Viewing 20 posts - 1 through 20 (of 29 total)
  • Profile photo of Helen de WalaisHelen de Walais
    Participant
    @hdewalais
    Join Date: 2015
    Post Count: 7

    Hello forum experts

    I am considering if I should use a buyer’s agent for buying a property.
    Has anyone used a buyer’s agent? Did you think it was worth it?
    What are the costs involved? It’s pretty easy to work out rates for real estate agents and rental agents but these guys seem to keep their cards close to their chest.

    Thanks for the feedback!

    Profile photo of superAndrewsuperAndrew
    Participant
    @superandrew
    Join Date: 2014
    Post Count: 188

    It depends how much work you want to do. If you don’t have time but have the money…why not? But if you want to learn and understand the process yourself then you’ll have to do it yourself.

    There is usually no market rate for buyer agents but $9k – 10k seems to be common. Legally they could charge as much as real estate agents.

    Cheers
    Andrew

    superAndrew | Property Analyser and Finder Tool
    https://property-analyser.com.au

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    I’ve got quite a few clients who make use of buyers agents, with great success.

    If you know a particular market like the back of your hand it may not be hugely necessary, but for those buying interstate they can be absolutely invaluable.

    $10k is around the average fee being charged that I’ve seen.

    • This reply was modified 3 years, 9 months ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of BrianBrian
    Participant
    @brian84
    Join Date: 2014
    Post Count: 22

    Although I have not used a buyers agent nor have I purchased my first investment property I think a buyers agent could be an advantage for a person if they are no good at negotiating a better price for the property and for the terms of the purchase. In some cases the buyers agent could negotiate a price that will cover their 10k fee and even more in some cases. I was considering using one when I purchase my first investment property.

    Profile photo of Helen de WalaisHelen de Walais
    Participant
    @hdewalais
    Join Date: 2015
    Post Count: 7

    Thanks so much for the comments, it would be great to hear the experience from someone who had actually used a buyer’s agent.
    I am considering buying in Tasmania and love in Queensland, so I think the distance alone could make this worthwhile.
    I am not finding many buyer’s agents in Tassie though..could be an opportunity!

    Thanks
    Helen

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,975

    I think Rob means “I have been operating for 10 years” rather “They have been operating for 10 years”.

    I am assuming his opening post on the forum is one of self promotion being the principal.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Helen de WalaisHelen de Walais
    Participant
    @hdewalais
    Join Date: 2015
    Post Count: 7

    Yes I gathered that Richard since his name is Rob. Is it against the forum rules to self-promote?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,975

    Hi Helen

    In such a direct way YES.

    Normally courtesy is to offer a few months of forum contribution and help answer a few questions before giving yourself a plug.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    how embarrassing!

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 309

    Yes I gathered that Richard since his name is Rob. Is it against the forum rules to self-promote?

    Welcome to the forum Helen. The purpose of the forum is mutual education. In that spirit anyone in property related industry is welcome to post and comment and even mention their service but we try not to sell so much as to help. This way everyone learns, free of charge (which was always the intention of the place) and anyone interested in contacting a service can see the track record of posts, advice, information etc that has been offered by a service. Usually those only interested in selling don’t last too long. Those interested in property investing for the long term often hang around. See TerryW above for example, some of the best free legal wisdom on the forums with many many people who have been helped. Hopefully Rob is willing to participate on that basis and if so I am sure his business and reputation will benefit. As always doing your own research is a good thing, and there are often testimonials online (here and elsewhere) from happy, or not so happy customers.

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

    Profile photo of Helen de WalaisHelen de Walais
    Participant
    @hdewalais
    Join Date: 2015
    Post Count: 7

    Well it looks like my post has now been hijacked,not bad for a first attempt at a question on this forum!
    @knightm I have searched the forum and have not found anything helpful from anyone who actually *used* a buyer’s agent.
    Which was my question.
    I guess there isn’t anyone on the forum able to share this experience, a shame. I expect that buyer’s agents can provide references though.
    I did find someone in Canberra (through another means) who had used a buyer’s agent and he said he would never do it again due to the problems this caused establishing who the selling agent actually was, to his bank. The bank caused a lot of issues and stress as a result. It was a new apartment and there was a selling company, a real estate agent and a buyer’s agent involved and it did not go well.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    That canberra story doesn’t make sense Banks generally do not care who the seller is, it may be the valuer who wanted to know for valuation reasons. The agent would be clearly on the contract of sale and whether a buyers agent was used or not sure be of no concern to a lender.

    I have bought about 1o properties through buyers agents with fees of around 10k. It can be worthwhile on several levels – time, negotiating and knowledge. A very small percentage saved with negotiating can pay their fee for example.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Helen de WalaisHelen de Walais
    Participant
    @hdewalais
    Join Date: 2015
    Post Count: 7

    Sorry it does not make sense but it is a true story, I met and talked to this guy about it.
    So far this is the only person I have heard from about actually using a buyer’s agent.
    He was happy with the property that the agent found, and the price, it was the paperwork that was a nightmare.
    The bank certainly sounded incompetent. The issue was definitely who the ‘agent’ was.
    Perhaps it was just bad luck but he said he would never use a buyers agent again due to the complexity (it was his first investment property).

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    As a lawyer and a mortgage broker I would say it isn’t true – or there is more to it.

