the game'.

 

[westminster]

I have used a BA last year and that was even for a local purchase in an area I knew well. It was simply because the listing REA refused to take my offer therefore the easiest way to get the deal done was my BA to go direct to the owners. For me it worked well and I got the deal.

Would I use a BA in future? Yes I would definitely consider it for an interstate purchase for the following reasons:
- I would need help and advice on which streets are the good ones
- may need them to undertake inspections of possible properties
- liaise with local REs that they have a relationship with about possible properties
- bid/negotiate for me on a property
- advise about different selling practices - ie section 32s in Victoria etc

I am a confident, knowledgeable investor but I cannot be expected to know the ups and downs of all areas of Australia nor do I want to. If I want to diversify outside of Perth then I would seek professional opinion to help me to make a good decision.

 

[starter]

Reasons some smart investors, who know how to leverage their time, have used our BA services:

1. We looked for 4 months to find a sub-division opportunity for a Dr in Singapore. Purchased for $580K a house on a large corner block. After subdivision goes thru, house on smaller block is worth $550K. Newly created block is worth $250K. Client paid me $10K so he can make $200K. Was this an good deal for him?

2. Found a block of 3 units OOT, suitable for reno & strata title. GP in the deal was $200K. Client paid me $10K so he can make $150K. Was this an good deal for him?

That's all for me for now.
Cheers. Alan

Alan, for these deals, do you give the client any assurance/guarantee that the property can be subdivided/strata titled successfully?

 

[oc1]

In relation to retainer fees that BAs charge, you said:


Sorry, but it does not work that way in RE. Many of my selling agent contacts bemoan the fact that they can sign up a vendor for the sale of a property, write an advert, put up the listing on re.com and domain, erect a For Sale sign, conduct a number of Open for Inspections - AND then have the vendor Withdraw from Sale.

In the case of me (us now - there's 4 of us) as a BA, we don't need the money. What we need is some show of committment from an intending purchaser. Anybody can sign an agreement. I like to see some 'skin in the game'.

Kudos to you! Well said.

Oscar

 

[HD_ACE]

Alan, for these deals, do you give the client any assurance/guarantee that the property can be subdivided/strata titled successfully?

always stca i would imagine.

 

[oc1]

Alan, for these deals, do you give the client any assurance/guarantee that the property can be subdivided/strata titled successfully?

There's no guarantee with subdivision. That's not the way the game works.

 

[Propertunity]

Alan, for these deals, do you give the client any assurance/guarantee that the property can be subdivided/strata titled successfully?

With any property with development potential aspects there can be no guarantees. If you ring the local council and say "can I do this or can I do that, with this property address?", you will NEVER get a straight 'yes' or 'no', at least in my experience. They will always say 'submit a DA' and you will get an answer.

All we can do as BAs is just make sure the property has a tick in every box that gives it every likelihood of getting approved.

We also engage with Private Certifiers and Town Planners to get their professional opinion - but again their can be no guarantees, they don't offer any either, as with anything in life. What's the old saying? "you pays your money and you takes your chances".

*edit* I see Oscar replied while I was typing my long story

 

[starter]

There's no guarantee with subdivision. That's not the way the game works.

Naturally, I was just curious as to what level of certainty the BA can give for a brief to find a property suitable for subdivision.

 

[sash]

Propertunity...I have met you before and if I was to select a buyers agent it would probably be you. Not because I like you ...it is just that I am prepared to pay 10k for a development site where as I would be reluctant to do this on a single residential property.

As Starter has asked...do you give some sort of surety on development sites? I am already building a couple of H&L packages in Perth where i will pull 80-100k net on these deals. They are low risk as they are costing me about $310-320 to complete (all costs including, stamps, interest, and legals) In the next few years I would like to focus on the development side. Thus the question....

Also...lets say I have a a couple of mates on very high incomes who keep nagging me to put deal together for them to participate in on. I have already done 2 and they have been successful. These were quite simple...we grouped together to buy land at attractive price and build a H&L packages. No shared loans or other complicating factors. I plan to retire over the next few years.....and plan to develop property as I am pretty good at picking up gaps in the market from a product perspective.

