Why 2024 is the year to become a buyers agent
For the same reasons, it makes sense for a buyer to engage a solicitor to represent them when they buy a property, increasingly, property purchasers are seeking out the help of a buyer’s agent to ensure they secure high-quality homes and avoid any problems or pitfalls.
What is a buyer’s agent?
A relatively recent addition to the mainstream Australian property arena, buyers’ agents help property buyers secure the right property for their needs and have the buyer’s interests at heart. This is in contrast to real estate agents whose job it is to achieve the best price for their sellers.
While the Australian buyers’ agent market is relatively underdeveloped, in the US, for example, about 50% of buyers claim to have used a buyer’s agent. In Australia, it’s a growing market with just 3% of buyers currently engaging a buyer’s agent.
The Australian property market
At the moment, we’re seeing a limited supply of properties for sale – and many desperate buyers (and desperate people make mistakes). Many properties never hit the open market, being snapped up (especially in desirable areas) as soon as they’re officially listed for sale or even before. Property investors, in particular, are looking for guidance to find and secure the property that meets their investment goals of wealth creation. In short, they need help to find the right property in the right place at the right price. Generally, this means finding a property that will not only deliver good rental yield but also has capital growth potential.
With interest rates creeping up again, loan approvals are lagging, making the right property choice is vital.
Real estate agents: Why become a buyer’s agent?
Many agents, especially women, in the real estate profession are becoming disillusioned as we are tarred with the same brush as less honourable agents.
I’ve been offering a buyer’s agent course to empower real estate agents to help clients to buy the right property at the right time in the right place for the right price. In the course, you’ll get access to tools, systems and processes that help you make more informed decisions for your clients and satisfy their financial goals.
You’ll learn from case studies as well as from other industry experts and fellow learners. Importantly, you’ll learn how to delve deeply into a client’s motivation to find out what they want to achieve financially and then help them achieve that goal or goals. Let me assure you, that’s a profoundly satisfying feeling.
How a buyer’s agent helps clients
As buyers’ agents we help in many ways, including:
1. Saving time and stress
It can take many months to find a suitable investment property (and that assumes the buyer knows what they’re looking for). If they don’t wish to spend evenings and Saturdays checking out various properties, a buyer’s agent is their best friend.
2. Reducing purchase risk
If property investors aren’t experienced they won’t have access to the data to support a preferred purchase. It’s important to ensure the property or properties the buyers are considering have long-term potential, either for rental yield or capital growth. A buyer’s agent must ask questions such as “Can you afford to service the loan on this property even if you are temporarily out of work?”, “Are there any risks in this suburb or location?”, “What issues did the building and pest inspection highlight?”, “Are there any liens or other restrictions on this property?” and more. These questions will ensure the buyer’s agent can recommend the right property for the right reason; wealth creation.
3. Removing emotion
That charming cottage might appeal to a buyer but as a property investor they have to take into account many other factors like ongoing maintenance, loan servicing and more. As a buyer’s agent, you will steer your clients in the right direction so they purchase a property that’s attractive to quality tenants, with good rental prospects and the potential for capital growth. In short, a buyer’s agent will help a client achieve their wealth creation goals rather than them becoming emotionally attached to a single property. Even as a retiree, a buyer needs a guide to make sure that property they fell in love with is the right one for their next 30 years.
4. Getting access to suitable properties not listed
As the saying goes, ‘You don’t know what you don’t know.’ A smart and connected buyer’s agent can go above and beyond what a real estate agent can, even contacting property owners who hadn’t thought of selling. Of course, first we identify that the location is optimal and the property has income-generating potential. I’ve found often that older people living in the family home are ready to move to the next stage of their lives but feel paralysed. We can help them make the decision to sell while helping our client to secure the right property.
Let me help you create a future in property you’ll love
As a former teacher of kids with special needs, I became adept at complex problem-solving. After switching to real estate, I found I could help clients better as a buyer’s agent, ensuring their interests were paramount. I invite you to join me for a more fulfilling career in property.