If we are looking for a real estate agent to help us source for the investment property, are they eligible to share the commision with the seller agent?
If we are buying an IP, is it recommended to get a title insurance or buiding inspection from experience builder?
How bout property evaluation? we got independent evaluator or the guy from buyer broker[?]
any idea guys? i bump into a buyer agent but they asking for $5k commission flat for sourcing the ip. i am not sure if this is a good approach for beginner. but i really need some help to get me start.
I just need to find out if they could share the commission with seller agent?
hi Milen007
my guess is the vendor pays his commission to the selling agent who keeps it all for himself. the buying agent gets his commission from you.
$5,000 thats a lot of $$$. (thats enough for me to buy 1/2 a house), i believe you should buy your own properties this is part of the learning process. i reckon if you look through the forum there are enough leeds where the smart money is at the moment, and it’s not giving it to a buyers agent. yes get a building inspection if you havedoubts about a property. Valuations always puzzle me, i think by the time i’ve done my research in an area i know what the market value of a property is better than a valuer. All they do is look at what comparable homes in the same area are selling for, you should know this before you even put in offers.
all the best
westanas a starter, you would recommend stay away from the buyer agent? yes i know its plenty of money there for the commission. thats why i need some opinion on this. how much buyer agent usually charge? anyone?
what kind of lead is it westan? you mean the area? region? im in melbourne anyway. i love to start on doing some research on the areas. any suggestion where to start? i go to homepriceguide.com.au and it give pretty good overview on the areas. some other place to keep researching?
G’day Milen…
It is common practice for R/E Agents to do a “conjunction” sale. They split the commission 50/50. The problem with that is, that in a round about way you are really dealing with the vendors agent.
Agents:
A good agent has exclusive listings at the right price and doesn’t need another agent to help him sell his clients property.An agent that is incompetant/dishonest usually has overpriced listings and uses other incompetant agents to help him “crunch” a sale.
Give some thought to employing a competant agent (trust your gut feeling) to source properties for you at 2-3% of the purchase price. This is a fair amount for the right agent that is looking after your best interests. Especially when he/she sees you as a long term client.
In addition, if they have an excellent property manager, you will be well looked after… expect to pay 6% for good property mgt. Even 1% is too much for bad service.
Regarding a building inspection report…get an independent firm to do it…in case you need to sue them one day. Don’t cut corners here.
Wasting your time getting your own valuer because the bank won’t accept it…they will only use a valuer on their own panel.Go searching for a good agent… more grey hairs the better.
Billfromoz
I have a friend in the buyer’s agent business. So far he has found genuinely excellent deals for people and charged 3K for the service.
Many potential clients have been sceptical of course, but those that bought through him have been more than happy I understand.
I think it comes down to whether you have more money vs. time to how much value you would see in this service.
Ben
Hi Bill
yes i could see what you mean there, yep some people are specialised in that field which may be a plus for us investor.
someone did tell me that if you find a good property manager, dun be stingy and just give them more percentage like 8-9% so that they really look after our property. few percentage of the rent wont hurt that much compare to damage taken due to bad tenant. what do you think??
Hi Ben
Where is your friend located? in melbourne? if so, kindly get me his contact number pls
I have a friend in the buyer’s agent business. So far he has found genuinely excellent deals for people and charged 3K for the service.Many potential clients have been sceptical of course, but those that bought through him have been more than happy I understand.
I think it comes down to whether you have more money vs. time to how much value you would see in this service.
Ben
He works out of the Brisbane/Gold Coast area. Feel free to send me an email [email protected] if you’re still interested
cheers,
Ben
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