Anyone can buy a property - Right?

Yes, they can. However, there are also valid reasons why you might want to enlist the help of someone else. In this article we'll look at the common reasons for using a Buyer's Agent. Okay, but what about costs? Does it cost me to use a buyer’s agent? They short answer is yes it costs, the longer but the end cost can actually save you money and you could and often are better off if you buy with a buyer’s agent. We discuss costs at the end of the article.

As stated above, there are many reasons why you may want to employ the services of a buyer’s agent, we'll take a look at six common ones:

Local Knowledge;
Buying from interstate or overseas;
Time saving needs;
Negotiation skills;
Finding the right property and finally
Anonymity.

We will discuss each one highlighting how a buyer's agent can assist in that particular need.

Local Knowledge

When we think of local knowledge we typically think of it in terms of directions and landmarks, finding our way around an area and not getting lost, but really that is only half the story. When purchasing a property, land or even a business premise, there are more things that need to be thought about. For example: any current planning applications that might have an impact (road changes, new buildings, change of zoning etc.). If you are purchasing to be near a particular school you need to know if that property falls in to the desired schools catchment area. There have been instances whereby a couple purchased a house in the street to be in the catchment area only to find that they were on the wrong side of the street and there house wasn't in the school catchment area.

Using a Buyer's agent will help you avoid these issues and if you use a reputable buyer’s agent, one that is qualified in real estate and a member of the an industry association like the Real Estate Institute of Queensland (REIQ) they will also have access to the same tools and software as sales real estate agents. This means that they can carry out searches on properties, see their sales or rental histories as well as information about the property that may not have been disclosed. A buyer’s agent will work in your best interest (whereas a Real Estate sale agent is contracted to work in the vendors best interest). Having the detailed knowledge about a property is key when negotiating. The vendors real estate agent is a trained negotiator, it makes sense to have one on your side. You could end saving not only the cost of your buyer’s agent fees, you could end up saving more

Buying from interstate or overseas

When you are looking to buy interstate or even intercontinental quite apart from knowing all the local rules, all the areas to avoid and what is a good deal and what should be avoided how do you go about finding and viewing the property? Take a week off and madly drive around and try to find something that is acceptable? There an easier way. Using a buyer’s agent. Let them source a number of potential properties for you. They can do virtual (video) ours with you or save them and send them to you. Once you found the one , or the selection you want to visit in person they can arrange for them to be viewed in a timeframe that works with you, or in a fast moving market they can be your point person. Being able to tour the property via a video call is a great way to help identify whether or not it’s for you. Your buyer’s agent will do all the normal things you might do on an inspection: check the electrical items all work correctly, check the taps and drains don’t leak, aren’t blocked. Look for signs of movement or obvious pet or pest damage.

Rules and purchase process differ state to state as well as country to country. For example in Queensland, The real estate agents are responsible for the sales contracts and an offer to settlement can be concluded in as little as 30 days, where as in New South Wales contracts are typically handled by solicitors and the purchase process normally takes months not weeks. In England, Solicitors also handle the contracts, but there contracts are not exchanged quite often for 2-4 months, up until this point the house is still on the market, even once the contracts are exchanged settlement can take months to complete. Using a buyer’s agent will give you access to the specifics of the rules in the area in which you are looking to purchase.

Time saving

When you are looking to buy a property whether it’s a home, and investment or a new business premise, it take an amount of time. You might spend a couple of hours on property portals trying to find something, and when you do, it may already be under contract or sold. If you find multiple properties you think might be suitable and then go an visit them that could take a hour each if they are really close, or a day , or even a week if you are travelling a reasonable distance. The point is, it can take a up lot of time. Time is the one commodity that many people do not have an excess of and seems to be the more money you have, the less time you have…

Imagine, just sending an email or making a call was all it took to find your next property… Well that’s the job of a buyer’s agent. They do all the time consuming work, gathering all the information, doing the research, providing you with a clear summary of the properties that match your criteria with a simple plus’s and minus’s summary for you. Rather than jump in you car, helicopter or plane to visit them, your buyer’s agent can take you on video tour, you don’t even need to leave your desk. You can relax in the knowledge that the buyer’s agent has your interests as their priority and will point out all the important issues, not the just the ones the sales agent wants you to see

Negotiation skills

When you sell your property, you engage the services of a sales agent. They typically have the best chance of find you the best buyer, but more importantly, they train in the art of negotiation. Many of you will be excellent negotiators too, that goes without needing to be said, however, The real estate sales agent will have all the facts about the property and be able to bring these in to justify their price position and maybe as important, they are able to keep emotion out of it. Buying on the other hand is often full of emotion and rarely does the buyer have all the relevant details that could be used in a price negotiation.

Many buyers will use the contents of a building a pest report to try and reduce an agreed price of a purchase (a Building pest report, by necessity is full of legal disclaimers that can make a property sound much worst than it is) if you are relying on this tactic to get a lower a price it might not work. A buyer’s agent, is basically a real estate agent that only works for the buyer, they have same access to the property information as the sellers agent. The buyer’s agent will also have detailed information other similar properties in the area which may have a bearing on the value / purchase price of the property. They are also a highly skilled negotiator and working for you. Quite often a buyer’s agent will be able to negotiate a price lower than the buyer was willing to pay, in fact many buyer’s agents will work hard to get a reduced price for their client that also covers the cost of their fees.

Finding the right property

Simple right? Well, no, not always. You know the basics, what’s on your must haves and your wish lists. What about all the subjective stuff? Many buyers talk about the ‘feel’: “This house just felt right, the moment I walked in the door”. How do you search for the ‘feel’ factor?

Another subjective often mentioned by buyers is ‘The look’. Two identically specified houses on similar streets and one has it the other not. When asked what it is, the buyer says “Well, this one just ‘looked’ right for us”. Again, how do you define or search for that? Buyers that place a high value on ‘Look’ and ’Feel’ can often end up in an endless loop of viewing properties and ruling them out because of one or the other and often become jaded or left in a feeling of ‘its too hard!’.

How can a buyer’s agent help in this circumstance? There is no simple magical answer, but there is experience. After spending time with you, your agent will have clear idea of your ‘must haves’ and your ‘wish list’ wants, but more importantly they will have more of an understanding of you and what subjective must haves and wants are important to you. They will overlay this with the features and requirements of the property you’re looking for and locate properties that more closely match what it is you want. Again, really useful for buyers searching out of their current area, of for buyers that are time poor.

Anonymity

Why might anyone want to remain anonymous ? Aside from the celebrities there are many people who wish to remain unknown to the seller. It’s quite common in business when purchasing a competitor or when buying complementary businesses when the buyer is likely to get charged a premium based on who they are. This does cross over in to the residential markets too.

One is example is when you are buying an investment property in your street, many owners do not what their neighbours to know. High profile business owners or local community individuals too often do not want publicity or knowledge of their home / investments to be made public and they will buy in the name of a shell-company. Keeping your identity secret would be very hard if you had to attend inspections and auctions in person, that’s where a buyer’s agent comes in. They can attend inspections for you and show you around via Video link, they can also represent you are auctions and act on your behalf, subject to the correct paperwork.