Good morning
I’m a newbie and am looking for some advice on buyers agents. I haven’t heard much about them so think that maybe they are too expensive or not the done thing. What do you think?
Cheers
LeanneThat is a very general question. Some people consider a good BA to be worth their weight in gold. Others feel the opposite.
What would you want them to do for you that you can’t do for yourself? They have expertise, negotiation skills, contacts and a lot of knowledge of their area.
Their fees are often around $5000, but claim to save you more just in negotiation.
Perhaps if you are new to the game their advice may well be worth a lot?
Is up to you.
Cheers,
Simon Macks
Finance Broker
[email protected]
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.
Buyer’s agents are generally used by home buyers rather than investors.
Serious investors do their own research and wouldn’t leave this up to someone else (JVs aside) for fear of error.
In the home buyer market you have specific needs in a home (eg. 5 bedrooms, pool, dlug, contemporary deslowign etc) so things like Capital Growth and Cash F are non-issues. The BA either finds a place that looks/feels right, or they don’t.
For investment purposes, you would have to trust that they have done their due diligence properly. If they haven’t, you stand to lose a lot of money.
Some investors with money/income but not time will opt to Joint Venture with someone who takes on the research role. The partner only stands to gain if the investment does well.
There is also something called Bird-Dogging (I only heard this term on this forum) which may be considered a form of Buyer’s Agent. They are investors who have come upon a deal that for one reason or another they cannot act on, and they offer the details of the deal to another investor for a price. You would expect a proper due diligence report from them outlining the investment property and why it is a goer. You can also recruit one of these people to look specifically for something for you – but keep in mind that they will only pass on a deal that they themselves can’t make use of.
I have found that lots of investors use Buyers Agents. In fact the more properties one buys the less confident the yare to have another professional help them out.
Some people are very busy in their job and couldn’t look at enough places on their own.
Cheers,
Simon Macks
Finance Broker
[email protected]
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.
I’ve purchased around 10 properties using buyer’s agents. All were in areas far from where I was living, so could not check on myself. All were good buys, except one.
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
Leanne,
There are a few that post on this forum. I have had some dealings with one of them, Nigel Kibel, who posts here. He’s very knowledgeable and you could definately do worse than have a chat with him. I have also heard good things about Hunter House Hunters.
Regards
AlistairOriginally posted by calm:Good morning
I’m a newbie and am looking for some advice on buyers agents. I haven’t heard much about them so think that maybe they are too expensive or not the done thing. What do you think?
Cheers
LeanneHI Leanne
Many investors use buyers agents and don’t find them expensive.
It’s not what they charge, it’s how much they save you.
Many members of this forum have taken the time to learn investment techniques and have time to do research. They may not benefit as much from a buyer’s agent as a beginning investor or a busy professional who hasn’t got the time to do the research.
I have known Nigel Kibel who was mentioned in the above post by Alistair for a number of years and he has a lot of industry experience and understands property investment better than most.
He’s got a good reputation.If you are interested in Melbourne I would also suggest you have a look at http://www.buyingmelbourne.com.auThey specialise in finding top performing investments for clients.
How do I know? My wife Pam is a director of the company.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Leanne
We purchased our first two properties using a buyers agent. We gave them specific requirements we wanted from these investment properties and these are positively geared!
We initially considered doing our selves but couldnt get over the fear and the hurdle of what is good deal and what is a bad deal.
So using the buyers agent allowed us to make a start. We have learnt HEAPS from the process of buying these deals…I now have more confidence in buying the next lot ourselves so for us it was definitely worthwhile.
Hope this heaps
Good luck
CandyThanks everyone
Will do further research on buyers agents as I’m really worried about mucking up the first one and then being scared to move ahead. We’ve thought about finding a baby +ve for <$100K ourselves, just so we can find our feet in the whole process. What do you think??
Cheers
LeanneTalk to Mick at Hunter House Hunters – he will help a lot over the phone and is obligation free.
Cheers,
Simon Macks
Finance Broker
[email protected]
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.
I have just used a buyers agent, namely Jack Henderson from Metropole Properties, to buy my first investment property. For me it was a case of someone holding my hand to make the first step. I have learn’t so much from Jack and he has helped me all the way and continues to do so even after the deal has been done. The fee you pay is nothing when down the track you see what a great investment they have sourced for you. I can thoroughly recommend them. Feel free to PM me with any questions.
Regards
Shelley
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