Buyer's Agents - Worth it or not?

I'm sure this comes up all the time, but what are people's opinions on buyer's agents these days?

Would you do it? And if so, what would you call a reasonable fee?

 

To many variables on the answer... Personally no, but I would maybe consider using a BA if I didn't know what I was doing or location was a pain for inspecting then I might consider.

However on my most recent purchase I bought in Brisbane without inspecting it myself and didn't see the property in person (saw photos online) until we were unconditional. Would I recommend this to a person buying their first home not really but depends on their risk profile as really a B&P and searching online (e.g Google street maps) will show most issues but in saying I did have a family member inspect the property however there was no accountability from their side.

How much is your hourly rate at work? If you are earning 10k per day then their fee is nothing.

If you don't have the expertise and want to pay someone to do the selection/inspecting and provide their DD for you to review then there is a possibility.

There is no Yes/No answer as it all depends on the individuals situation and financial capabilities.

 

@sanpellegrino

If you are starting out, then yes you may find it a useful exercise.

Just make sure they are telling you about the fundamentals and not using a dart board approach.

A number of our clients have worked with locally based BAs, who specialise in their respective areas, and have found it to be a useful exercise, with them buying good quality assets - you do need to make sure you provide your criteria to them - otherwise all properties will look the same.

 

I think the good ones are worthwhile but a lot of variables. And the fee paid to them is also variable depending on how good they are.

I have never used one. I know people who have and loved them.

 

Depends - out of state definitley use BA

Own back yard - DIY assuming you know your ****

Used one on the last purchase and can do better myself next time.

Experience breeds confidence.

 

Too many variables. Need more context. Long story short, for the right scenario and deal they can be worth it. Quite easily worth it imo. I see them as just another weapon in my arsenal of bad boys.

If I was looking for a development site in Perth, I would without a shadow of a doubt engage a Site Finder on here who helps to find suitable sites. The key is to be able to then run your own filter of knowledge and DD over the recommendation.

 

Used one for the first time last year in my own area of brisbane and he found a great property for me and i learn't a lot from the experience. I should also this is an ongoing relationship with them and i would probably use them again for another purchase in the years to come. If you don't have the time to look at lots of properties and area's it's worth the money. But like anything in life one BA is not the same as another and you need to make sure you a comfortable with the service being offered. Once you find a good one they are the fastest and safest method to wealth.

 

If you're buying in a different state, definitely a worthwhile investment. Definitely use one thats based in the state you're buying in, not elsewhere.

A local one will know what type of properties are good/bad in the area and be able to get them for a good price.

There's certainly nothing stopping you from being able to do this yourself. But your time has a value, and so does their expertise.

 

Depends

What is the BA contract to do for you?
Advise on which area?
Find a specific property
Find a property manager
Negotiate the purchase price?

Imagine you paid a BA $20,000 to purchase a $1mil property. They might just save you $20,000 on the purchase price by their negotiation skills.

Also imagine you used a BA 20 years ago to buy a property in Sydney and paid them 2% of the purchase price. $1,200 on a $60,000 property that is now worth $!.2mil - would you regret that fee? (You probably wouldn't even bother to claim it when working out the cost base on sale).

 

Like the old story where 2 lawyers who know each other have 2 clients , and one lawyer tells the other, " We have 2 fat geese here, You pluck 1 and I'll pluck the other "

 

Yes when you look long term it's a small price to pay. For me time was working against me and I need to get it right this time round. I had already lost 6 years in a property that didn't grow. Also the BA I used suggested possible area's, sourced the property for me and negotiated the price with the vendor. It was a great experience from start to finish. Been happy with the purchase as the property has increased in value by about 50/60K in exactly one year.

 

Would the BA tell you not to buy a property if values are looking like falling (e.g. Sydney BA)?

No one can predict the future but the BA only gets paid when you buy a property so they will not talk you out of buying a property but they might say the market is declining so there is a good chance of negotiating a deal doesn't mean this negotiated price is going to be the bottom of the market.

 

Not if they get it wrong its that simple, and you don't know what you don't know.

I have met some investors that have been guided down the wrong path by BA and they have been stuck with dead wood that they could not sell, and worse no growth over the last decade.

Just think about this .......we have had at least 3 property boom cycles since 2013, by simply buying in one of the major Capital cities you could have made money, no BA required, just understanding what is driving a particular market.

MTR

 

We have found the key to working with a BA is having a clear criterion on what will make a good investment for you. I know when starting out, as you call out, it is a case of you don't know what you don't know.

A number of our clients have been purchasing development sites for long term land banking purposes in well located areas, close to transport and fundamentals. This is on the back of our own learnings and the criteria we have followed in our own property journey. Whilst they have worked with a local BA, in absence of clear direction, I think it would have been a 'dart board' approach.

Being clear on your negotiables and non-negotiables is more important than ever due to tightened lending - so you do want to make sure there is future upside with the property.

 

@Property Twins I just noticed I can have a 30 min chat with you for free..

 

Yes, the BA I used advised best state to purchase in at the time as I asked the question. The BA had offices in Sydney, Melbourne and Brisbane. Brisbane was the best option at the time with Sydney and Melbourne close to the top of the cycle. Yes BA only gets paid when you purchase through them and it's always your choice. I was shown many properties that didn't fit either with their criteria or mine before we found a suitable investment grade property.

 

Like anything in life there are good and bad, no different with BA's. The one I found fit my investment strategy before I engaged there services. Simply buying in a capital city is not the answer, some suburbs always outperform others due to a whole range of options. BA's help you
narrow that down. Clearly it's not for you and that's fine. But I have found it to be a powerful tool
to get ahead.

 

Got it all wrong, I am not against BA at all. I am simply stating......beware... investors need to understand market they plan to buy into. Your money your risk. Some investors believe BA have some magical power.

I have used a BA twice many years ago, I come from experience, the good, the bad and the ugly, no rose coloured glasses for me.

If you have had a great experience good for you.

 

Mansfield, Brisbane.