Do I need a buyers agent?

[map]

Thanks for your helpful responses Jake, Propertunity & West57!

I certainly agree a BA could probably do a better job negotiating a sale price than me.

I particularly value their knowledge of specific streets and the attributes of specific locations within suburbs (particularly in the areas where I am looking, a block or two can make all the difference when it comes to the flight path)!

 

[Fifth]

Without reading through the thread, in answer to the thread title - no, you do not need a buyer's agent.

Few successful investors use BAs. By definition, a successful investor should be competent enough to source and negotiate their own properties.

If you lack confidence in your abilities and see a BA as being helpful or essential, view them as a set of training wheels to be used during the learning process rather than a permanent fixture of your property investment journey.

Exceptions may be interstate properties and whatnot.

 

[EstateCentral]

He originally quoted me around $900 @ $150/hr but as he didn't do as much as he thought he would, he lowered the price. He was a very honest guy. I engaged him quite late in the process so he inspected about 3 houses for me then bidded at one auction. I already had shortlisted properties from my own online research, he didn't bring any new properties to the table.

If you're not comfortable paying a %age of the purchase price (as I wasn't), ask them if they have an hourly rate or fixed fee that can be negotiated.

As stated, I'd done alot of the groundwork myself and basically just brought him in for a second opinion and to seal the deal. This is probably the same for all BAs but his fee isn't payable if you don't find a property.

Thanks for sharing. I have the same view like you as in I'm not comfortable in paying a percentage of the purchase price and would like to do all the online research myself.

I will definitely look into finding a suitable BA also just for a second opinion and help in price negotiation.

 

[Jacque]

Thanks for sharing. I have the same view like you as in I'm not comfortable in paying a percentage of the purchase price and would like to do all the online research myself.

I will definitely look into finding a suitable BA also just for a second opinion and help in price negotiation.

Don't forget that not all BAs charge a commission- in fact you will find the large majority of BAs actually charge a fixed fee. What we refer to as Option 2 services (Evaluate and Negotiate) are also certainly available for those buyers who have found a particular property they're keen on, but aren't sure on price or acquisition strategy.

Whilst we certainly offer consulting services over the phone we do not offer market opinions on price without physical inspections. We can provide the data (past sales prices, marketing histories, days on market etc) and conduct research, however nothing replaces actually viewing the property in detail in order to provide a fair opinion on price.

 

[aramz]

Are a buyers agent's fees able to be put on the cost of the home loan?

I was told they were but just wanted to confirm this

 

[PropertyInvest1]

Disclosure: I am a buyers agent and property valuer

Our company charges 1-2% depending upon the scope of the assignment. This can also be pre-negotiated at an 'agreed' set fee for those who may be worried about the commission but is based upon the aforementioned percentages and the budget proposed.

Do you need a buyers agent? We started from a property valuation background and saw people regularly invest poorly. Try telling the bank their client has paid 20% above market for an 'off the plan' apartment - not pretty.... So yes, many people benefit from buyers agents and the costs are often justified.

 

[DavidTomlins]

@aramz.

Pretty late reply aramz but yes you can definitely negotiate with your lender to include buyers agent fees in your loan. A lot of agents will have a relationship with mortgage lenders that are aware of a BAs services. Fixed fee situation obviously makes it easier.

 

[Rolf Latham]

@aramz.

Pretty late reply aramz but yes you can definitely negotiate with your lender to include buyers agent fees in your loan. A lot of agents will have a relationship with mortgage lenders that are aware of a BAs services. Fixed fee situation obviously makes it easier.

I thought I would add some clarity around this.

Of course you can add whatever you want to your housing loan that is mortgage backed, you can add stamp duty, BA fees, conveyance costs, reno costs, a new pool a new car as long as................

1. The Loan to value ratio remains within the constraints for the lender policy, the product used and the security provided.

2. The Loan needs to remain serviceable under the lenders criteria.

3. Generally, if you are using the property you are buying as security, none of the loan can be drawn until settllement.


Typically, where an investor is drawing 105 to 108 % of the purchase price to cover all costs, additional security is involed and the loan is structured so that the upfrnt fees can come out of the loan before settlement because we have additional security to hang those loans to.

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