Do I need a buyers agent?
- Thread starter JDP111
- Start date
People will often employ a BA when they don't feel they've got the time to do it themselves. In a lot of situations they may not have the experience or confidence to purchase in a particular market (I see a number of people from overseas or interstate using BAs all the time).
In some cases a BA can simply do a better job than an individual when it comes to property purchase. Kind of the same way I know that I'd be a lousy property manager, therefore I pay someone else to do it for me.
Believe it or not, most of us aren't better negotiators than the real estate agent we're purchasing off. We do it only periodically, but they do it every day. So does a buyers agent.
In many cases a buyers agent may be made aware of a property coming onto the market before its advertised to the general public. Since they're in the market constantly, they often develop better relationships with sales agents and may be privvy to extra information. I've witnessed agents telling the BAs things they wouldn't say to a private purchaser.
In some cases a BA can simply do a better job than an individual when it comes to property purchase. Kind of the same way I know that I'd be a lousy property manager, therefore I pay someone else to do it for me.
Believe it or not, most of us aren't better negotiators than the real estate agent we're purchasing off. We do it only periodically, but they do it every day. So does a buyers agent.
In many cases a buyers agent may be made aware of a property coming onto the market before its advertised to the general public. Since they're in the market constantly, they often develop better relationships with sales agents and may be privvy to extra information. I've witnessed agents telling the BAs things they wouldn't say to a private purchaser.
PT summed it all up.
Most definitely JD, but for the purposes of total transparency, I am a BA so I will be biased. We generally find property faster and more efficiently, as it's our fulltime job compared to most buyers who only search on weekends (often rushing from open to open). Important to remember that over 50% of properties in most areas are advertised as by appointment only, so it takes time to search, pinpoint, research, collate and organise to inspect everything that's on the market in a shorter period of time.
4 weeks is sufficient time if you aren't working and have the necessary time to dedicate on a daily basis. It does depend, naturally, on the amount of listings in your likely budget and criteria.
Jacque's and my fees start around the same - just under $10K, but this will depend on a few factors - such as size of the seach area, requirements, time frame etc.
BA fees are not immediately tax deductible, no. (and only then if you are buying an IP not a PPOR). The fees get added to the cost base (like solicitor's fees) and come off the CGT calculations when you eventually sell.
Comments made for this month's YIP about buyer's agents: (PS - Congrats Nathan!)
We are currently using a BA to search for our property. They have been good without being great - maybe our expectations were high.
Anyway, we short listed three & would have gone with Infolio if not for the upfront fee that we felt uncomfortable with.
If you are time poor or doing it for the first time or not familiar with the area then i would highly recommend using a BA.
Anyway, we short listed three & would have gone with Infolio if not for the upfront fee that we felt uncomfortable with.
If you are time poor or doing it for the first time or not familiar with the area then i would highly recommend using a BA.
congrats jake - in btw how old are you? coz that pic looks pretty young.
Jake is 54, but he has an amazing surgeon and great genes.
As we all know, Nathan is 8 and came out of the womb asking for a sales contract to sign.
Or have I confused the two???
Haha sorry, I know it's a bit cheeky but just couldn't resist thanks guys.
You wouldn't believe it but I'm older than Nathan, with his manly charm... My 30th is months away!
PT it's all about the genes mate.
Simtr that made me laugh.
Dubsey, good luck with finding your property, sorry we couldn't help
thanks guys.You wouldn't believe it but I'm older than Nathan, with his manly charm... My 30th is months away!
PT it's all about the genes mate.
Simtr that made me laugh.
Dubsey, good luck with finding your property, sorry we couldn't help
Last edited:
Now, you buyers agents (BA) are going to hate me for this, but I will share my few experiences.
It’s very rare I deal with buyers agents, it appears that in my area (Hawkesbury) they are not common. I have only ever dealt with a small hand full, all of which eventuated to nothing.
Firstly, the BA seemed very over protective. Similar to a know-it-all parent looking with their son or daughter. In theory this seems great, in reality it usually means missing out on properties.
Secondly, the BA has asked unreasonable demands of my vendors. For example, wanting a contract clause giving the buyer a refund of the 0.25% deposit if their finance falls through or if they are not happy with the pest & building reports. Or asking other unreasonable requests which favour the buyer 100%.
