Is $30k too much for a buyer's agent fee?
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James GG, Lil Skater and Jake Milne working together? Sounds like a formidable team to be honest.
Surely the question of the worth of their fees at the price points being discussed is totally dependent on the value added to the equation.
There are plenty of investors here who are fiercely independent and don't want to use a BA, that is totally fine.
For those that do, for any living away, or earning serious money doing something else, who just don't have time, who want a particular result and decide they will get a better result with a custom service (even charged at 30k) Then if they are sure their BA will generate more than 30K in value then its a no brainer to use one.
What if the BA finds just the right property and saves 300k in the negotiation through their skills and knowledge? Are they worth it then?
Surely the question of the worth of their fees at the price points being discussed is totally dependent on the value added to the equation.
There are plenty of investors here who are fiercely independent and don't want to use a BA, that is totally fine.
For those that do, for any living away, or earning serious money doing something else, who just don't have time, who want a particular result and decide they will get a better result with a custom service (even charged at 30k) Then if they are sure their BA will generate more than 30K in value then its a no brainer to use one.
What if the BA finds just the right property and saves 300k in the negotiation through their skills and knowledge? Are they worth it then?
I agree. If I was buying a $3m property and I could not inspect the properties myself, I would certainly want the best team that I could find to identify potential properties for me. If the BAs can negotiate a 1% discount off the property, the fee is covered right there.
As it has been pointed out if they are adding value which is a personal thing then yes.
Does it cost $100 to install a power point? No, it is a $5 plate from Bunnings and some wires and I could do it myself.
However I do not have the skill set and I wouldn't want to risk my life to save $95.
How about fine dining are the meals really worth $500 pp? In terms of cost price no, but the skill required to balance the meal perfectly and the knowledge and care that has gone into the dish makes the price $500 and it is what they value it at.
If you were really into photography you could spend $10k or more on a lens but others who weren't would say my iphone does the same thing or is just as good. The truth is the $10k lens will give you an amazing photograph (if used correctly) but to an avg joe the iphone camera is enough for what they want.
Value is something that is personal, some will value something higher than others and others will not value it.
Does it cost $100 to install a power point? No, it is a $5 plate from Bunnings and some wires and I could do it myself.
However I do not have the skill set and I wouldn't want to risk my life to save $95.
How about fine dining are the meals really worth $500 pp? In terms of cost price no, but the skill required to balance the meal perfectly and the knowledge and care that has gone into the dish makes the price $500 and it is what they value it at.
If you were really into photography you could spend $10k or more on a lens but others who weren't would say my iphone does the same thing or is just as good. The truth is the $10k lens will give you an amazing photograph (if used correctly) but to an avg joe the iphone camera is enough for what they want.
Value is something that is personal, some will value something higher than others and others will not value it.
It seems extortionate. Unless the BA is worth his salt, $30,000 is a lot of money to blow.
On ya bike then...
I'm not going to comment on Qura's fees here as obviously I cannot be objective in this situation, given my industry and lack of knowledge regarding the specific client brief in question.
I would like to point out, however, that every search for a client is decidedly different and entails variation in criteria (property type, features, degree of difficulty, budget, scope of search area, canvassing requirements etc) that ultimately determines the fee. As a general rule, most BAs tend to charge a fixed fee in a particular price bracket and this is known upfront to clients. In my experience (and I have actually changed my views on this now that I've been running my own BA business since 2005) the higher the price bracket, the fussier the clients and the more time-consuming the brief (and related parties that we deal with during the process).
Much like selling agents (whom, as a reminder, would be charging approx anywhere from $45K++ for selling a $3m property- a job that, it could be argued, often entails less work) buyers agents are acting on behalf of those who usually don't have the experience, skill, exposure or time to do the job themselves (or indeed may not want to!)
