Paid too much: due to Buyers Agent

[devank]

The vast majority of our clients use a BA because they value THEIR time at higher than what the BA's fee VALUE is to the user of the service.

ta
rolf

I thought the vast majority use because BAs can do better job. At least that is what most BAs are saying on their web sites.

 

[Propertunity]

I thought the vast majority use because BAs can do better job. At least that is what most BAs are saying on their web sites.

There is never just one reason people use a BA. In our case many of our clients are interstate or overseas.

By the time they research the market, go to the airport, hop on a plane, hire a car, pay for a motel, pay for a few meals out, go to some Opens, get the REA run-around, return home and do it all again the next week-end, you don't have to do that many times before you've spent all your BA money.......and you still won't get to the Wednesday night special viewing.

 

[Propertunity]

My reason is that normally (unless times have changed) is that the BA works off a % of what your house is bought for.
So what incentive is there for him to get you the lowest price? As he is just hurting his own commission (I understand lack of refereals).

A good reason to use a BA who charges a flat fee.

I still cannot think of a system that would be effective where BA can get paid more the more he saves you, the only thing I have gotten close to would be to use an independant valuation of the property and commission him from that. E.g. 3% for savings of 30k or more under bank value sliding down to 2% for 0-10k under value and 1% for anything over valuation...Do not know if that would fly.

That won't work. Bank vals always come in at purchase price or valuer's figure, whichever is the lower.

 

[Rolf Latham]

By the time they research the market, go to the airport, hop on a plane, hire a car, pay for a motel, pay for a few meals out, go to some Opens, get the REA run-around, return home and do it all again the next week-end, you don't have to do that many times before you've spent all your BA money.......and you still won't get to the Wednesday night special viewing.

I think I just said that in a less logical way

ta
rolf

 

[Jacque]

thanks jacque - i had my tla's (two letter acronyms) mixed up
out of curiosity do most have both PI and PL?

Of course.

 

[Melbournian]

BAs are mainly there to assist buyers find properties that suit their needs and lifestyles. Some may prefer high end while other low end properties for investment purposes.

In the US- everybody seems to use a BA. and they negotiate the best price for their buyer but if you watch some of their shows (million dollar listing new york) occassionally they try to get the max bid from the other selling agent and try to meet in the middle just to get the sale through.

I think that is what i would use a BA for - to find properties that i myself do not know much about in a specific area where they have networks. i know a few suburbs well in which i would never use the BA as i have been to that many auctions and inspections over the years it would be impossible for the BA to match - but for suburbs i do not - i admit that would where the BA would come in handy.

recently, there was a rookie poster here pushing his principles as a BA on what properties he would buy based on his investor needs assumingly that everyone would follow his principles. Well - i think it's probably wrong for the rook to assume that as different ppl have different needs, objectives and timeframes to what they hope to achieve and there is no X definite way to do it.

i feel the role of the BA is to find the property that is right for the respective individual whether it means - they paid overpaid a bit more than what the mkt was or whether it was in a less desirable area for investment needs as everyone is different.