Beware of “Bird Dogs” – from a Bird Dog!

hi barb,
funny you should mention that, same thing happened to me with a guy wanting us to bring our clients to him for of the plan units in auckland!
politely told him no, but not before i scammed a free dinner out of him! [biggrin]

shaun

Lead, Follow or get out of the bloody way

I’d presume a lot of buyers agents listed under the Yellow Pages are nothing more than REA’s?

Buyers’ Agents
Purchasing without the stress

For most of us, buying a home will be the largest and most expensive purchase we will ever make. It will also be the most stressful. However, by choosing to purchase through a buyers agent, you can pass this stress onto someone else.

What is a buyers agent?
It is generally accepted that real estate agents act largely for the vendor and the buyer has to fend for himself. However, this is changing with the emergence of buyers’ agents, who act solely on behalf of the purchaser.

Buyers agents or buyers advocates as they are also known, have only just begun to emerge in Australia. They tend to offer two main advantages: expertise and skill in assessing properties, and the ability to make sure the client gets the property for the lowest possible price.

They are usually former real estate agents that have experience in the whole buying and selling process. Their aim is to find a property for the buyer and negotiate the lowest possible price for their client. In some instances, they can advise against buying particular properties if they do not think they are wise purchases.

The trend towards employing buyers agents is increasing, largely led by the insecurity many people feel about making a sensible purchase at the right price in such an over-heated market. Lack of time is another reason why purchasers turn to agents some people want to purchase but are just too busy to properly research the market. People who have moved from overseas or from interstate are also keen users of buyers agents because of their own lack of knowledge about the area into which they have moved.

Buyers agents perform a number of functions, including:

Sourcing properties;
Inspecting properties for faults and resale prospects;
Valuing properties with comparable sales;
Bidding at auctions;
Negotiating with vendors and real estate agents; and
Advising on settlement matters.
Buyers’ agents will employ a number of tactics to get a property as cheaply as possible for their clients. The techniques they use at auctions can be quite aggressive. One of their advantages is that because of their experience in the real estate industry, they are not afraid to draw attention to themselves. One common tactic is to ask whether a bid is genuine. In Victoria, for example, an auctioneer can take “dummy” bids on behalf of the vendor. Agents can usually spot dummy bids and auctioneers are required to answer honestly if asked if that is what they are.

Agents are also very forward when it comes to asking whether the property is “on the market”, because if it is, then it will be sold to the highest bidder and not passed in. Other approaches may include standing at the front next to the auctioneer, facing the crowd, and making wisecracks or staring at other bidders to intimidate them. Drawing attention to themselves is one of their main aims, as it tends to frighten off other bidders.

Choosing an agent
Like any professional that you employ, you need to check the qualifications of the buyers agent you decide to use. They need to be a qualified real estate agent, preferably with considerable experience in selling. As they will be involved in negotiating with the selling agent, they need the confidence to be able to act on your behalf. Ask to speak to former clients and ascertain how many properties they buy each week or month for them. You should also find out what price range they operate in to ensure they have experience in the type of properties you are interested in purchasing.

Buyers’ agents generally obtain a brief from the client about the type of property they are after and then they deal directly with the vendors, real estate agents or other parties such as accountants, lawyers or trustees. You also need to make sure you understand the cost of dealing with a buyers agent. They usually either take a standard fee for their service or a percentage of the purchase price. The percentage fee can vary according to whether the agent is finding the property and then buying it for you a process known as search and find or just negotiating on a property you have already found.

Usually the fee for a search and find is about 2 per cent of the purchase price, while bidding at an auction will cost you 1 per cent of the purchase price if successful. The costs are tax-deductible for a property investor, but not for an owner-occupier.

Buyers agents are listed in the Yellow Pages of the telephone directory under “Real Estate Buyers’ Agents”. Otherwise you can call the real estate institute in your state. Another place to look is the property buyers agents association of Australia.

Any thoughts on the above?[smiling]

REDWING

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“Like any professional that you employ, you need to check the qualifications of the buyers agent you decide to use. They need to be a qualified real estate agent”

redwing, personally I prefer to deal with people who have qualifications- in any field they are working in- I believe it makes people more accountable- or they may be quality assurance built-in to that profession. It also means one can make complaints to the appropriate governing body, if warranted.

kay henry