Other issues of the top of my head…Low balling vendors with offers. Going behind the agents back and speaking directly with the vendor, which just makes things worse. Some BA I have dealt with have an ego, which gets in the way of a fair negotiation. Also, some agents I speak to don’t like dealing with them. As for me, I would deal with Bin Laden if it meant a potential sale.
I see this struggle: a buyer who wants to buy a property vs someone who wants to get them an unrealistic deal.
I will say this, if I were to make a “con” list of real estate agents, it would be far longer then that of a BA. And I do believe I got caught with some bad apples which are in every industry (especially on my side of the fence). I know there are lots of professional and good BA out there who can do a great service for their clients.
I think a BA would be especially useful for finding specialized properties. I would think a good BA is able to source properties without the agent and approach some owners face to face. They can defiantly be a successful exercise when it comes to real estate transactions.
It’s very rare I deal with buyers agents, it appears that in my area (Hawkesbury) they are not common. I have only ever dealt with a small hand full, all of which eventuated to nothing.
Firstly, the BA seemed very over protective. Similar to a know-it-all parent looking with their son or daughter. In theory this seems great, in reality it usually means missing out on properties.
Secondly, the BA has asked unreasonable demands of my vendors. For example, wanting a contract clause giving the buyer a refund of the 0.25% deposit if their finance falls through or if they are not happy with the pest & building reports. Or asking other unreasonable requests which favour the buyer 100%.
Other issues of the top of my head…Low balling vendors with offers. Going behind the agents back and speaking directly with the vendor, which just makes things worse. Some BA I have dealt with have an ego, which gets in the way of a fair negotiation. Also, some agents I speak to don’t like dealing with them. As for me, I would deal with Bin Laden if it meant a potential sale.
I see this struggle: a buyer who wants to buy a property vs someone who wants to get them an unrealistic deal.
I will say this, if I were to make a “con” list of real estate agents, it would be far longer then that of a BA. And I do believe I got caught with some bad apples which are in every industry (especially on my side of the fence). I know there are lots of professional and good BA out there who can do a great service for their clients.
I think a BA would be especially useful for finding specialized properties. I would think a good BA is able to source properties without the agent and approach some owners face to face. They can defiantly be a successful exercise when it comes to real estate transactions.
i would think a buyers agent would be very useful for overseas buyers especially those who don't have the time to fly in to buy something
i see many of those mandarin speaking BAs or selling agents as well doing deals all the time. it's an advantage in terms of the language difficulties posed by these buyers and the the way they operate in terms of the "guanxi" factor as well if anybody knows what it is in doing business in the chinese world.
i see many of those mandarin speaking BAs or selling agents as well doing deals all the time. it's an advantage in terms of the language difficulties posed by these buyers and the the way they operate in terms of the "guanxi" factor as well if anybody knows what it is in doing business in the chinese world.
1. Does a buyers agent do all the legal stuff as well? Or do I still need to hire a solicitor/conveyancer?
2. Can a buyers agent give financial advice? For example, what the best type of finance would be, what the best investment strategy would be, etc?
3. How would I find a buyers agent that will act in my best interests, not his best interests?
2. Can a buyers agent give financial advice? For example, what the best type of finance would be, what the best investment strategy would be, etc?
3. How would I find a buyers agent that will act in my best interests, not his best interests?
Some Bas do some of this stuff in house, or have some good connections that can do the same
Many BA's though wont touch finance, investments or legal advice, since their core niche is sourcing property, and they dont want to be distracted from that
ta
rolf
You still need a conveyancer or solicitor to handle the conveyance, unless the BA I licensed to do so. Most would not be or would refer you on to someone they'd recommend as Rolf said.
BAs cannot give financial advice unless they are licensed to do so - and even then they would not be doing so in their capacity yas a BA.
Many BAs though are investors themselves and can offer some guidance in an unofficial capacity.
I would have thought that a good BA would see no difference in the two.
I suppose the best way, as with most things, is a personal referral from someone you trust.
Are there any threads outlining good BA's? Apart from Jake's plug above, I cannot find any genuine recommendations.