This is a service-based industry and I believe that a lot of buyers forget that, as BAs, we are not re-visiting the one property, standing at the door of that same one open home collecting names and following up for our fee- we are physically inspecting many many properties over the course of a search, enquiring and liaising with all selling agents in a search area (requiring hundreds of calls and emails) privately canvassing and finding out about all properties for sale (with some of those off-market) assessing and providing written reports on shortlisted candidates, negotiating and liaising with several parties, interviewing property managers and attending pre-settlement inspections. Negotiating is also a crucial skillset to this job and an area where many inexperienced purchasers cost themselves dearly (though you're rarely going to hear buyers admit this after a purchase, given price self-justification is practically a sport following the event
)
As Big Will has so aptly written, Value is something that is personal, some will value something higher than others and others will not value it. I don't believe criticising and naming an agency's fees on a public forum is very helpful unless you know the specifics of the brief and, even then, it's up to the individual to decide if the value is in the service being provided.
My two cents worth anyway...
I would like to point out, however, that every search for a client is decidedly different and entails variation in criteria (property type, features, degree of difficulty, budget, scope of search area, canvassing requirements etc) that ultimately determines the fee. As a general rule, most BAs tend to charge a fixed fee in a particular price bracket and this is known upfront to clients. In my experience (and I have actually changed my views on this now that I've been running my own BA business since 2005) the higher the price bracket, the fussier the clients and the more time-consuming the brief (and related parties that we deal with during the process).
Much like selling agents (whom, as a reminder, would be charging approx anywhere from $45K++ for selling a $3m property- a job that, it could be argued, often entails less work) buyers agents are acting on behalf of those who usually don't have the experience, skill, exposure or time to do the job themselves (or indeed may not want to!)
This is a service-based industry and I believe that a lot of buyers forget that, as BAs, we are not re-visiting the one property, standing at the door of that same one open home collecting names and following up for our fee- we are physically inspecting many many properties over the course of a search, enquiring and liaising with all selling agents in a search area (requiring hundreds of calls and emails) privately canvassing and finding out about all properties for sale (with some of those off-market) assessing and providing written reports on shortlisted candidates, negotiating and liaising with several parties, interviewing property managers and attending pre-settlement inspections. Negotiating is also a crucial skillset to this job and an area where many inexperienced purchasers cost themselves dearly (though you're rarely going to hear buyers admit this after a purchase, given price self-justification is practically a sport following the event
) As Big Will has so aptly written, Value is something that is personal, some will value something higher than others and others will not value it. I don't believe criticising and naming an agency's fees on a public forum is very helpful unless you know the specifics of the brief and, even then, it's up to the individual to decide if the value is in the service being provided.
My two cents worth anyway...
A lot of people seem to have missed the response some days ago from James, the buyers agent in question. Here is the relevant bit:
Why let the truth get in the way of a good thread?
I've been sitting here & watching this thread & think there are a few things that need to be clarified for those that are being judgemental. While a lot of the people on this forum have the skills and/or time to do it themselves, some don't & so a buyers agent will be used.
This is NOT a traditional IP that is being bought. You can pay $a BA $10k to Source a $300k property in Western Sydney. This is NOT a $300k property, nor, as it seems will it be an IP for long, so the buyers would most probably be extremely pedantic.
Not that it is anybodies business other than the parties involved in this, please note the following.
So, all this talk is really a complete waste of time.
This is NOT a traditional IP that is being bought. You can pay $a BA $10k to Source a $300k property in Western Sydney. This is NOT a $300k property, nor, as it seems will it be an IP for long, so the buyers would most probably be extremely pedantic.
This is exactly what I would perceive to be the case.
Again this matches exactly my perception of the job, and the costs involved.
Yes, it is only the client who can really say what the value is to them.
Not that it is anybodies business other than the parties involved in this, please note the following.
So, all this talk is really a complete waste of time.
It is a moot point seeing as the fee for service was not correct however I just wanted to say that I don't think $30k is unreasonable for that price bracket. The amount of work that goes into finding the right high end established property is huge and if you find the right professional their skills and negotiation powers will pay for themselves.
I have a $32k interior design bill at the moment that will be largely offset by my designers wholesale 30% saving on tiles.
I have a $32k interior design bill at the moment that will be largely offset by my designers wholesale 30% saving on tiles.
