Many homebuyers and investors feel overwhelmed by the property purchase process.
It doesn’t help that a professional real estate agent represents the seller intending to extract maximum money from the sale.
When we ask prospective property buyers what their biggest concerns are, it’s often a combination of these factors:
- Can’t find the right deal
- Lack of clarity
- Lack of expertise in real estate
- Lack of time
- Fear of making a mistake
- Don’t want to deal with pushy sales agents
Do you relate to some of these concerns?
If so, then this article is for you. So what can you do to even the playing field? Consider using a buyer’s Agent.
So what’s a Buyer’s Agent?
A Buyer’s Agent is a real estate agent who acts on behalf of the buyer in a property transaction. Their role is to work in the buyer’s best interest and conduct various duties such as negotiating, sourcing, researching, and inspecting properties on behalf of the buyer.
Why pay for a Buyer’s Agent when you can do it yourself?
That’s a great question – here are five reasons to work with a Buyer’s Agent:
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Buyer’s Agents are expert negotiators
Like the selling agent, Buyer Agents are well-trained negotiators to get you the best value out of every deal. They aim to protect you in the negotiation process by looking out for your best interests, such as negotiating the best possible price, shielding you from sales tactics, and obtaining favourable terms for your purchase.
Imagine saving an extra $40,000 of the purchase price simply because you have an expert negotiator on your side.
It takes years of deliberate practice to become a professional negotiator, so that’s where professional #investors see value in using a Buyer’s Agent.
2. Buyer’s Agents don’t get emotional
When buying a home or #investment property, it’s normal to get emotional while #investing your hard-earned money.
Science has shown that emotions reduce proper decision-making skills. Have you ever seen an emotional bidder at the auction pay way above market value for a property?
That’s the danger of investing with your heart, not your head. Investing should be pure logic and numbers.
Using a Buyer’s Agent means having an independent third party do the negotiating for you, meaning zero emotions and making a decision based on your best interests.
3. Buyer’s Agent saves you money and makes you money
This may sound counterintuitive as you’re paying the Buyer’s Agent their fees.
However, as mentioned above, overpaying is the number one reason why property investors lose money. You can view the Buyer’s Agent’s fee as #insurance for not only avoiding you from overpaying but also helping you achieve the best possible price for your purchase.
Many buyers agents have had clients for whom they bought 8-12% below market value due to the off-market deals we secured for our clients. That’s a $40k saving on a $500,000 property!
Does that sound like a great deal?
Furthermore, saving money is one thing, but a Buyer’s Agent can help you acquire properties that outperform the market averages. The main contributor to wealth creation in property is capital growth. Most investors never get past 1 or 2 properties because they buy the wrong property that underperforms.
Here’s an example of the benefit of using a Buyer’s Agent for securing you an outperforming asset:
Let’s say the average capital growth for a property is 6%, and you buy that property.
A $500,000 property with a 6% average growth over 20 years will give you a value of about $1,600,000.
If you choose to use an experienced Buyer’s Agent who does the right research and analysis and secures you an outperforming property that grows at 8% instead, your $500,000 property will become $2,330,000. That’s an extra $730,000 over 20 years.
That’s what we mean by a Buyer’s Agent making you money (a lot of it)!
This far outweighs the fees that you pay. And all our client’s feedback has been the same – our fees are nothing compared to what they have profited from in terms of capital growth and positive cash flow.
4. Buyer’s Agent saves you time and stress
Like most clients, you might be a time-poor professional or business owner.
You’re exhausted after work, and the last thing you want to do is spend hours researching properties, spending weekends inspecting properties, and even taking flights. We have known clients who finished 1-2 years doing just that, only to realise they missed out on capital gains.
Engaging a Buyer’s Agent saves you time and stress. Would it be worth it if the property you’re about to buy has the certainty of outperforming the market averages whilst spending no time researching, negotiating and attending inspections?
Don’t get us started with dealing with pushy sales agents and their sales tactics.
5. Buyer’s Agent helps you access off-market deals
Buyer’s Agents source properties full-time, meaning that the right Buyer’s Agent has developed an extensive network of contacts that can offer them access to off-market properties that never hit the market.
These properties tend to have little or no competition, which can be handy in negotiating better terms and prices for their clients.
Good Buyer’s Agents have relationships with selling agents and can connect you to the right building, pest inspector, accountant, mortgage broker and solicitor. A successful property investor needs a good team around them to build a large property portfolio.
Remember, it’s challenging to achieve a full-time result with part-time efforts.
As you can see, using a Buyer’s Agent can save you money, time and stress, and most importantly, protect you from making a poor investment decision.
The most costly mistake is buying a property that underperforms, as the purchase was made based on emotions (and likely overpaying too).
Suppose you want a successful property investment business of high-performing investment properties. Doesn’t it make sense to hire professionals with decades of experience to guide you through the process?
Hopefully, this article clarifies why you should consider using a Buyer’s Agent for your next purchase.
Next steps: If you want to discover how rewarding it can be, feel free to get in touch and we will loo at your servicing ability and refer you to a buyers agent.
Kelvin
