Buyers agent for FHB

Discussion in 'Property Experts' started by PropNuB, 2nd Dec, 2019.

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  1. PropNuB

    PropNuB Well-Known Member

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    Hi All,

    This is one of those QTND on these forums.

    I am looking to buy my first home as a place of residence. I have been looking to purchase for past one year but had no success e.g. missing out on auctions, not knowing how much to offer etc. I have looked at units as well as houses but not been able to make a decision about finalizing something (analysis paralysis!).

    My budget is <1 mill and I am thinking of engaging a buyer's agent to help me make the right decision in terms of my first property. I would like to use this property as an asset to buy an IP eventually.

    I have read mixed views about using a BA on this forum and I am bit unsure about who to engage, if any. Also, some of the fees I have seen is outlandish (16k to 24k).

    So, I am keen to get your thoughts around-
    1. Good buyers agents
    2. Suburb suggestions

    Please note, I have been on these forums for some time now but this is my first post.

    Thanks
     
  2. thatbum

    thatbum Well-Known Member

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    What is it that you're struggling with exactly about the process?

    I don't really understand the need to get a BA involved on what is quite a personal decision in selecting a PPOR.

    Personally I think you'll just end up spending thousands on the BA fee to basically get someone to make a decision for you, and then talk you into settling for that decision. Is that what you want?
     
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  3. Jacque

    Jacque Jacque Parker Premium Member

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    Wow I think that's harsh :eek: As a BA (claiming upfront here) we assist with searching, assessing and negotiating property however as for "making a decision for you" that's totally inaccurate. The decision to purchase is always with the buyer, as we are engaged by them to act in their best interests and have a fiduciary obligation to do so. To do otherwise, by engaging in high pressure tactics would be not only in breach of the legislation under which we operate, but is obviously unethical.

    @PropNuB if you are genuinely interested in finding out if a BA is right for you and your circumstances then check out REBAA (Australia's national body for BAs) and the REI of the state you're interested in buying in. Look for credentials, experience, local knowledge (to where you're planning to buy) and above all, ensure you are 100% happy to move forward with a BA you can trust. Meeting in person is always recommended. There's a lot out there to read. Best wishes.
     
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  4. Trainee

    Trainee Well-Known Member

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    If you are missing out and not knowing what to offer (read: not offering enough) it sounds like you are looking at areas you cant afford on your budget, op. Are you basing your areas and offers on actual comparable sales?
     
  5. thatbum

    thatbum Well-Known Member

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    I'm not suggesting anything inappropriate about what the BA would be doing. They would be doing their job of course.

    But I'm saying the OP sounds like someone who can't even make very basic decisions on the type of property and area for their first PPOR. I don't think the solution is to drop $16k to $24k and have that as a sunk cost motivation to just pick out of a BA shortlist.

    TL:DR I think the OP seems some direction and basic education at this stage.
     
  6. PropNuB

    PropNuB Well-Known Member

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    I am looking at a BA for 'expert' advice and to help me make the 'right' decision not just a decision. As a first purchase I want it set me on the right path.

    I definitely can make a purchase myself but as a newbie I fear I will end up making costly mistake.
     
  7. thatbum

    thatbum Well-Known Member

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    Well if you're talking about "right" in a financial sense (which I imagine you must be), then I would recommend spending 3 to 6 months reading these forums daily and get a sense for a strategy you would like to adopt.

    Because you don't seem to have one.

    I personally don't believe that strategy is something you should be outsourcing to anyone, including a BA.
     
  8. PropNuB

    PropNuB Well-Known Member

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    I am Sydney based so looking to purchase here.

    Could you elaborate a bit more on what you mean by local knowledge?
     
  9. ttn

    ttn Well-Known Member

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    What's the 'right' decision? ;) IMHO there is no 'right' decision, only what you believe at the time (good, bad, okay, ...) and then later on you can 'tell' whether it was the 'right' decision
     
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  10. PropNuB

    PropNuB Well-Known Member

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    I have a rough idea of what I would like to buy in terms of strategy. And yes it was formed out of my reading on this forum (thanks to all the posters) and going to open houses on weekends.

    I am afraid waiting longer to purchase will make it harder to get into the market as the market is moving again.
     
  11. Jacque

    Jacque Jacque Parker Premium Member

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    I'm referring here to local knowledge about a specific suburb/area/town. This encompasses (but isn't limited to) what's happening in the property market on a micro level (days on market, what's selling/what's not selling, demand vs supply, discounting, median prices, rental yields/vacancy rates, impacting development/infrastructure etc) as well as macro (bigger picture economic factors, sentiment etc) It's also about knowing the local agents intimately and how they operate/work/negotiate, what the most common methods of sale are, what the neighbourhood is like (good/bad streets, vibe, reputation, ownership, walkscore, crime etc) Hard to put all in a few sentences but hopefully you get the picture. Think of how well you know your own neighbourhood and you start to build up an idea :)
     
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  12. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  13. spludgey

    spludgey Well-Known Member

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    Buying a PPOR is almost entirely a subjective matter, why on earth would you engage a BA for that?
    Surely you care much more about whether you like the house and the property rather than how much the property might appreciate in value?
     
  14. PropNuB

    PropNuB Well-Known Member

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    I would like to use this property as an asset that I can leverage to buy IP in the next three years. So I want to make sure I am purchasing with least emotional involvement and I feel a good buyers agent can really help with that. I am not an investor at this stage and so I don't want to make any unnecessary mistakes in the beginning.
     
  15. PropNuB

    PropNuB Well-Known Member

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    Thank you for your detailed reply. So, can I interpret this as a suggestion that I should only consider a buyer's agent if they have been operating in the area I want to buy in and avoid a BA who says they cover whole of Sydney? Won't a non area specific BA be able to bring there experience to a new area?
     
  16. spludgey

    spludgey Well-Known Member

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    Only use a BA to buy a PPOR if you'd use a consultant to tell you the time, using your own watch.
     
  17. fols

    fols Well-Known Member

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    Totally disagree with this. I think most first home buyers could benefit from using a good BA.

    Even if it was to conduct DD and negotiate price and terms (if not the full search). Make classic real estate mistakes on your first purchase and it can set you back years. Conversely get it right and it can turbo charge your personal wealth position. And yes, a PPOR should be viewed as a wealth building exercise as well as a lifestyle choice. I think the OP is on point. Good luck to him / her.
     
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  18. Morgs

    Morgs Well-Known Member Business Member

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    A good BA can definitely add value to your situation.

    I've seen this first hand, for instance with some of my own clients who recently purchased. Their only regret having now used a BA for their owner occupied purchase in Sydney was that they should have engaged him earlier, and saved themselves 12 months of fruitless searching.

    I'd suggest you try and find one with strong credentials as an investor themselves, at least have a conversation and see if you think it'll work.
     
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  19. SIG

    SIG New Member

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    Some people don't have time to sit around and read forums all day. If there is a BA that can offer good advice backed by data and has a good track record of investing personally then they could be worth their weight in gold if they steer you in the right direction.
     
  20. thatbum

    thatbum Well-Known Member

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    Yeah but if you don't know anything about property yourself, then its pretty hard to evaluate whether the BA that is in front of you is offering good advice or not.

    Hell reading a lot of the new posts here, a lot of people can't even tell if a BA is a BA or whether it's some marketing guy working for a developer.
     
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