Can sales agents switch to being a buyer’s agent?
Switching sides and working for buyers instead of sellers in real estate is a smart move right now. As time-poor professionals, investors and international buyers are increasingly look to buyer’s agents to help them find and secure their next property, and demand is only going to increase in the coming years.
What’s the difference between a sales agent and a buyer’s agent?
The main difference is that you’re working for the home buyer, who will appoint you to find the right property, and then you’ll either bid at auction or negotiate on their behalf. Another key difference is how you’re paid. Unlike a vendor, a buyer will pay you an upfront retainer and then either a fixed fee or a commission when the home is secured. So unlike sales agents, you get paid upfront, and you get paid even if there is no sale at the end.
Who are your typical clients?
As you know, there are two types of buyers – those looking for a place to call home and those looking for an investment property. As a sales agent, you already possess the skills and experience to help both kinds of buyers. You will have in-depth knowledge of a particular suburb or region and its properties, and you will understand what it means to match a buyer with their perfect home. If you’ve also been selling in an area with lots of landlords and rental properties, you’ll be well-positioned to service those looking for an investment property, too.
What skills and experience can I bring with me?
- Real estate license: As a real estate agent, you need to hold a real estate license for your state. If you are setting up your own buyer’s agency, you will also need to have a license for yourself, plus an agency license. You can read more about licensing on the Real Estate Buyers Association website.
- Existing network of past clients: You’ll already have a network of past clients, and these can become your future clients when they are looking for their next home.
- Estimating a property’s value: Your job is to match a buyer to their perfect home. You’ll know how to accurately assess a home’s value and convey that to your client, along with its ability to generate rental income (if it’s being purchased for investment purposes) or produce steady capital gains.
- Negotiating a favourable deal: One key skill you may not even realise you possess is giving the seller confidence in your client as a suitable buyer. You will be comfortable with the sales process, whether bidding at an auction or negotiating via private treaty. You’ll know how to make a seller choose your client over other potential purchasers because you have ensured that your client has their finances and loan approvals in place or because you can ascertain whether the seller would be swayed by offering a longer or shorter settlement.
- Excellent listening skills: As a sales agent, you’ve already developed well-honed communication and listening skills. You’ve learned how to listen to people, to ask the right questions, and to understand what they are looking for. Buying a home is a significant decision with long-term implications, and you’ll be there to help your client get it right.
- Timing the property market: Particularly in the current market, timing is everything, and having access to off-market properties, ‘silent sales’, and the ability to see opportunities that others have missed will all be things you’re familiar with. One benefit of assisting buyers over sellers is that you have more time, which means less pressure and a longer-term relationship with your clients.
What do I need to learn to become a buyer’s agent?
If you’re already a sales agent, becoming a buyer’s agent is more about adding to your existing skill set rather than starting from scratch. However, there are still things you’ll need to put in place to truly succeed. These include:
- Finding buyers to be clients: You’ll need to learn how to generate leads to find potential buyers, explain the benefits of a buyer’s agent to potential clients, and let them know what they can expect from you. Once they appoint you, you’ll onboard clients with a buyer’s agent agreement – and then, of course, ensure they have a positive experience.
- Property data analysis: Because you’re helping a client invest their money, you need to be able to analyse data and other sources to assess the intrinsic value of potential properties to a high degree of accuracy. In this sense, you are more of a property consultant and advisor, so it’s essential to do your research and understand the market inside out.
- Befriend other sales agents: Building and utilising a network of contacts for all aspects of the process, including sales agents and relevant experts in building assessment so you can be sure a particular property is suitable and sound and your price is fair.
- Longer client engagements: Clients may be too busy to engage with the property search themselves, so you’ll have more responsibility for handling the entire journey, from identifying the right home to attending inspections and auctions, negotiating, and handling the sales contract. If your clients are overseas, you are also a default relocation agent and will need to be up to speed on local schools, for example.
- Greater geographical coverage: Unlike a sales agent, a buyer’s agent will expand their property search beyond a small area, particularly for investor clients who may be looking for cheaper properties in areas with more rentals. If you’re a sales agent who loves researching property trends and prices and finding the next growing suburb, becoming a buyer’s agent will be a great experience for you. You will be inspecting a lot of properties, so you need to have a confident eye and plenty of energy!
Want to learn more? Give me a call today
As a buyer’s agent myself, I have a lot of experience and wisdom to share, and I train sales agents who want to make the leap. Please get in touch with me today if you’re thinking of a career shift and have any questions or would like to find out more about my Buyers Agent Courses, mentoring and high-quality coaching.