Hi guys,
I’m interested to get an idea from the forum as to how many investors rely of agents to find them property or whether they source their own property?
There are obviously advantages and disadvantages in both, but overall, i have seemed to source the best deals myself and not using an estate agent (although i have used them in the past).
Look forward to hearing from you guys.
Regards,
RobbieHi Robbie,
I was always curious to know do agents exist independently of real estate agencies? Or do you mean, asking an agent that works at a certain real estate agency to find you something that meets yours requirements (from the selection in their agency of course)
I just scope out properties myself, my guess is 99% of people do this but i’d love to be told otherwise. In fact I want to find an agent that could do all the hard work for me, but they should be independent people not associated with any particular agency for obvious reasons do such freelance agents exist?
Do you mean a buyers agent?
I used a buyers agent to find me a couple. I was on their books but was still actively looking myself. They knew my brief. They found something that was well below market value so I bought it. I was still buying myself also.
Decent buyers agents have contacts and can get stuff not listed or get behind the scenes knowledge that you don't have. Therefore they can get deals that you wouldn't necessarily know about.
Having an agent do the work for you and you yourself getting the work done won't matter until you get the work done without much of a problem either way. But, most people prefer agent working independently as they are tend to provide better result with respect to cost effective factors attached. I think that this will without a doubt reap better results in the long run.
I think what i was refereeing to is agents (working for agencies) who advertise properties on sites such as Doman / RealEstate will always be representing the seller, which means they always going to try get a much a possible for their clients property, so you never really going to get a good deal buying property through these kinds of agents.
I guess a better use of an agent would be a buyer’s agent. I guess a buyer’s agent would represent and have the interests of the buyer at hand. I guess a buyers agent would need to work independently? My next question is.. if a buyers agents represents the buyer, how does he lock a seller into a deal with no mandate in place and does the buyer pay for the agents commission? What commission do buyers agents usually charge?
RobbieP wrote:I think what i was refereeing to is agents (working for agencies) who advertise properties on sites such as Doman / RealEstate will always be representing the seller, which means they always going to try get a much a possible for their clients property, so you never really going to get a good deal buying property through these kinds of agents. I guess a better use of an agent would be a buyer’s agent. I guess a buyer’s agent would represent and have the interests of the buyer at hand. I guess a buyers agent would need to work independently? My next question is.. if a buyers agents represents the buyer, how does he lock a seller into a deal with no mandate in place and does the buyer pay for the agents commission? What commission do buyers agents usually charge?An independent Buyers Agent will be representing the buyer's best interests and their interests only. A selling agent is obliged to represent the best interests of the seller and is not working for the buyer. It's a clear distinction, have a look at where the money is coming from to pay the agent and that is who they will be representing.
A genuine Buyers Agent will be charging a fee to the buyer, these fees vary but a decent rule of thumb would be around 2% as a general guide for a full service search and secure.
RobbieP wrote:.. My next question is.. if a buyers agents represents the buyer, how does he lock a seller into a deal with no mandate in place and does the buyer pay for the agents commission?..Robbie in QLD the legal document is a form 22a, the form to engage a buying or selling agent, this is the required legal form that is both supposed to offer the agent protection for their commission and the buyer potential recourse if the agent doesn't fulfill their legal requirements. The buyer should be paying the agent yes.
Thanks..
How do you go about finding a buyers agent if they work independently?
Generally speaking, do buyers agents only operate in a certain areas?
Lastly, with regards to a buyers agents fee, is this something that would beed to be included in the contract / offer to purchase? i.e
Lets say a buyers agent found a property for $98 000, could the $2k fee be included in the purchase price. If it is structred like this, the buyer can use the bank finance to assit paying the buyers agent fee.
OR
If a buyers agent found a property for $98k, would you need to pay the agent the $2k separately? i.e. not included in the contract / offer to purchase?
Andrew_A wrote:Robbie in QLD the legal document is a form 22a, the form to engage a buying or selling agent, this is the required legal form that is both supposed to offer the agent protection for their commission and the buyer potential recourse if the agent doesn't fulfill their legal requirements.Why would a seller sign a form 22a with a buyers agents when he could sign one with a normal agent, who would be looking after his interests better?
RobbieP wrote:Thanks..How do you go about finding a buyers agent if they work independently?