Alan, for these deals, do you give the client any assurance/guarantee that the property can be subdivided/strata titled successfully?

 

[starter]

With any property with development potential aspects there can be no guarantees. If you ring the local council and say "can I do this or can I do that, with this property address?", you will NEVER get a straight 'yes' or 'no', at least in my experience. They will always say 'submit a DA' and you will get an answer.

All we can do as BAs is just make sure the property has a tick in every box that gives it every likelihood of getting approved.

We also engage with Private Certifiers and Town Planners to get their professional opinion - but again their can be no guarantees, they don't offer any either, as with anything in life. What's the old saying? "you pays your money and you takes your chances".

Fair enough Alan. Good to know that you do do everything possible though.

 

[oc1]

Naturally, I was just curious as to what level of certainty the BA can give for a brief to find a property suitable for subdivision.

A good BA would engage a town planner, consultant etc for advice in relation to the subdivision and go from there.

Oscar

 

[Propertunity]

Propertunity...I have met you before and if I was to select a buyers agent it would probably be you. Not because I like you

Awww shucks! Well the feeling is mutual, I don't like you either

...it is just that I am prepared to pay 10k for a development site where as I would be reluctant to do this on a single residential property.

.....and I'm not doing anymore development deals for you especially, for a skinny $10K either!

As Starter has asked...do you give some sort of surety on development sites? I am already building a couple of H&L packages in Perth where i will pull 80-100k net on these deals. They are low risk as they are costing me about $310-320 to complete (all costs including, stamps, interest, and legals) In the next few years I would like to focus on the development side. Thus the question....

No, see previous response - no guarantees with this sort of stuff.

Also...lets say I have a a couple of mates on very high incomes

Let's get serious - you don't have any mates

OK - all the above was said (by me) in jest, because I have met sash - see me in a few years when you're ready. I might be too old and rich by then to want to help you.....especially if all this stuff I'm readin here is true - such low overheads we have and doing 2-3 deals per month and bingo! you're a rich BA who takes no responsibility - living the high life. Doh!

 

[Ideo]

Knowing the 3 unit development (don't get me started on bloody surveyors) I can state that there is a very good probability of getting council approval. It meets all the requirements for a successful approval.

But a professional can never guarantee 100% success. All they can give is a good probability of success.

You can never have a 100% certainty unless you go with complying development and follow everything to the letter.

 

[sash]

Well with the coin I am making now....I would be mad to change.

But I am sure you are are doing okay. The way I see it is that industries cannot afford to pay the 10k on single deals. I am seeing this across service industries in Australia...eventually competition sorts prices out.

I am easily making my income by simply signing a few H&L packages a year. Easiest option at the moment....but at some point...I want to start the 6-12 unit residential development. And who would have thought I would even considered that a couple of years ago.

In terms of buyers agents....there are BAs who charge substantially less and making great coin.....so not a new phenomnon. Evenually...BAs will be more regulated just like Financial Planners today...

I personally don't care whether people like me or not. In business it is not possible to be liked all the time. But judging by the PMs or personal email I am getting my posts have resonated quite well....they are still comming....obviously some people are still catching up...

Being thick skinned is great.....when I was younger I was getting visas to come to Australia when an RPG was fired into the Australian Embassy. If I survived that...then I am sure I should be okay....from anything on this site.

Awww shucks! Well the feeling is mutual, I don't like you either


.....and I'm not doing anymore development deals for you especially, for a skinny $10K either!

No, see previous response - no guarantees with this sort of stuff.

Let's get serious - you don't have any mates

OK - all the above was said (by me) in jest, because I have met sash - see me in a few years when you're ready. I might be too old and rich by then to want to help you.....especially if all this stuff I'm readin here is true - such low overheads we have and doing 2-3 deals per month and bingo! you're a rich BA who takes no responsibility - living the high life. Doh!

 

[Hoffy]

Mmmmm.

Plenty of reasons to use a BA. Plenty of reasons not to. Its a free choice - take it or leave it.

3. I've purchased property before and when I look at what I've purchased, it has not worked out to be the greatest investment.
)

So are you an investment adviser?

 

[Propertunity]

So are you an investment adviser?

No, and I never want to be.