Why do some people have success with BA's whilst others don't?

[Achimy]

How do some people manage to get the most out of a Buyer's Agent and use them successfully, whilst others say "oh no I didn't like it, I regret it...I could've done it myself".

Are the unsuccessful people who have no clue, go to a BA and seek to utilise their services?
For e.g. a lot of testimonials vs people saying they didn't offer anything I couldn't buy?

I need to buy my first property, and obviously I want to buy it yesterday (before people make the assumption I know nothing, I've done and am still doing my study, and it's more than enough to know how to invest in property, although, it's the negotiation and dealing with humans - i.e. beyond just the facts and figures, which is tough for me).

 

[D.T.]

Depends on whether the BA is any good or not. Same as any profession, some are good and some are not.

Also depends on the persons expectations. Whether they got what was promised or not depends on what they were expecting.

Realistically, they're not needed at all. All of us are able to find a property and legally transact on it. But some either dont have time, dont have interest, dont have knowledge etc, and theres a paid service to cater for that. Just like theres a paid service to cater for solutions to almost any other problem in the world.

IMO, you're much better off learning first. Property isn't going to go anywhere. Deal of a lifetime comes around every week. Even if you do end up using a BA, its worth knowing whether they're getting you something suitable.

 

[Achimy]

Okay, great, so then is the next step to research into the buyer's agency? For example I hear mixed opinions about right property group and Binvested, and not sure who to lean towards. Some people haven't got the outcome they wanted, whilst others have, I don't want to take a 10k chance and then be delayed by a year from moving on..

I guess if the numbers work, it should be fine ... i think

 

[Jamie M]

Depends on whether the BA is any good or not. Same as any profession, some are good and some are not.

Spot on.

The experience is dependent on the people providing it.

Cheers

Jamie

 

[Peter_Tersteeg]

It's not necessarily a question of researching a BA. I can tell you right now the sort of properties that BInvested will find for you. BInvested have a single strategy which they've employed successfully and that's all they do, I've never heard of them deviating from this regardless of the circumstances of the client.

It's really a question of you understanding what sort of property you're looking for and how it fits to a strategy suitable to you. It's insuring that when the BA recommends a particular property, it has to meet those parameters and you need to be able to recognise that it does. Just because a BA recommends a property doesn't mean you can blindly let them do all the due diligence for you.

If the numbers work you will be fine, but do you know what the numbers should be?

 

[SK Investments]

How do some people manage to get the most out of a Buyer's Agent and use them successfully, whilst others say "oh no I didn't like it, I regret it...I could've done it myself".

Are the unsuccessful people who have no clue, go to a BA and seek to utilise their services?
For e.g. a lot of testimonials vs people saying they didn't offer anything I couldn't buy?

I need to buy my first property, and obviously I want to buy it yesterday (before people make the assumption I know nothing, I've done and am still doing my study, and it's more than enough to know how to invest in property, although, it's the negotiation and dealing with humans - i.e. beyond just the facts and figures, which is tough for me).

Hi Achimy,

I agree with what D.T has said.

I used a BA 12 months back and can recommend him, he is a regular contributor here on SS, has a very reasonable fee structure (no full payments up front) and is very easy to deal with.

Check out www.precium.com.au his name is Matt Knight, tell him Keith sent you.

My decision to use a BA and work with Matt was not because I couldn't find a place myself, but more to help me grow, develop and refine my own skills. I did a lot of the work myself because I like to, but using a BA as an all inclusive service can be beneficial.

It's not just about them sending you the link to a property that you could have found yourself, It's the research into why that property in that area is good for you, they can then negotiate with agents, some of which they may already have a good rapport with, to get the best deal they can.
Some services also include helping to find a good property manager in that area, and even helping with trades and renovations.

I have been following some of the places Matt was researching last year with great interest, we had a good chat about how these places are taking off just yesterday, and he has been getting some good deals for his clients.

If you're wanting to act quickly, but aren't sure about whether or not you're finding the right properties yourself then a BA is certainly a good thing to consider

 

[Achimy]

If the numbers work you will be fine, but do you know what the numbers should be?

