What can a buyers advocate do that I can't....

[edge10]

Am trying to work out whether I should be hiring the services of a buyers agent...been trying to find a house for 6 months now...have put in offers on 3 properties (one a private sale and the other 2 were auctions) and have not managed to secure the deal.....im confident with bidding at auctions...we look on the net for properties and have no probs attenting opens, so im not sure whether it is worth me investing 2% into this service when most of those things im happy to do myself. The one thing i would find helpful is using a BA to push for an offer before auction...lots of auctions ive been to the agents have expressed the vendors are not wanting offers before and then it goes to auction and the reserve is well within my limit but im just knocked over by higher bidders...so I feel if im to stand a chance in the areas im looking in I need to be able to push for an offer before auction...can anyone out there tell me their thoughts (positive or negative) on their experience in hiring a BA. This is for a PPOR...

Thanks,
Edge10

 

[Rolf Latham]

Am trying to work out whether I should be hiring the services of a buyers agent...been trying to find a house for 6 months now...have put in offers on 3 properties (one a private sale and the other 2 were auctions) and have not managed to secure the deal.....im confident with bidding at auctions...we look on the net for properties and have no probs attenting opens, so im not sure whether it is worth me investing 2% into this service when most of those things im happy to do myself. The one thing i would find helpful is using a BA to push for an offer before auction...lots of auctions ive been to the agents have expressed the vendors are not wanting offers before and then it goes to auction and the reserve is well within my limit but im just knocked over by higher bidders...so I feel if im to stand a chance in the areas im looking in I need to be able to push for an offer before auction...can anyone out there tell me their thoughts (positive or negative) on their experience in hiring a BA. This is for a PPOR...

Thanks,
Edge10

HI Edge

Interesting fun : (

are u saying you are getting to auction and freezing to complete?

or

getting to auction and the price being paid is beyond your perception of "market" ?

ta
rolf

 

[Dave_R]

I'm certain some of the BA's on here will respond in due course, but I do think there are a number of past threads touching on the subject.

I can empathise with your situation. A colleague of mine is in the very same situation trying to buy a PPOR in Melbourne too - he is of the opinion that the ones he looks at have been selling over market value. Seems that there are a number of people in Melbourne with more money than sense these days

From my recent experience using a BA (albeit to buy an IP in NSW), if you can find a good one, they can be worth their weight in gold. I'm very happy with my experience (despite the selling agency making a dog's breakfast of the sale... another story). The advantage with BA's is that most of the good ones are likely to be former estate agents and can utilise their knowledge of the ins and outs of the purchasing process.

In your situation, I think a BA may be able to help you in a limited role. You seem to have a good idea what you're after, you just need some help to get over the line.
Continuing on what I said earlier, have a search around the forums for some information on others' experiences. This recent thread may be useful too if you're after recommendations locally.

 

[Jtkumnick]

Im sure your inbox will be flooded shortly. Its a BA party on here......

 

[edge10]

Hi Rolf,

Not freezing, just reaching my limit at auctions and in some cases (like recently), the property was listed at 570+ (i hit my limit 660) and it sold for 702 Reserve for this property was 615 ..so I am left wondering, if i had hired a BA, could they have pushed to secure the deal before auction (even tho the agent was saying the vendor was not taking offers prior)...

 

[Rolf Latham]

Hi Rolf,

Not freezing, just reaching my limit at auctions and in some cases (like recently), the property was listed at 570+ (i hit my limit 660) and it sold for 702 Reserve for this property was 615 ..so I am left wondering, if i had hired a BA, could they have pushed to secure the deal before auction (even tho the agent was saying the vendor was not taking offers prior)...

pay the commitment fee and find out : )

its not a lot in relation to the dollars you are talking about here

I reckon the selling agents you have been dealing with are a bunch of "lying " underquoting so and so's and its quite poss u werent in the market to begin with, being mindful the Melb market is supposed to be flat and slow

ta
rolf

 

[edge10]

Im sure your inbox will be flooded shortly. Its a BA party on here......

Bring it on...

 

[edge10]

Yep...and that is exactly what has brought me to this point...just getting frustrated with the whole process!!

 

[Peter_Tersteeg]

I reckon the selling agents you have been dealing with are a bunch of "lying " underquoting so and so's and its quite poss u werent in the market to begin with, being mindful the Melb market is supposed to be flat and slow

If you go to enough auctions in Melbourne, you'll realise that it's simply standard proceedure to under quote. If you add about 10% (perhaps 20% in a good market) to the quoted price, you'll start to get close to what the vendor may accept.

That doesn't mean that this is what the property is worth, that's another thing althogether. In a slow market it's quite possible to simply wait out the vendor and the price will come down - unless somebody else decides to buy. Right now I'm not sure if it's still a slow market or not. By Christmas, hindsight will be wonderful.

I know a very good BA in Melbourne who also occassionally posts here - Lisa Parker 0413 427 075. It would be well worth your while to sit down with her to see if she can help.

 

[Aaron_C]

Underquoting...that's the State sport behind AFL here.

Don't let it bother you - it is just to draw a crowd in. I have been to many auctions where I thought the agent was just underquoting but I managed to get it for that price anyway...so who knows.

