Part of my role as co-host of Location Location Location Australia is to promote the advantages of engaging a buyers agent. But I must stress that not all buyers agents are equal, so it’s fair to ask: is it worth getting a buyers agent?
I have recently heard about a few other “buyers agents” or so called advisors, offering to negotiate for a pretty cheap fee. And I discovered that they do no pricing research or strategy development. Without knowledge of value how on earth can they effectively negotiate? It is like bidding at auction without understanding price or strategy. It simply means the person with the deepest pockets buys the property. You could do that yourself. You don’t need to pay someone else to overpay for a property. And if you haven’t overpaid, that’s just good luck.
Once again you could have done that all by yourself. So, is it worth getting a buyers agent if they are inexperienced? No! There are ways to sort out the wheat from the chaff and you should definitely do your due diligence. Ask them these questions and then ask to speak to some of their clients. You can find a questionnaire to reference check potential buyers agents here.
The value-add with an experienced and accomplished buyers agent is that you are given an insight into what constitutes a quality property in the first place. Then a detailed price analysis will give you confidence to pay a certain price and also to know what is too much. And market knowhow and strategy formulation will ensure tactically you have the best opportunity for success.
A good buyers agent will know how to strike and when. When you have had a good buyers agent on your side, you’ll know for certain that it is worth getting a buyers agent.
Published: June 2014
DISCLAIMER: Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.