Has anyone used a buyers agent to source properties If so is their charge 2pc? What do they do for their fee other than find a property? Can you negotiate the fee ? Ie on a $20m property the fee is $400k
Good morning @Beano Each BA will have a different pricing structure. Some will be percentage based and some will be flat rate. The service inclusions will also differ from BA to BA, so it is important to understand what the BA will and won't do, and how that fits with your requirement. BAs also tend to specialize in particular geographical areas so where you wish to invest will dictate which BAs there are to choose from.
As per @JacM fees and inclusions vary Eg. due diligence, review of leases etc $400k fee - where do I find a client like that? Fee will be dependent upon what's involved - if this was a small shopping centre with a supermarket anchor and a dozen specialties it is more complex than a stand alone single tenant industrial site of the same value/return.
Commercial sourcing is a very different beast to resi. Fee varies brief to brief depending on complexity and requirements. Eg a straight forward CIP into smsf is a much easier search than an undervalued industrial lot with a realisable highest and best use through redevelopment
A good negotiator will make back more than the 400k in savings. I'm currently using an agent as a pseudo BA on a commercial deal. I'll update you if he gets it, but I'm hoping he acquires it for a reasonable price worth the 2%.
Hi @Barny Macedon/Woodend falls outside of my normal service area for 2016. I would happily take a look at it in the new year if you haven't already purchased by then.
Hi I am just putting 2 and 2 together with your username Barny and that you are looking to buy around Macedon/Woodend. Any chance you are an accountant? Regards, alicudi
No, I failed accounting. Well actually I decided to go to the beach for the day instead of sitting the final exam. Still failed, but beach rocked.
Hi @Beano check out Australia's only national body for buyers agents for some answers to your questions www.rebaa.com.au It's also worth keeping in mind that the majority of BAs in Australia use a fixed fee system rather than a commission. Best of luck with your selection.
You know another thing I like about @Beano? He's successful yet he didn't highjack a thread. Good on you @Beano and @Taku Ekanayake
