Property investment has changed thanks to the Internet. No more browsing with your nose pressed up against a Real Estate agent’s window. No more lost weekends spent pouring over your newspaper’s property section.

The advent of digital real estate portals has transformed your research experience. Now we have access to online auctions, digitised 3-D property fly-throughs, photo and promotional videos and experienced buyer’s agents.

Buyer’s agents assist with professional advice and insights on your planned investment property acquisition. They enjoy extensive knowledge about quality investment properties. They also have a network of Real Estate Agents to tap into identify prospective investment opportunities that match your property investment strategy.

What Does A Buyer’s Agent Do?

A savvy buyer’s agent takes the leg work out of sourcing properties. They understand their client’s investment needs, be it an acquisition for your investment portfolio or a long soughtafter dream home. Your buyer’s agent will take the slog out of assembling a shortlist of properties to assess. They can help you refine your property strategy, and stress test your list of target suburbs.

As part of the process, they’ll identify both the positive and the negative aspects associated with properties on your shortlist and flag any issues a buyer should be aware of.

They can assist in minimising risk by carefully conducting in-depth due diligence and by scrutinising contracts and inspection reports. Your buyer’s agent can also take the heavy lifting out of bidding at an auction or negotiate purchase terms during a private sale on your behalf.

Why You Need A Buyer’s Agent

If these situations feel familiar, a buyer’s agent could be a godsend for you:

• You are time poor and in the acquisition phase of a property investment
• You’re unsure about your negotiator skills and need professional help with negotiating a price and finalising the purchase terms and conditions
• When it’s a seller’s market, competition is fierce, and you keep missing out on properties
• When you are looking for a specific type of property to fit your investment strategy such as a property with subdivision potential and need assistance sourcing it
• When you live overseas and are looking to buy a property in Australia
• When you aren’t sure you have the skills and time to research locations that represent value for money in the current market cycle.

Investing in property can be a complex, time-intensive and frustrating experience. Engaging a buyer’s agent can streamline the process and free up your time and energy. In hiring a buyer’s agent there are a few things to consider:

1. Look For Experience

An effective buyer’s agent must be able to demonstrate five years of hands-on experience specifically as a buyer’s agent at a minimum. Look for someone with the right blend of skills, expertise and property sector knowledge. This often takes years to accumulate, so don’t be bashful in asking them to walk you through their experience.

Similarly, look for street smarts, a nose for an opportunity to identify sound investment properties and the diligence to execute a hassle-free purchase from research to settlement.

2. Conduct Thorough Due Diligence

You do due diligence before considering buying a property, so apply the same rigour when contracting a buyer’s agent. Ask to speak to former clients and request client testimonials and recent case studies. Check how many properties they’ve helped clients to buy in your preferred suburbs. Clarify their average duration time from bid to settlement.

Every client has different requirements and expectations so naturally, their experience will reflect that. However, good due diligence on your prospective buyer’s agent will give you a clearer picture of what type of service you can expect.

3. Ask About Their Professional Network

Check your prospective buyer’s agent can demonstrate deep and wide connections in the industry. Do they have established networks with selling agents, builders and developers they can tap into to access properties before they hit the open market?

Similarly, do they have knowledge of the type of property you are looking at and are familiar with the suburbs at the top of your investment hit list?

Most importantly, is the Buyer’s Agent you are looking to engage a property investor themselves? This ensures that they are looking at potential properties with ‘investor eyes’.

4. Professional Indemnity Insurance

In Australia, it is a legal requirement for all buyer’s agents and agencies to take out Professional Indemnity Insurance. Insurance helps protect you in the event your buyer’s agent is negligent. Be upfront about asking to see their insurance certificate and clarify their level of cover.

5. Clarify Their Fee structure

A buyer’s agent should only represent your interests alone during the acquisition process. There are several alternative fee structures to consider. A typical fee structure is two per cent of the final purchase price, paid either at settlement or when the sale becomes unconditional.
Alternatively, you may negotiate a fixed fee depending on the value of the property. You should also anticipate paying a non-refundable upfront retainer fee upon commencement.

Final Observation

Finally, sage property investment embraces risk mitigation and conducts sound due diligence on your chosen property. Highlight the key benefits and ensure you identify likely risk elements and understand their financial implications before signing your purchase contract