By numbers, do you simply means the holding costs (vs rent) as well as the comparable sales (assuming it's the stock standard buy below market value, recycle equity--> move forward, whilst neutralising holding costs - or positive cash flow.)

Or do you mean forecasting growth rate out etc. or something I'm missing

 

[Lord Shanghai]

The truest test is to ask: "if i am unhappy with the property in 10 years time, will you take it off my hands at no loss to me?" Most will refuse. That should tell you something.

 

[Rolf Latham]

The truest test is to ask: "if i am unhappy with the property in 10 years time, will you take it off my hands at no loss to me?" Most will refuse. That should tell you something.

Truest test ?

It would tell a buyer the same as a 10 yr rental guarantee will. Run ...... Fast

Anyone offering such an unmeasurable guarantee needs to be avoided rather than sought. Counterintuitive I know.

Ta

Rolf

 

[sanj]

The truest test is to ask: "if i am unhappy with the property in 10 years time, will you take it off my hands at no loss to me?" Most will refuse. That should tell you something.

All that tells me is that the person asking that question needs his/her head read

 

[Peter_Tersteeg]

By numbers, do you simply means the holding costs (vs rent) as well as the comparable sales (assuming it's the stock standard buy below market value, recycle equity--> move forward, whilst neutralising holding costs - or positive cash flow.)

Or do you mean forecasting growth rate out etc. or something I'm missing

I mean that you understand what your goals and strategies, where this property sits within that framework and that you've got the ability to determine if the property is suitable to those goals and strategies.

That could mean cash flow, it might mean growth, it could mean almost anything. That's for you to determine.

 

[Peter_Tersteeg]

The truest test is to ask: "if i am unhappy with the property in 10 years time, will you take it off my hands at no loss to me?" Most will refuse. That should tell you something.

This just tells a buyers agent that you're going to be a pain in the neck and they'd be better off not working with you. Right now most BAs I know are so busy they don't have time for this kind of rubbish.

 

[Michael_X]

Good question Achimy.

To help you answer this, you should determine what's more important to you.

1. Securing a deal?
or
2. Learning about the process and negotiating skills on making a deal work?

I went to the Robert Kiyosaki presentation on Monday and he talked about the 'Cone of Learning' by Edgar Dale. Essentially it shows people learn the most by Doing the real thing, Stimulating the Real Experience, etc. He also said don't be afraid to make mistakes, no one is perfect when they start but over time you will hone your skills. So if this is what you are after then nothing beats going out there and trying it for yourself. It will be nerve wracking and difficult but that's when you grow and learn.

In saying that if you don't have any interest in this area and just want to secure a deal then sure use a BA or perhaps use one for your first purchase, learn the ropes and go from there.

 

[Sim]

Okay, great, so then is the next step to research into the buyer's agency? For example I hear mixed opinions about right property group and Binvested, and not sure who to lean towards. Some people haven't got the outcome they wanted, whilst others have, I don't want to take a 10k chance and then be delayed by a year from moving on..

I guess if the numbers work, it should be fine ... i think

You need to fully understand what a buyers agent is and what they do first - because Binvested are NOT what I call "traditional" buyers agents.

Have a look at the buyers agents listed on the REBAA website - these are "traditional" buyers agents who operate on a fee-for-service arrangement and work solely for the purchaser based on their brief and requirements.

My understanding of Binvested is that they work differently in that they have a "catalogue" of property deals they've pre-selected as fitting their criteria (theirs NOT yours!!).

I'm not saying Binvested is necessarily offering bad deals - just that they work differently and you should understand those differences before making a decision about who you engage.

If your requirements happen to match with what Binvested offer - then that might be appropriate. Otherwise, you might be better off looking for a more traditional BA offering elsewhere.

 

[Achimy]

In saying that if you don't have any interest in this area and just want to secure a deal then sure use a BA or perhaps use one for your first purchase, learn the ropes and go from there.

