Buyers agent early on in property search?

Discussion in 'The Buying & Selling Process' started by pommy, 18th Dec, 2015.

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  1. pommy

    pommy Well-Known Member

    22nd Nov, 2015
    I am considering using a buyers agent for my first IP being in another state. My question is how early to engage the buyers agent. Should I definitely narrow down the suburbs first, type of house etc. or would a BA help me choose this based on more general investment requirements, if I know the city I want to invest in.

    The question is to buyers agents themselves and also people who have used them to do something similar.
  2. Xenia

    Xenia Best Adelaide Property Manager Business Member

    21st Jun, 2015
    507 South Rd ASHFORD SA.
    Yes definitely know what you are looking for, the more specific, the better the final outcome.

    You also need to know your financing capacity
    Property Twins likes this.
  3. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

    18th Jun, 2015
    Sydney, Australia
    Agreed with @Xenia - figure out exactly what you are after, and what will make a perfect investment 'for you'. Everyone's circumstances, and risk profiles are different - so would be worthwhile figuring out what is non-negotiable, and what is not so important.

    Also, as Xenia said, figure out what you can afford (sit down with your broker to map out a plan - look at the big picture), and work backwards from that figure.
    Xenia and Property Twins like this.
  4. Mac Fields

    Mac Fields Well-Known Member

    4th Jul, 2015
    There appears to be 2 groups of BAs - those who will search for a property that fits your criteria and those who say 'leave it to me, but you have to fit in with our criteria'. As part of your initial conversations, you will understand which group your BA fits into. Depending on how passive/active you are as an investor, you will find one group better suited to you over the other.

    Using a BA still doesn't release you from doing your own DD and understanding the fundamentals; 'tis your money!
  5. Travelbug

    Travelbug Well-Known Member

    18th Jun, 2015
    This is important. I've seen people get burnt by just buying the first property a BA shows them. Not every property is suited to everyone, and some are just plain not a good idea. I've got to wonder with some BA's if they are at times clutching at straws with some of the properties presented to clients. I looked at using a BA in Queensland and the first property they sent me that was "perfect for me" was a dog. Bad position (on a busy street, on a crossing, across the road from a high school) and it was ugly. WTF! No thanks.

    I used a BA when I started but I turned down quite a few. Only 1 out of many did I regret. Then I got the confidence to buy on my own.
    I wouldn't have grown my portfolio so fast without that kickstart.
  6. Lisa Parker

    Lisa Parker Property Strategist & Buyers Advocate Business Plus Member

    24th Jun, 2015
    Buyers advocates work in a variety of ways

    1) some only focus in a particular radius of the CBD, a general region or within a certain price point
    2) some have a specific strategy they only recommend and use (you either like that strategy, want that strategy or move on to another BA who is more suited to you)
    3) some are skilled at understanding various strategies and risk profiles and can communicate to you what types of areas and what types of properties within those areas will meet your objectives, match your financial parameters, risk profile and investment strategy.

    I have clients that fall into 3 camps,

    1) a very clear and specific criteria and rough guide to target areas
    2) clients who have no idea about what strategy, what type of property, what price point or area they want to invest in (we start with a strategy meeting in this instance then perform a location analysis so the client can be more informed and choose what type of area and investment understanding the likely outcomes and performance of the property and the opportunities present)
    3) a rough idea about the type of property and areas, clear idea of outcomes they are after (in this case we work together to refine preferences and outcomes and get a firmer brief in place before we begin)

    The best thing to do is contact a variety of BA's and have a chat with them, you will get a good sense of the variety of ways each works and begin to get a feel for what fits you personally the best.

    I agree with the others, even if the Ba does a lot of the research and area analysis for you, it is important that you are empowered with your decisions. You need to verify the information provided and ask good quality questions to ensure you are making decisions that are right for you.

    If you are looking in Melbourne I would happily set up a time to discuss your requirements further.

    Good luck with your search.