Hi all
Well have been hunting around and now narrowed down on my first couple of suburbs to start in SA. Also found thecontacts for REAs there in those suburbs.
I hope you can help me to build rapport and at the same time get the most useful info from the agents I will contact.
Apart from the general questions and obvious (sometimes the obvious are not obvious to me), can you give me a hand and perhaps let me know :
What info they are able to give?
What should I ask?
What info will they hold back, and how would I get them to reveal these nuggets?I guess the main would be regarding price history, rental returns and history, comparable properties.
I really appreciate everyone’s help.
Thanks all!
Alex
Answers come from the courage to ask
We have found one of the best ways to establish rapport is ongoing contact. Find a reason to call, or visit the office and let them get to know and remember you. I also have a personal policy of leaving the office with the REAs laughing- I try to share a little witty comment as we leave the door- if the last imperssion is with a smile I think that can only help! We give out business cards and flyers to REAs about the type of investing we do.
Be confident to ask questions- aks about anything you want to know and if they can’t answer certain questions about the property ask them to call the owner and find out! Council may also be able to answer some things for you as well, so use them as a resource. It is often hard to get specific personal details about why the owners are selling etc, but ask! You would be surprised what some agents will tell you!
Good luck, it gets easier with every contact!
Mapleleaf
Achieve the Dream!
It comes down to gaining experience.
I remember when i first started i always felt intimidated talking to these estate agents in their neat suits and flash cars.
Now i know all they want is to make a sale. So i just flash a carrot to keep them interested in talking to me.
Fair enough, as agents we get paid out of the vendor’s eventual price, but a cashed up buyer is better than listings that dont sell. Therefore, let the agent know exactly what youre looking for, tell them how flexible you are with those requirements and then a range youre looking to buy in.
Stick to the one agent within each agency so that they think youre only dealing with them – there’s nothing worse than someone who is trying to milk every agent. The agent needs to know you’re keen and not just wasting their time, not just window shopping. Once you’ve convinced them of that, they’re yours.
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Building rapport is all well and good but remember that, as much as a buddy the REA may appear to be with you, they are better friends with the vendor [exhappy]
Their focus is to get the best price for their client (vendor) at a price and on terms and conditions that suit them. And, this is the way it should be! After all, turning the tables for a minute, would you want your REA, who is selling your beloved PPOR, to become so friendly with the buyer that they end up screwing you down in price?
I think not.
Admittedly, there are some sharks out there who do this regardless, but I would like to think those agents are in the minority. The majority of agents are just trying to do their job, but they are honestly caught in a real conflict of interest situation. On the one hand, they have their client who has engaged them to sell on their behalf. Their fiduciary obligation is to the vendor. Fullstop. However, in the majority of their day to day dealings, they are working with us as buyers. They need to establish rapport, build up relationships, locate information on our behalf etc all the while trying to work out a deal that suits both parties.
But, in the end, it’s the VENDOR who pays them. In order for them to do the best job on behalf of their client, they will give out the best possible information about the property that will sway the buyer towards wanting to submit an offer. If that means withholding facts or “not being aware” of certain issues/conditions, then the buyer can’t hold the REA to account here. After all, doing thorough due diligence is one of the most vital keys to purchasing well.
We had a recent example of this very type of situation with a client, who simply wanted us to find out some further information about a an individual property . Naturally, the house looked good, the REA told her it was a “great buy”, the advertising history indicated that the vendors were highly motivated (price reductions over a short period of time after a failed auction) and the client liked the location. What she didn’t know was that over a third of the street was owned by the Housing Commission and that the street had a reputation for being not so salubrious. The recent sales within the immediate area also indicated that the initial asking price was too ambitious anyway. Based on these facts, she learnt valuable information and was then able to walk away without wasting further time considering the property.
Having access to these databases that provide such information is an important part of the purchasing process, and even if you just purchase the reports, it gives you a much better idea of what a fair price estimation should be in any current market.
REA’s are a great place to start when requesting information, but just be aware that they may not tell you all the facts. The rest is up to you- council, sales data, neighbours, other investors with experience in that area, property managers (ask to see Rental Ledger etc), building inspectors etc.
Happy hunting!!Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
Good Buyers Agents like Jacques are well worth speaking to. They do this sort of thing every day and know all the tactics used by the Agents to milk the last dollar from you.
I am talking to one atm about my next project, reasoning that their costs will easily be covered by the price she will negotiate as well as the time I will save researching the areas.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
And time is not something that most people have an awful lot of these days. Why limit yourself to looking at properties on Saturdays with the hordes of others?
Many a deal has been done during the week, before a property evens holds its first open house.Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
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