Concerns about potential buyer-agent

Hi, I'm new here so forgive me if I've done anything wrong. I'm really worried because I've signed up with a company called Latte Property run by Darryl Simms and would like to know if anyone has bought and sold property through him before?

I was warned by another buyer-agent that I would lose money if I sold a property bought through him and to absolutely not to buy through this company. I'm not sure who to believe.

Are buyer-agents reputable and is it advisable to use one?

Thanks in advance.

 

I have never dealt with them...

However in looking at the website are the a BA or a REA?

I don't know many BA that actually list a property for sale

 

There seem to be some people on these forums that have had success with buyer agents but there is no way to quantify whether or not that worked for them. Any investment has risks and you should always do your own research on anything you put money into. Had a quick look at the website and he has a background in sales and charity work but could see no professional qualifications listed. Ultimately, you need to be happy with the purchase of a service or advice and you need to understand anything you invest in as winning or losing it affects you.

 

I'm not sure, I assumed he was a buyers-agent but I could be wrong.

 

This is good advice!

 

Thanks for the reply. It costs $825 for 6 properties but there were varying prices for different numbers of properties, so it is a payed service. I'm aware that it's risky to buy new properties, but not clear on why. Could you please help me understand?

 

$825 isn't a buyers agents fees. Most BAs charge $10k or more. My gues is that this is a nominal amount to get you to commit and have a fear of losing $825. It definitely doesn't cover the costs of running a legitimate BA business.

The reason why this is risky is because they may be inflating the price of the property to include a fee. I've seen cases where companies will add $40k or more to the property purchase price for their cut. The purchaser pays significantly higher than the actual value of the property.

By my definition, these people aren't buyers agents. They're sales agents working for developers. That's fine if they're upfront about it, but calling themselves BAs is quite deceptive.

 

$825 for a BA service you will get what you pay for.

Typically a BA or REA will be charging about 10k minimum so if he is charging you $825 you might need to question who is he working for more.

I wouldn't need to ask him though..

 

Thanks for the help. He didn't call himself a buyers-agent, I called him that for lack of a better term. He did say that "most people charge $10k or more but I don't" though. Does this mean if I bought a house through him, I'd lose money if I sold it?

 

Not necessarily but if they have added 50k to the price and the market drops 50k then you have lost 100k (plus selling costs) on the investment unless you hold out until it becomes better.

If they have added 50k and the property went up 100k then you made 50k (less selling costs) but you overpaid by 50k.

If you don't over pay then it is up to what the market has done

 

Thanks heaps for the advice. Do you think it's worth paying for a quality BA?

 

I'd recommend a BA over an off the plan marketing company any day. Lots of my clients use BAs and I've used BAs in my own purchases. You'll find plenty of recommendations for BAs from various locations on this forum.

 

Sounds like a property spruiker in disguise - How To Spot A Property Spruiker? - The Property Couch

 

A quick an easy way to spot if they are a spruiker. Did they ask you what you wanted to achieve through investing or just tell you what you would achieve by using their services?

 

Hi @kirsty2711 he cannot be an independent BA if he lists property for sale. For completely independent service you need to find a buyers agent who acts ONLY for and gets paid by BUYERS ONLY. Read more on what an exclusive BA is on the REBAA website and best of luck with your search
Buyer’s Agents | Real Estate Buyers Agents Association of Australia (REBAA) Inc

 

Quite a few will ask you but then draw you to what they have by relating it.

 

BAs arent allowed to sell property as a BA cant act as a vendor and seller agent OR sell property as an agent unless they are a REA so they wont have a BA license. In any state. You WILL be ripped off. Is that too obvious.

 

Before that, spend the time and money (for a few books) to learn enough to assess your advisors.