I am considering the purchase of a cute 3 bedroom 2 bathroom unit here in town and my question is: As I am not a real whizz kid yet in this property investing game, I would feel a bit better if I had an agent acting on my behalf. I have met an agent that I feel really comfortable with and she is willing to act for me but works for one of the big RE people and has to go through them.
What should I expect from an agent acting on my behalf? She says she will negotiate the price, organise contracts, organise pest and electrical inspections, building inspections etc. up until settlement. What should I expect to pay for this service?
Thanks once again for your wise comments, forum vets.
[biggrin]
sairah
What is she going to charge for this service?
Nearly all of it is very straight forward and easily done by anyone. People here will advise you each step if you need it.
Possibly the real area this person can add value for you is in the negotiation area. Is there a potential for her to negotiate an exceptional discount? Is this something you can’t do yourself?
It might be a simple matter of submitting a low offer and waiting. If rejected then raise your offer slightly.
All the best to you.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sairah,
We have bought several properties privately….
To be honest I’d say you don’t really need an Agent, but you would want to find a good conveyancer to assist you……
It’s not too hard……
When buying a property, very generally speaking you have negotiation on :
1. Price
2. Settlement length
3. Creative….. ( i.e. seller leaving $$ in the deal )
4. Deposit ( 10% is not mandatory…. )
5. Clauses – Subject to finance, pest inspection, building inspection…..Hope this helps..
Cheer
Scott
Pelican Investments
http://www.pelican-invest.comSairah
If it were me, I would be more likely to hire a builder/building inspector(& go with them on the inspections to glean info) until you get a better feel for it. I have had general inspections done before even submitting an offer (almost “office policy”).
Provided you have finance roughly squared away, you don’t need an agent. I just use conveyancer after the offer has been accepted. Scott’s points are also very valid.
Hope this helps a bit.
RegardsPatrick [suave]
Hi Sairah,
I do not recommend doing this for a couple of reasons
1. You will not become a “whizz kid” at property investing if you let someone else do the work for you.
2. They are not cheap and may charge a % of the final price that is not insignificant.If you do end up using the agent you will have to sign a contract to enforce the agreement. Be careful that this agreement suits you. If you want the agent to negotiate on just the “cute” property, ensure this is in the agreement. Otherwise you might find that for a certain period you might have to pay the agent regardless of which property you end up buying and who buys it (you or the agent).
All the best with it.
Tim
P.S Only buy “cute” properties if they are great investments too!
Sairah,
I am by no means a whizz kid at all. Hell, I’ve been stressing out just going through a basic refinance. However this is my first refince so, it’s natural to stress out. Now that it’s nearly complete, I’m looking back on it in hindsight as ‘well, that was no big deal’. As tempting as using a buyer’s agent (and I’m assuming this is what you are doing to whatever degree in the buying process) you are robbing yourself of the most important part of buying ie, the ‘process’. I know you want the best outcome and that baby property but truly, people on this site will answer all the questions you need that arise throughout the buying process (even the dumb questions that ‘I ask’ which often can be the most important). Worse still, is that whoever buy’s on your behalf will be making a profit which is money that belongs to you for maybe the next property? However, the worse thing they are robbing you of is the lesson you’ll learn. I agree with all the above posts.
Good luck!!
Cheers,
Gatsby!Thanks everyone, and I am grateful for your wise words, which I read out to my husband and he agreed with, however, I reluctantly admit to you all that I have signed with the agent anyway.
Reasons for this:
1. She has discounted her price and will do it privately as a favour for me.
2. If I don’t get the price I want, I don’t pay, and the price I want to pay includes her fee.
3. The lady in question has been very helpful to me as a newcomer to both the area and the investing game, and I want to continue a win/win friendship with her.So, as my husband said, why bother asking the question if you’re not going to take the advice? Well, hopefully I will learn to ask the questions earlier next time, because I am still discovering what a goldmine of experience and knowledge this site is.
Still learning, every day![biggrin]
sairah
Sairah,
Pleaselet us know how it all goes – especially having aprofessional negotiate on your behalf,
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Another option would have been to offer the agent a % of the money saved. eg 50% of every dollar saved under a purchase price of $250,000. If the agent negotiated it down to $240,000 they would get $5000.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
