Matthew Hughes, Managing Director at Capital Property Advisory
September 20, 2018
Australians are increasingly seeing the value in engaging help when buying a home, investment property or when attempting a subdivision or development. Demand for the service is growing and more buyer’s agents are popping up around the country all the time.
Here’s five of the main reasons more people are finding value in paying for professional advice when purchasing property.
Buyers are time poor, knowledge poor, or both.
Purchasing real estate may be daunting for those who are unsure about the current state of the property market or what sort of property is right for them.
Others may wish to invest in property but simply don’t have the time to spend in ensuring they make the right investment decision.
A buyer’s agent can help resolve these issues by acting in the best interest of the buyer, across the entire property purchase journey – from market research, to property selection, to due diligence, through to negotiation and finally, settlement.
The investment made in accessing buyer’s agency services can end up being a drop in the ocean compared to what may happen when a property purchase is not well considered or negotiated.
Agents bring balance to the transaction.
When most of us think about real estate transactions, we focus on the selling agent, who is working exclusively to achieve the best possible result for the seller.
It is long overdue for property transactions in Australia to have representation on both the seller and buyer side, providing increased price equity, risk mitigation and peace of mind for all parties.
Selling agents are trained professionals, most with many years of experience in negotiating property contracts, leaving buyers at a disadvantage during the negotiation process.
Having a buyer’s agent on your team ensures that you also have an experienced industry professional on your side of the property transaction, who will expertly navigate this complex process on your behalf.
Expert negotiators of price and terms.
When deals take place, buyer’s agents can provide expert advice and deal with the transaction on behalf of the buyer, negotiating special terms and conditions that someone purchasing a property on their own might never have thought of, in most cases saving the buyer thousands, if not tens of thousands of dollars.
It’s a buyer’s agent’s job to know a property’s true value and negotiate price on behalf of the buyer. Buyer’s agents build relationships with selling agents to help negotiate the best price to provide maximum value for the client.
Setting the right contract conditions are just as imperative as having the ability to secure a below market price. An experienced buyer’s agent should pay for themselves through this process alone.
Agents minimise risk.
A successful property investment doesn’t just come about by chance. The right purchase requires thorough research into target demographics, an understanding of the local rental market, and extensive knowledge of market factors that can influence strong capital growth of investment property.
This is where the expertise of a professional buyer’s agent can be an invaluable asset to a buyer’s investment strategy. In addition to expertly navigating the offer and acceptance process, a buyer’s agent will research, analyse and source the right investment property to suit an investor’s portfolio and goals, substantially increasing the potential for above-market returns.
Buyer’s agents conduct comprehensive research on the best suburbs to target and use extensive knowledge of market factors to identify target areas and properties that will outperform the market and amplify returns exponentially for the investor or home buyer over time.
Strict and comprehensive due diligence processes always ensure a smooth transaction with no hidden, or potentially costly surprises – now, or years from now.
They maximise financial outcomes – especially for investors and developers.
An experienced buyer’s agent not only has access to industry information on the property market, they also have a far reaching and trusted network of property professionals and agents to collaborate with to find the latest, high-prospect properties on the market, or in many cases, before they hit the market.
This means the savvy buyer is already one step ahead when it comes to finding the best properties available.
Whether you’re a first-time investor or a developer, buyers’ agents can conduct in-depth site development investigation that will uncover the highest and best use of a site, in line with planning, subdivision, development feasibility and time and cost contingencies.
Combined with years of experience in the property market and industry knowledge of factors influencing investment, buyer’s agents can offer a level of insight that simply isn’t available with DIY investment.
If you would like to know more about the benefits of engaging a professional buyer’s agent,
contact us today on 08 9323 0000.