For many prospective property investors, buyer’s agents are associated with affluent clients and properties skewed to the high end. While a significant component of any buyer’s agent’s client base encompasses wealthier buyers, a good buyer’s agent understands how to unlock value for a broad spectrum of real estate budgets.
What Is A Buyer’s Agent?
A buyer’s agent is a licensed professional who searches and evaluates properties on behalf of a client looking to invest in a property. They can also assist in bidding at an auction or in negotiating a property purchase.
Buyer’s agents typically operate in both residential and commercial real estate. Their briefs include working on acquiring investment properties as well as buying owner-occupier homes.
A Day In The Life of A Buyer’s Agent for Investors
Buyers’ agents do a lot more than simply search for suitable investment properties. A buyer’s agent’s key areas of focus include
1. Clarify The Client Brief
A buyer’s agent typically sits down with their client to clarify their brief and identify key criteria including the property type (house, villa, townhouse or apartment), preferred rental yield, the right economic drivers that will bring capital growth and their budget. All of these fit their client’s investment strategy.
Your buyer’s agent should have access to current software that assists in the research process and be highly knowledgeable about the locations that are set for imminent capital growth.
2. Create A Shortlist of Attractive Properties
With their client’s brief in hand, a buyer’s agent will begin a search for properties matching the client’s criteria.
Ideally, an effective buyers’ agent is well-connected with real estate agents, particularly those in the preferred suburbs. They are similarly tapped into the broader property market. This holds out the promise of being shown properties before they hit the open market, together with properties that aren’t advertised.
3. Evaluating Alternative Properties
Buyer’s agents are busy! They may view a dozen properties. However, they are discerning about which properties they show their client. They use their discretion and expertise to save their clients time and effort by thinning out the properties that don’t align with their client’s brief.
4. Conduct Inspections And Bidding On Client’s Behalf At Auction
Property auctions can be intimidating for the uninitiated. Bids can come fast and furious. An auctioneer’s rapid-fire patter can encourage bidders to make bids based on emotions rather than strategy.
Buyer’s agents are auction experts. Their calm, measured presence has been the salvation of many a client’s budget when the first flush of an auction’s excitement is over.
5. Negotiating On Behalf Of Clients During A Private Sale
Buyer’s agents routinely negotiate on behalf of clients to purchase a property. They’ll have an intimate knowledge of the property market. That expertise is pivotal not only in price discussion but in identifying potential problems and advising when or if to withdraw from negotiations.
Are Buyers’ Agents Required To Be Licensed?
Yes, all buyers’ agents must complete detailed specialised training in order to be qualified. REBAA, the Real Estate Buyers Agents Association oversees the professional conduct guidelines for buyers’ agents nationally. Buyers’ agents must also be licensed through the Office of Fair Trading in their respective states or territories.
Why Hire A Buyer’s Agent?
There are five key reasons to consider hiring a buyer’s agent if you’re looking at buying a property:
- If You’re Time Poor: Buying an investment property is always time-consuming, especially if you have a busy schedule. A buyer’s agent can do the hard yards, leaving you to focus on other priorities
- Expertise and Knowledge: Australia’s property market is replete with jargon and confusing regulatory, legal and financial documentation that can be a trap for the inexperienced
- Auction Anxiety: If bidding at a property auction is not your definition of fun, a buyer’s agent can take the stress out of the experience while keeping you on brief and on budget
- New to a suburb or city: The buyer’s agent’s insights and network enable clients to buy investment properties around the country without having to catch planes and spend time ‘looking’ at properties that may not meet their acquisition strategy
- Sound Property Advice: A buyer’s agent can provide sound advice on where to buy and what kind of property to purchase to enjoy future capital growth or realise a solid rental income.
One More Thing
One of the attractions of engaging a buyer’s agent is their network. They can often access off-market properties which are rarely advertised. They also know which builders and developers to approach for a private viewing. Moreover, as expert negotiators, they can frequently secure you a better price, and a faster settlement
Final Observation
A skilled and experienced buyer’s agent generates value for their client by levelling the playing field when it comes to purchasing a property. They also bring the added benefit of streamlining the property buying process while minimising the hassle for their clients.