    You must have missed my comments about buyers agents above otherwise he wouldn’t be the only person you have heard from.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 309

    Well it looks like my post has now been hijacked,not bad for a first attempt at a question on this forum!
    @knightm I have searched the forum and have not found anything helpful from anyone who actually *used* a buyer’s agent.
    Which was my question.
    I guess there isn’t anyone on the forum able to share this experience, a shame. I expect that buyer’s agents can provide references though.
    I did find someone in Canberra (through another means) who had used a buyer’s agent and he said he would never do it again due to the problems this caused establishing who the selling agent actually was, to his bank. The bank caused a lot of issues and stress as a result. It was a new apartment and there was a selling company, a real estate agent and a buyer’s agent involved and it did not go well.

    So sorry the original question hasn’t been answered Helen. If you do a general buyers agent search in this forum and spend enough time reading there are some recommendations that are free and independent. To find more in-depth reviews you might need to do some google searches, do a little more digging inside this forum or the other major property forum. REBAA is also a great place to make an enquiry, they are a national body of BA’s and have info and testimonials from many states I think my property hunter in TAS is actually a member so you should be able to do a quality control check through them.

    From the way you describe your referral’s situation it sounds like there may have been 2 selling agents and 1 was masquerading as a “Buyers” agent because they handled the buyer. This does not mean they are licensed and independent. If both parties are on contract or there is dispute as to who then this means both parties are representing the vendor (I am a BA and I have never been listed on a contract) which means both parties probably got paid money by the vendor (whether the service was “free” to the buyer or even if they had a to pay a fee which I have seen) if they both got paid by the vendor then its a dodgy situation and not a true Buyers Agent arrangement. The above is confusing but it happens – In big real estate agencies I sometimes meet a selling agent and they say “oh, I am a buyers agent too” meaning speak with buyers and they may have a partner who spends more time working with the vendor, but they still get paid by the vendor, so they are not really true buyers agents. It gets even murkier with new developments as the developer can pay marketing firms, real estate agents, spruikers who run seminars to advertise their stock etc etc etc. Clear as mud?

    The biggest 2 questions to ask in my mind are:
    1 – How does this person get paid?
    2 – Are they good enough to have a track record of happy clients?

    Keep going you will learn a lot from this.

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

    Profile photo of Helen de WalaisHelen de Walais
    Participant
    @hdewalais
    Join Date: 2015
    Post Count: 7

    Thank you @knightm, yours is a helpful response.
    I did search the forum but obviously what I am looking for is not too easy to find.
    I had not heard of REBAA but I will also look into that, thanks!
    Also your question (1) about the buyer’s agent sounds interesting, my contact said that no fee was payable except on sale.
    Not sure if he paid the BA or not.. but clearly this is a pivotal question!
    From what I have read, a true independent BA would probably need to charge some kind of initial fee, since they do lots of legwork (possibly incurring costs).

    I already learned a LOT from your comments – thank you !

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 309

    No worries Helen. Yes most BA’s will charge an upfront engagement fee to cover research, travel and legwork. I (for example) charge $1500 upfront and the rest later. You should always look for a contract that describes what service they are offering and it should state that they do not get paid by anyone else.

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

    Profile photo of Tristan1Tristan1
    Participant
    @tristan1
    Join Date: 2015
    Post Count: 4

    Helen,

    I’m just in the process of using a Buyer’s agent in Brisbane to purchase my second IP. Just received confirmation on my unconditional approval for a house in Marsden, QLD. All going well the purchase should go ahead.

    At first I was very hesitant to use one. The cost was a little more than I wanted to pay ($8800 Full Service) and given the fact I was looking for a property priced under 300K it was hard to justify. I was also very keen to learn the process of buying and negotiating for future investments. Everyone seems to say you need to do it yourself to learn. I was looking to buy interstate and after looking on the property websites I realized it was going to be quite a daunting task to go alone. Cost of flights and car rental would quickly add up if I was to inspect properties over a couple weekends.

    So I added up the pros and cons of doing it myself or employing a Buyer’s Agent. I figured if I can find a good buyers agent I’m sure they would be a far better negotiator then myself and be able to save me a couple+ thousand on the purchase price. Then I factored in all the properties they will inspect for me and the thorough notes on each property. In the end it was a no brainer. I’m a novice investor and probable likely to pay a higher price and more easily manipulated and guided by agents that would not have my best interests at heart, as well as having limited local knowledge.

    So I employed my buyer’s agent. It’s been the best thing I have done. My Agent has inspected close to 30 properties within my target area. Extensive notes on each property and lots of photos to show you every angle. My property brief was Logan area, 600m2+ Block, rental yield above 6.5%, purchase price below 300K, rental ready with minimum work needed and purchase price under market value. Fantastic advice was given on which properties to offer on and why. I ended up offering on five properties in total. I had my prices that I didn’t want to go above to stay in line with our briefing figures.

    Points to consider for people wondering if they should employ a Buyer’s Agent:
    -A Buyers agent will generally have better local knowledge of an area then you. -A Buyers agent will generally be a better negotiator than you. -A Buyers agent is a great way to keep the emotional attachment out of the purchase as they are crunching numbers as well. –You will generally not have as much time to spend looking for properties as what a Buyer’s Agent would. -You will probably not have as much access to properties as what Buyer’s agent will.

    So, definitely worth it for my situation. Charge around 2% of purchase price, some might negotiate. For me payment is $2200 on engagement and $6600 on settlement.

    Enjoy the read, so far it’s been a fantastic learning experience.

    Profile photo of dangermouse99dangermouse99
    Participant
    @dangermouse99
    Join Date: 2004
    Post Count: 86

    Can anyone recommend a buyers Agent here in Melbourne?? Been looking for a good referral.
    Cheers
    DM

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 309

    DM Jake Milne is in Melbourne he is very good. Working with a company called Qura. Metropole also do good work in inner ring.

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

Viewing 20 posts - 1 through 20 (of 29 total)

You must be logged in to reply to this topic.