Buyers Agents - Yes or No?

Dotaguy on 20/10/2020 - 10:23

Looking for peoples' experience/opinions on buyers agents.

Partner and I are looking to buy an investment property, and looking to spend in the low 7 figure range.
We both know and understand that we have a limited understanding of the real estate market, and given the magnitude of this financial decision we want to be sure we've ticked all the boxes and are doing the right thing for us and our future.

I was wondering if people would share their opininons or past experiences with buyers agents and whether this is worth the time/money? From preliminary conversations I've had it doesn't sound like a bad proposition, buyers agent takes a fee (maybe 1-2% of the property or as agreed), which might end up being say up to $15,000 depending on what we buy. Having watched a few auctions it seems like this would just be another bid, or would easily be within the margin of error that a less experienced investor such as me would make.

Thoughts?

Home & Garden

Comments

  • netjock on 20/10/2020 - 10:28

    Buyer agent might know something or they might now. Would $15k of your time be worthwhile to learn a new skill and are you confident about pouring over a lot of information and then not over bidding on the day.

    Yes going to endless auctions are frustrating and at some point you might make a mistake out of frustration. Buyer agent is the person you are paying to keep you calm.

    • Dotaguy on 20/10/2020 - 10:43

      Dunno if its just frustrating, but I suppose in the context of an auction like this for a 1.5m property for example, a single bid would likely wipe out 15k so I'm struggling to weigh up in my head what the cost/benefit is

      • netjock on 20/10/2020 - 10:56

        What does a buyer agent know that is more than you know? They didn't own / build the property. They don't do your job and earn you salary.

        So really all they have is the experience of knowing what the prices are in the local area. All that data is available either you go to auctions every weekend for 6 months as a kind of entertainment / research or you buy the sales data online off one of the data firms.

        Problem with houses is they are like donuts. They all have similar attributes (land + house on it) but they are all slightly different (land size and house) and it isn't one price. I'd suggest you ask one for their standard terms & conditions of contract and there is no guarantee you will get a better deal.

        • Dotaguy on 20/10/2020 - 11:04

          Fair enough, I'll likely be discussing any quotes and then evaluating my optiosn in any case.

  • 87percent on 20/10/2020 - 10:57

    i highly recommend using a buyers agent, not only for your own property but definitely for an investment property. The amount of data we got from our buyers agent was unbelieveable

    • oscargamer on 20/10/2020 - 10:59
      -2

      A financial advisor would be a better person to speak to. IMO

    • Dotaguy on 20/10/2020 - 11:05

      How did you feel about the ROI later on, did it exceed the cost of the agent and do you feel you got your moneys worth?

      • 87percent on 20/10/2020 - 11:29

        well for our actual home, we got it for about $100k under what they originally wanted. We just sat there while our agent bid for us. They charged us a 1.5%, and even after factoring this in, was still under budget for us.

        For our IP, they charged us $5000. We gave them what we wanted, and they found an actual house that was within our budget. It's gone up in value by over $200k because of some recent developments in the area that our buyers agent flagged with us. We never thought we could get a house within our budget as an IP, we were originally looking at units or apartments

        • MegFan on 09/01/2023 - 10:47

          Hi, where did you buy it? Can you recommend your buyer's agent?

    • Ughhh on 20/10/2020 - 11:18

      not only for your own property but definitely for an investment property

      In terms of the investment financial side, or in terms of finding a property that fits what you like eg. location, number of bathrooms, and negotiating price.

      • 87percent on 20/10/2020 - 14:56

        our agent provided us data to look at, and only after looking at the data, we looked at the properties. Just because you like the look of a property, doesn't make it a good investment.

    • conan2000 on 20/10/2020 - 15:15

      @supasaiyan - What buyer's agent did you use? I have been contemplating using one recently as well. I'm happy to pay the fees for a service like this, as I don't have the time to do my own research, and I can't imagine anything worse than spending weekends viewing properties/attending auctions! After I get suggestions on investments I will invest a bit of time and effort to ensure I agree with their recommendations.

      I have used an investment firm to purchase a couple of new build properties in the last 4 years, but the lead time to purchasing and then having something available to rent is too long, so looking at established places now, and trying to find reviews online didn't prove very fruitful.

      • 87percent on 20/10/2020 - 15:18

        i'll pm you

  • fullmetal on 20/10/2020 - 12:08

    It all depends on finding the right person for the job.

  • i like free on 21/10/2020 - 00:31

    I feel a buyers agent is worth the money but it is important to find the right one. They will evaluate your situation as well as assist you in the whole buying process from negotiations, putting in clauses for your contract etc also if work needs to be done my agent has found trades etc to sort it for me. I have used my buyers agent 3 times for investment properties and in the process of purchasing a forth with his help. The time you save is invaluable and the indepth knowledge that is presented is from hours and hours of research which working full time is not something many people would be willing to do. Also once you use a buyers agent they will tell you heat indicators as to what is attractive when looking for a property. I'd also listen to lots of podcasts in the property space. The property couch is apparently a really good one. Smart property investment show is good as it showcases real life investor journies.

  • bohobogan on 13/12/2020 - 00:21

    Yes. After two disasters with seperate agents and their Caveat Emptor all encompassing protection, a good buyer's agent is a must. One agent ignored and deflected us as we tried desperately to sign a contract for weeks. Finally, we discovered he'd sold the property while pretending he hadn't. Why? He'd sold it to the Mortgage lender his agency dealt with. Ripping off his client, lying and denying us the right to purchase and hello, insider trading. The second agent was working with a building inspector and pest inspector. Friends with benefits. Also lied to me about completed pest control to the point of giving me a fake company name and number. Ethical much! We bought the timber pest report because even if done for vendor, your licenced under an act you must adhere to. Luckily we found the termites within the six month cutoff. Two years later and finally have a court date. The agent admitted to beneficiary relationship but they have very good expensive lawyers and we have no money. We'll win against the pest inspector. He's already said he won't pay us. They all have indemnity insurance, but not one wants to claim on it. It increases their premium. Their legal team will bankrupt you first. They've all been caught in lies. Only one will face judgement but all were involved. Buyer beware. A buyer's agent will investigate your property, have impartial, trained inspectors who will look for the hidden flaws, understand the area and it's positive and negative issues. Man. I have spent months of my life reading property acts, pest acts, standard acts, title search, ASIC search, meta data and licence searches. If I had done this initially, I would have avoided every issue and been in a position to negotiate thousands of my property. Do it. Agents are assholes unless you're the vendor 😄

  • indemnity on 09/01/2023 - 15:03

    Used three as I've moved around the country for work.

    Cheap package is about $5k upfront and they will join you for X inspections, recommend the party inspectors (pest, electrical, arborist, structural, etc) and negotiate/bid on your behalf. This level didn't take a cut. Downside is you are still searching listings, probably need to do first inspection yourself then return with the buyers agent. You can easily waste your deposit being indecisive.

    More expensive packages range up to the complete search & secure (e.g. I pay deposit plus % and get keys, that's my interaction).

    Great when I'm time poor, don't know the area or common build issues in that area. Also keeps it unemotional to have a neutral 3rd party tell you to abandon the auction because it's exceeded your criteria.

    Advice: review their insurance, and the insurance of any inspectors they recommend. If it all goes least shaped you can always use their insurance to build a new roof or something. You can call real estate agents in the area for their opinion on the person.

  • casho on 09/01/2023 - 15:26

    Yes, my buyers agent had enormous knowledge, organised all the trades for me for a small renovation, recommended a lower price to buy the house which saved me more than I paid her. Basically $30k worth for $15k, bargain

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