 

[j_p]

Hi edge,

BA's can offer a range of services, from locating, negotiating etc etc.

If you find the property that you're interested in you can pay a (reduced) fee for negotiating the sale (price, terms etc)

I've used a BA and they probably saved me a similar $ amount to the fee in the negotiations, plus I didn't have to do anything and I learnt a lot.

At the very least they will let you know if you have realistic expectations.

All this is assuming they are a quality BA

Good Luck!

 

[sh710]

From my recent experience using a BA (albeit to buy an IP in NSW), if you can find a good one, they can be worth their weight in gold. I'm very happy with my experience (despite the selling agency making a dog's breakfast of the sale... another story). The advantage with BA's is that most of the good ones are likely to be former estate agents and can utilise their knowledge of the ins and outs of the purchasing process.

Dave, would you letting us know which BA you used Feel free to PM me if wish

 

[Ausprop]

it's another layer of cost. like everything tho, if your time is used better elsewhere or you don't have the skills then emply someone, otherwise DIY. if you take a $500k property and squeeze in the REAs fees and the Buyer's fees there's a lot of lost wealth there between the vendor and buyer.

 

[edge10]

Thanks all for yr replies....think at this point I have nothing to lose (well besides $) so I might take the plunge and meet with some advocates and see what we think...for those that have used BA...can you start me off with some recommendations? Feel free to PM me if you like....

 

[Peter_Tersteeg]

Thanks all for yr replies....think at this point I have nothing to lose (well besides $) so I might take the plunge and meet with some advocates and see what we think...for those that have used BA...can you start me off with some recommendations? Feel free to PM me if you like....

Lisa Parker 0413 427 075

 

[starter]

Hi Rolf,

Not freezing, just reaching my limit at auctions and in some cases (like recently), the property was listed at 570+ (i hit my limit 660) and it sold for 702 Reserve for this property was 615 ..so I am left wondering, if i had hired a BA, could they have pushed to secure the deal before auction (even tho the agent was saying the vendor was not taking offers prior)...

To be honest edge, I don't think a BA would have been helpful in this situation. It seems like this particular seller really did want to go to auction. You find that this is the case in some situation, espcially if they know that there is a fair bit of interest there or if they simply want to go with the market.

Also money talks, I'm sure if your offer was decent enough they'll definitely provide it to the seller, whether your an individual or a buyer agent.

A tactic that I did use to do was to tell them that I'm interested in the property but have another place that I was also keen on which was going to auction before this property. Therfore, would they be interested in the offer as otherwise I would be bidding at the other auction instead.

 

[Logica]

Am trying to work out whether I should be hiring the services of a buyers agent...been trying to find a house for 6 months now...have put in offers on 3 properties (one a private sale and the other 2 were auctions) and have not managed to secure the deal.....

"What can a buyers advocate do that I can't..."

I think the best way to answer this question would be to sit down with one (or two) and let them explain! The first meeting is free and you'd be able to get a lot of issues cleared. I'm not in MEL but there are many excellent professionals there.

NB: 3 offers in 6 months.... hmmm.... I think a BA would have been much more efficient.

Good luck.

 

[Jacque]

Am trying to work out whether I should be hiring the services of a buyers agent...been trying to find a house for 6 months now...have put in offers on 3 properties (one a private sale and the other 2 were auctions) and have not managed to secure the deal.....im confident with bidding at auctions...we look on the net for properties and have no probs attenting opens, so im not sure whether it is worth me investing 2% into this service when most of those things im happy to do myself. The one thing i would find helpful is using a BA to push for an offer before auction...lots of auctions ive been to the agents have expressed the vendors are not wanting offers before and then it goes to auction and the reserve is well within my limit but im just knocked over by higher bidders...so I feel if im to stand a chance in the areas im looking in I need to be able to push for an offer before auction...can anyone out there tell me their thoughts (positive or negative) on their experience in hiring a BA. This is for a PPOR...

Thanks,
Edge10

Hi Edge

If you're serious I'd start by checking out the right BA for you and your particular area- the REBAA site is a good start http://www.rebaa.com.au/
Most BA's offer a retainer payment upfront so if you hire them and still don't find anything, it's a small price to pay for time spent. Also check out the testimonials on individual sites and ask for phone references from recent clients.

Every property (and vendor) is individual, so it's impossible to say whether or not a pre-offer could have been accepted in your situation. If it does arise again, however, consider making your walk away price early in the campaign rather than later. This way the vendor has to weigh up the risks of taking something good earlier on... bird in the hand, so to speak. Also be sure your offer has an expiry date and you are in the position to be able to buy under auction conditions.

You will learn much from a seasoned BA- many of our clients attest to being well-educated along the journey, with some expressing disappointment when it's actually all over! Best of luck with your impending purchase.

 

[Logica]

Buyers Agent Guide

The Buyers Agent Guide is a good source of information about BAs and how they can assist buyers.

Visit: http://buyersagentguide.com.au/

There are 30 BAs from Melbourne featured in the guide for example.

Hope this can assist.

 

[DavidTomlins]

Thanks Logica.

A bit late to this thread, but I have just revamped the site and am actively looking for case studies and reviews of Buyer Agent experiences in order to give the market more information on the quality of agents out there.

Cheers

David.