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Becoming a buyer's agent

Discussion in 'The Buying & Selling Process' started by chunho01, 4th Oct, 2015.

  1. chunho01

    chunho01 Member

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    Not the usual IP topic here, but I would really appreciate it if someone working in the industry could share some of their experience as a Buyer's Agent:
    • Is it possible to keep a full-time professional job, and work after-hours and weekends as a buyer's agent? (I am single if that helps)
    • Is completing the Agent's Representative Course and Certificate IV in Property Services with REIV the first step in starting out? Then apply for membership with REIV and REBAA?
    • Ideally I would like to gain experience working for someone first, but is it usual for the agencies in this industry to offer a 'part-time buyer's agent' role to someone fresh?
    • Any tips that I should know, or be warned about?
    I like going through listings and attending opens (even when I am not buying at that time). I also observed that some Chinese buyers are not fluent in English, and are timid around sales agent, I thought I would be able to help them, as I speak both languages fluently.

    Thoughts are much appreciated :)
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    There would be opportunities there for you especiallyif you have mandarin as a second language.

    As a minimum you need to do the certificate of registration but the full licence may be needed.

    There are a few BAs who could provide some specifics for you.
     
  3. pugstar205

    pugstar205 Well-Known Member

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    I don't know much about it but I would suspect that many BAs are either ex property valuers, ex realestate agents or ex property developers (or a combination of all 3).

    From what I've seen/heard a BA is not cheap - I was quoted $8k for undertaking market analysis, selecting appropriate properties for my needs and negotiating on up to three (before additional fees kicked in). For that sort of money I'd want someone with top credentials (a genuine professional) and also someone who invests themselves.

    As SNM says, having mandarin as a second language can't be a bad thing.
     
  4. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    It may be possible to work full time while doing BA work on the side, but it can be difficult to balance communication and also get to new listings before a weekend first open to secure them for a client.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    Pugstar

    I don't mind paying a BA fee if the person I employ is skilled at securing the right property. Its a matter of finding the right BA who can actually make you money. Rare as hens teeth.

    In a booming market it is a tough gig, due to demand and market moving so quickly. BA may not work at all too well in this environment from my experience.

    I employed a BA last Perth boom and I ended up fighting for the same deal, BA was sourcing for his Melb client, not me. How does that work?? am I in a queue ??? The problem is he had so many clients wanting what I wanted.

    The BA could not move on it quick enough, this is a worry.

    I will only use BA if they have expertise in particular area, for me its not simply about buying a house, anyone can do this.

    MTR:)
     
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  6. chunho01

    chunho01 Member

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    I completely agree with you on this one. Personally, I wouldn't justify paying much for someone 'fresh' also (oh, the irony...). I have bought IP before, so I can't see myself handling over the purchase to just anyone...

    Which is where the mandarin skills come in. I see, far too often, the Chinese buyers being led like a blind herd into buying high rises apartments in the CBD with ridiculous money. I simply wish to offer them some sort of guidance, while it may not be as professional, I am certain it would be a wiser purchase. I won't be charging much initially anyway.
     
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  7. MTR

    MTR Well-Known Member Premium Member

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    That's great, you bringing something good to the table.
    If you are passionate about it then just keep working towards it.

    MTR:)
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    You'll need a Cert IV and this will qualify you to work for someone else. I think you need a full REA license to set up your own business.

    If you want to do it part time and keep a full time job, you'll fail. I've seen multiple examples where people take on a sales/commission role part time and plant to quit their full time job when they get some success in the new role. What really happens is when things get tough, they neglect the sales role and ultimately it goes nowhere.

    The better way to approach this is to treat the BA role as full time and your primary employment, and get a second part time job to make ends meet. This will keep you hungry and more determined to make the BA position a success.

    $8k for a BA is cheap, but I do agree, I wouldn't pay that much for a newbie. That said, I wouldn't engage a newbie either. I've I'm investing upwards of $100k of my own money and taking on 4 times that in debt, I want to work with someone who's got some serious experience under their belt. As a result you need to start buy working for someone else to get that track record.
     