I think I should set myself a deadline to achieve something, and if I procrastinate and don't do anything, BA is my best route to get rid of my fear.
Cheers for the perspective. I think it's clear what I need to do, and to really challenge myself before taking the plunge. I've got time on my side, which helps a bit

 

[Michael_X]

I was in a similar position, and used a BA for my first purchase.

In the mean time, continue to reach out to others on the forum - there is so much great information here

Good luck!

 

[cu@thetop]

I think I should set myself a deadline to achieve something, and if I procrastinate and don't do anything, BA is my best route to get rid of my fear.
Cheers for the perspective. I think it's clear what I need to do, and to really challenge myself before taking the plunge. I've got time on my side, which helps a bit

Can I say that from a price point of view if you did not buy in Brisbane in the last 5 years that for many suburbs your sins have been forgiven IMHO. My house in Graceville has stagnated since 2008 I reckon. Don't be in a hurry as you are not missing out on the "property doubles every 7 years".
Personally I think you need to have clear in your mind what you want to achieve from investing in your property given your individual circumstances and proceed to move towards that goal.
A buyer's agents - especially Binvested- can only offer what stock they have access to- and that stock may not be suitable for you goals.

When I don't know my next move I don't go for the action for the sake of action. I sit back, bide my time and muster my resources until the next move becomes apparent.

 

[skater]

Like Sim said, my understanding is that Binvested have a catalogue of properties, pre-negotiated, that are accessible to their clients. There are other BA's out there that work in the same way. If the properties they have on their books are the kind of property you are after, then this could work well for you.

Then you have other BA's that work for you alone. You give them the criteria that you want, and they go out and look for it.

When looking at a BA, you also need to use one that specialises in the area you want to buy into. It's no use using a Sydney BA to source properties in WA, for instance.

So, the first thing you probably need to do is to work out what you want from a BA. Where do you want to buy? What sort of property? What kind of return do you want from your investment? What sort of BA do you want to use? How much are you willing to pay?

All these questions, and more, will determine whether or not you will be happy with using a BA.

For instance, you could pick up the phone tomorrow & contact a BA that specialises in really nice properties in the middle ring of Sydney, and tell them that you want a cheap property out West, somewhere. They might find you one, and it might even be a great investment, but you may get better results by using a BA that is located out West, specialising in that area.

 

[Propertunity]

This just tells a buyers agent that you're going to be a pain in the neck and they'd be better off not working with you. Right now most BAs I know are so busy they don't have time for this kind of rubbish.

^ ^ what he said x 2.

 

[knightm]

I think I should set myself a deadline to achieve something, and if I procrastinate and don't do anything, BA is my best route to get rid of my fear.
Cheers for the perspective. I think it's clear what I need to do, and to really challenge myself before taking the plunge. I've got time on my side, which helps a bit

Others have made plenty of good comments above, so I won't repeat. But yes, BA's often have clients who are totally capable of doing everything themselves but for the dreaded 'procrastination'. One very intelligent electrical engineer gave me that as the sole reason he wanted a BA when he signed up. Time is another major one, people knowing they don't have adequate time to do the hunting as well as they would like. Others use it for coaching (Like Keith from SK Investments, he used my BA service for his first one and is now purchasing and renovating on his own - and showing a high degree of commitment that will ensure his success.)

There are a range of models as discussed and if considering you should first know yourself, so you know what you want, then research the BA options, and find the closest fit.

Those that suggest 10 yr guarantees are misunderstanding what a BA is, or does. All investing involves risk. No BA can totally eliminate all market risk forever. To ask them to is to demonstrate a fear based (often employees who are highly concerned with security) mindset. Investing is for grown ups who are prepared to take measured and calculated risks, and own them. BAs reduce SOME risks, by virtue of their experience. No BA is perfect, and no property buyer should ever want to outsource all their risk anyway. I happily get better outcomes, save time and buy experience when I use solicitors, mortgage brokers, and building inspectors, but I still read and learn and grow so I can own my own risks.