Purchasing a property can be time consuming, stressful and most people can feel completely out of their depth. The beauty of buying an investment property is that it’s all about the numbers. Unlike a home for you to live in there is very little emotion involved, well at least there shouldn’t be.
More and more people are engaging a Buyers’ Agent to help take the guess work out of buying property and save time. Here is the lowdown on how they can give you an advantage in a changing market, along with the benefits and costs involved. All Buyer’s Agents must hold a licence from fair trading. There are a number of services that they offer.
What services do they offer?
The first, which is by far the most popular, is the full service search. This includes inspecting properties that fit your brief, on, pre and off-market. Appraising the properties, conducting the due diligence and negotiating the best price. The second service is for buyers interested in doing their own searches and engaging someone to help evaluate and negotiate. The last is an auction bidding service. Most people find auctions emotive and stressful. Having a professional on your side helping you, can remove the emotion and stress from the process and can cost as little as $500 plus gst.
How much does it cost?
Most Buyer’s Agents will charge between 1-2 per cent of the value of the property depending on their experience. Most will also charge a retainer up front ranging from $2,500-5,000 and the remainder is paid on exchange of contracts. So is this value for money? The top benefits of using a professional in helping you buy property are: Time savings – This is by far the biggest benefit.
Buyer’s Agents’ can expedite the buying process meaning you can move on with growing your investment portfolio.
Negotiation
They are professional negotiators and undertake rigorous due diligence on pricing to make sure they get the best deal for their clients. Access to secret listings – Off-market sales have increased exponentially from previous years and having a Buyer’s Agent representing you, allows you access to these secret addresses. Even in a downturned market we see people out of their depth with negotiating and can easily overpay.
End result
It’s important to take into consideration the time you spend looking for an investment property. There is an opportunity cost associated with missing out on great properties. Add to this, not all people are seasoned negotiators which means you could easily over pay for a property. As we said at the beginning property investment is all about the numbers stacking up and buying well is the first piece of that puzzle.
So if you would like to have your own “secret agent working on your side why not give us a call”? We can put you in touch with Amanda Gould who heads up our Buyers Agency service.