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  9. alicudi

    alicudi Well-Known Member

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    Hi

    i would go and get your agent's rep course done. I would then contact all the buyers agents on these forums and any others you can find and tell them who you are, the fact you have done an agent's course, the languages that you speak and that you want to get into the industry. You might find a situation where you can assist some of the current and experienced buyers agents whenever they get customers that speak Mandarin and they will pay you a small fee for doing so. This will get your foot into the industry.

    Regards,

    alicudi
     
  10. pugstar205

    pugstar205 Well-Known Member

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    I totally agree. I decided against it in the Brisbane market as I trust my own knowledge, judgement and DD.

    When I buy interstate I'll probably use one and justify the expense as a cost of doing business.

    What amuses me is that there's no guarantees - the BA can't lose. If the property performs well they'll give themself a pat on the back and want your testimonial for their website; but, if it goes badly ... 'ahhh, that's the market's fault you see'. or 'If you'd been willing to spend a bit more upfront I would've recommeded xxxxx suburb and you would've been less exposed from day 1'.

     
  11. Beelzebub

    Beelzebub Well-Known Member

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    Remember those Chinese buyers are restricted to new constructions. So it's OTP or H&L for them.

    Don't want to get in trouble with the FIRB
     
  12. S.T

    S.T Well-Known Member

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    I'm not selling anything
    Actually, they can buy existing for redevelopment and bulldoze/ start building within 24 months.
     
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  13. Beelzebub

    Beelzebub Well-Known Member

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    That makes sense, fits within the policy objective of encouraging foreign investment and increasing supply. I'd imagine that they couldn't just build one new dwelling though?
     
  14. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Where there's a will, there's a way. :)

    Won't be easy to do "on the side" but you have to start somewhere. Build to a level where you feel comfortable leaving your job (or reducing to part time hours) and you'll be able to solve that issue.

    The BA course is very simple. I did it after hours last year.

    If you want to work independently you'll need to do the full Real Estate licence as well (Also a simple course, but it does involve some work). Though working for someone else would be a great way to learn the ropes.

    Best of luck!
     
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  15. S.T

    S.T Well-Known Member

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    I'm not selling anything
    Only if it's un-inhabitable. lot's of misinformation out there. Have a read of the FIRB stuff here : http://www.firb.gov.au/content/real_estate/residential/available_to_all.asp
     
  16. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No, it is not possible. Clients want purchases negotiated on Monday & Tuesday after your reports following your inspections at Opens on Saturday. Opens are also held Wed & Thurs daytime. Some clients will inspect with you during the week. A BA role is full time.

    That will help you put in the long hours.

    Yes

    You might get a start as a "cadet" junior BA somewhere. But part time won't work, as explained above.

    Plenty, but you'll pick these up on the job.
    That should help.
     
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  17. Coastal

    Coastal Well-Known Member

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    Is it possible to just focus on say 3 suburbs that are close by and do that part time? Or would it still be full time and just take on 1 brief at a time
     
  18. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    If you were engaging a buyers agent, would you use someone who only focus' on 3 suburbs? Given dozens or even hundreds of locations to choose from, that's a very narrow focus.
     
  19. chunho01

    chunho01 Member

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    This is my thought too; I need to start somewhere if I want to enter a new industry. Thanks.

    Appreciate your insights! The first buyer agent has spoken :)

    While I do like properties very much, at this stage I cannot justify completely casting aside my current role, along with my degree and experience in my current industry. I have mortgages to pay..

    If a part-time buyer agent is hard, perhaps to begin with, a part-time sales agent at this early stage might be a better alternative to get started?
     
  20. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No you can't build a business on 3 nearby suburbs. Even if you did, how are you getting to a 3pm Open on a Wednesday if you have another job to be at? Full time BAs would take on 4 x clients at a time normally.