Do I need a buyers agent?
- Thread starter JDP111
- Start date
As Rolf alluded to, a BA Agreement covers sourcing and negotiating purchases.
However, BAs also get asked for recommendations for all sorts of 3rd party providers like: solicitors, painters, Property Managers, granny flat designers & builders etc. - so many can help out in this regard too.
If they can & do (as we do), then we must by legislation fill out a disclosure document outlining fees received by the BA (if any) - so the process is open and transparent.
Hi Raj
Our own Alan Fox (Propertunity) covers the Inner West but, if he is too busy or can't do it in your timeframe
check out other REBAA BAs who cover this area. There's quite a few to choose from....off the top of my head: Good Deeds, Home Search Solutions, Property Buyer, Amanda Segers.... just to name a fewhttp://rebaa.com.au/members/
you guys must get paid a mint?
say 10k a sale..40 hours a week (lets say 6 days at 6.5 hours or so each), say it takes 2 weeks work (worth of hours) all up for a single sale)...thats 125 an hour ..
admittedly I have no idea how long you would really spend, and im sure it varies a lot.. but not supplying any physical product (ie low costs). and once you are that familiar with an area/street etc would be saving a lot of time
wouldn't need many sales to earn the average income? i await to stand corrected
do less demanding / easier criteria clients get discounts?
say 10k a sale..40 hours a week (lets say 6 days at 6.5 hours or so each), say it takes 2 weeks work (worth of hours) all up for a single sale)...thats 125 an hour ..
admittedly I have no idea how long you would really spend, and im sure it varies a lot.. but not supplying any physical product (ie low costs). and once you are that familiar with an area/street etc would be saving a lot of time
wouldn't need many sales to earn the average income? i await to stand corrected
do less demanding / easier criteria clients get discounts?
Id expect a good BA makes a LOT more than that, would one prefer to pay someone that doesnt have the capacity to make $ on the open market ? no, we want the best people for the task that produce way above average result.
Let me ask you, when you last had a plumber out to your place to change a 20 c tap washer what was the bill, and how long did the actual job take ? In reality that 20 c job soaked up a $ 60 ++ in reources, and they billed you 85 to 120 bucks.
We get this regularly, folks look at the brokers comms disclosure statement and put 2 and 2 together and get 3.5.
ta
rolf
This reminds me of the guy who went to the dentist for a filling and was presented with a bill for $160. The patient was very vocal in raising his outrage at having to pay such a price for a 15 minute procedure. He demanded an itemised account.
The dentist complied and presented a bill which stated:
Labour and materials to fix tooth: $40
Knowing how: $120
Cheers. Alan
At the risk of repeating something that has already been asked/answered, I'll set out my situation and query whether a BA is worthwhile.
I've used BA's twice before (both IPs) - same agency, great result first time and "ok" result second time.
Now looking for a PPOR (inner west Sydney) up to about $700K (house/terrace etc).
Given my partner and I have a reasonable amount of time on our hands (both work full-time but can do 4-6 inspections a weekend) and have narrowed our search to approx 3 suburbs, is a BA really going to be worth ~$20k in my circumstances?
I understand there can be silent sales and other rapport with vendor agents that I don't have, but I intend to get a building inspection and independent valuation when the 'right' property comes up to reduce the risk of over-paying.
Would love to hear pros/cons from BA's and others in my situation (who didn't buy out of area and had time to attend inspections etc but chose to use a BA for PPOR).
Many thanks in advance!
I've used BA's twice before (both IPs) - same agency, great result first time and "ok" result second time.
Now looking for a PPOR (inner west Sydney) up to about $700K (house/terrace etc).
Given my partner and I have a reasonable amount of time on our hands (both work full-time but can do 4-6 inspections a weekend) and have narrowed our search to approx 3 suburbs, is a BA really going to be worth ~$20k in my circumstances?
I understand there can be silent sales and other rapport with vendor agents that I don't have, but I intend to get a building inspection and independent valuation when the 'right' property comes up to reduce the risk of over-paying.
Would love to hear pros/cons from BA's and others in my situation (who didn't buy out of area and had time to attend inspections etc but chose to use a BA for PPOR).
Many thanks in advance!
is 700 k on the money for what you are looking to buy ?
My most recent experiences are that you will be chasing for a long while.
I Feel you have answered your own question in the realms of what you believe a BA does, AND obviously this is qualified by experience, unlike some that poo poo or "pedestal" BAs without real personal or specific experience.
I pose some questions which may help you sway either way.
1. What is your hourly rate for the work you do ( both of you)
2. Do you enjoy the chase?
3. Do you think you are learning something from the chase
4. are you sure your budget is realistic for the stock you are looking for, OR will you spend the next 4 mths chasing "pixie dust"
Most of my clients thats use BAs do so because they cant be bothered to do the work themselves and they feel the fee will work out "revenue neutral."
ta
rolf
My most recent experiences are that you will be chasing for a long while.
I Feel you have answered your own question in the realms of what you believe a BA does, AND obviously this is qualified by experience, unlike some that poo poo or "pedestal" BAs without real personal or specific experience.
I pose some questions which may help you sway either way.
1. What is your hourly rate for the work you do ( both of you)
2. Do you enjoy the chase?
3. Do you think you are learning something from the chase
4. are you sure your budget is realistic for the stock you are looking for, OR will you spend the next 4 mths chasing "pixie dust"
Most of my clients thats use BAs do so because they cant be bothered to do the work themselves and they feel the fee will work out "revenue neutral."
ta
rolf
Thanks for your response Rolf!
As to budget, we've come across a few places in the mid-high $600s (2 bed, no parking) in the target suburbs (St Peters, Sydenham & Tempe). They are few & far between though!
We can be bothered to do the work and we are learning something, so I guess we aren't in the same situation as many BA users.
I don't know if a BA is worth $20K to find a $700K property - sounds a bit high to me, but they maybe? Fee structures aside, you may like to consider using a BA's "option 2" service. Most BAs offer this where you find the property/s and they do the evaluations & negotiations for around 1/2 the full fee. Just a thought.
I used a BA and negotiated an hourly rate rather than fixed fee or %age of purchase price. I did most of the online searching and got him to evaluate the properties I had shortlisted and advise if there were any suitable ones that I'd missed. He also provided some valuable local advice (as I wasn't local to the area where I was buying). He then bidded for me at auction where he did a fantastic job to secure the property. His fee in the end was $450 - well worth it from my point of view.
Only $450 for the whole process? That was very cheap. Would you mind sharing how much per hour did he charge you? And how many house inspections did he do for you in total?
I would employ a BA if I can find one similar.
Thanks
I would employ a BA if I can find one similar.
Thanks
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.
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.
If you've got the time to find a home yourself I'd suggest hiring a BA to negotiate for you instead of the full package.
Regardless of how good a BA is I'd virtually guarantee they could out negotiate almost every home buyer or investor purely because it's their life.
As a BA myself I usually find that I add the most value to home buyers who are: inexperienced purchasers &/or time poor &/or looking to buy in a new area.
There are other benefits of having a BA like off market property, but if you've already got your suburbs selected and ideal streets pin-pointed there's nothing stopping you asking local agents for off-market property too.