Generally speaking, do buyers agents only operate in a certain areas?
Lastly, with regards to a buyers agents fee, is this something that would beed to be included in the contract / offer to purchase? i.e
Lets say a buyers agent found a property for $98 000, could the $2k fee be included in the purchase price. If it is structred like this, the buyer can use the bank finance to assit paying the buyers agent fee.
OR
If a buyers agent found a property for $98k, would you need to pay the agent the $2k separately? i.e. not included in the contract / offer to purchase?
Yes the fee has to be paid separately and can't be included in the contract price.
Ideally a BA will have a defined focus area they know very well, somewhere they are physically present most of the time.
A good place to start looking would be with REBAA (Real Estate Buyers Agents Association of Australia) accredited agents http://www.rebaa.com.au/
RobbieP wrote:Andrew_A wrote:Robbie in QLD the legal document is a form 22a, the form to engage a buying or selling agent, this is the required legal form that is both supposed to offer the agent protection for their commission and the buyer potential recourse if the agent doesn't fulfill their legal requirements.Why would a seller sign a form 22a with a buyers agents when he could sign one with a normal agent, who would be looking after his interests better?
The seller doesn't sign this form with the BA, the buyer does. The seller will sign a form 22a with the selling agent (unless not using a sales agent) and they will market the property.
You are not required to use a buying or selling agent when buying or selling property, just that most choose to use a sales agent when selling and increasingly more buyers are deciding to use BA's when buying, hope that clears things up.
Thanks!
Question: If you are a buyers agents and you source a property from a seller, who isnt using a sales agent, how do you lock in the seller?
For example, if a BAs finds a property where the seller doesnt have an sales agent, then the BA offered this property to a buyer, what is stopping the seller from accepting offers from other BA's or private buyers?
I think this term is refered to a 'gazumping'
Robbie you would normally lock the seller in with a contract of sale, the seller is entitled to look for other offers always and you won't have control until it's under contract. If you are referring to verbal agreements then yes they aren't binding, once there is a legal contract of sale the buyer has a large degree of control with QLD contract law.
Robbie to put it simply- you engage a buyers agent to look for a property for you. You usually pay a small fee up front and the agent will discuss what you are looking for, price range etc.
Then they start looking. When they find something that suits you, you look at it (maybe) and if you want it you follow the same process as you would any other purchase. ie sign a contract.
Buyers agents have good relations (in a helpful way
) with sellers agents and often have info that you wouldn't have. Pick an area and get an agent that knows the area very well. I have used an agent a couple of times when I've been too flat out to look myself. I keep my name on the list but still look myself now also. If they come up with something I like I buy it. They know my criteria so ring me if something suits. They know I can move fast so if something great (way under market) comes up but you need to run there and sign now in order to secure it they know I can do that.
Last year I ran out of work in my lunch hour to buy as place. Great villa, under market, no work to do, great tenant. Put the rent up. It's CF neutral and it's gained 20% on my purchase price. NICE!!Thanks guys..
What is the best way to go about finding a independent buyers agent? I have targeted a few areas which I'm interested in buying in, so now i need to find buyers agents who deals in these areas.
I guess there would be no point contacting the major estate agents in the area as they generally act on behalf of the seller?
RobbieP wrote:Thanks guys..What is the best way to go about finding a independent buyers agent? I have targeted a few areas which I'm interested in buying in, so now i need to find buyers agents who deals in these areas.
There are a few that post here and on other forums. Name you target areas. I know a few (depending on your area).
RobbieP wrote:I guess there would be no point contacting the major estate agents in the area as they generally act on behalf of the seller?correct
forsaleforlease.com.au will get your private sale into all the major portals for $495 last time I looked.
So why use an agent? Everybody knows that realestate.com.au is the source for buyers.
So as Mr Meldrom would say, do yourself a favour and if you have to discount, take off the coms of what an agent would have got.
) with sellers agents and often have info that you wouldn't have. Pick an area and get an agent that knows the area very well. I have used an agent a couple of times when I've been too flat out to look myself. I keep my name on the list but still look myself now also. If they come up with something I like I buy it. They know my criteria so ring me if something suits. They know I can move fast so if something great (way under market) comes up but you need to run there and sign now in order to secure it they know I can do that. 
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