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Difference between property spruiker & buyer's agent.

Discussion in 'The Buying & Selling Process' started by Songo, 11th Aug, 2015.

  1. Songo

    Songo Active Member

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    Hi everyone,

    I'm interested in canvasing some opinions/discussion about how a full service buyer's agent differs from a so called "property spruiker". Both are involved in the key role of property selection and I notice that various property investment "gurus" also act as buyer's advocates. It seems as though the borderline between the two can often appear murky. I'd be particularly interested to hear from either a BA or anyone who advises on property investment professionally, but does not classify themselves as a BA. What makes your service different from what the other offers? Is there even a difference?

    For the record I'm generally pretty skeptical of anyone who preys upon/exploits others lack of knowledge for personal gain. This differs from someone who offers a professional service for a fair price.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    In my mind - a spruiker generally involves someone selling over priced OTP properties and making big $$$

    A BA is generally someone you commission to find you a property based on requirements that you outline. They usually charge a fee for service.

    Cheers

    Jamie
     
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    It's all about how they get paid.

    A (real) BA is purely fee for service - they have no financial interest in the transaction and aren't biased towards any specific property.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The buyers agents I recommend take a fee and find, negotiate and help you settle a property which is selected to meet the criteria decided between yourself and the buyers agent.

    A property spruiker has stock from developers. They're often selling the property to you and taking a commission from the developer. Often they'll represent themselves as working for you, but in effect they're simply selling you the property. They won't recommend a property where they're not getting something from the developer.
     
  5. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Once I tell my requirements,
    - a BA would say "keep dreaming"
    - a spruiker would say "I have the perfect property for you"
     
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  6. ej89

    ej89 Well-Known Member

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    haha crazy how true this is...
     
  7. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    [​IMG]
     
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  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Here's a good distinction...

    Buyers agent, is "Buying". They're helping you to buy the property.

    Property spruiker, is "Spruiking". They're selling you something.

    One works for the buyer, the other works for the seller.
     
  9. wombat777

    wombat777 Well-Known Member Premium Member

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    Maybe a slight amendment - the other works for the seller and themselves in a biased fashion ( the spruiker may have a vested interest 'or cut' in the transaction ).
     
  10. Songo

    Songo Active Member

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    Love it. The perfect spruiker filter....

    I'm after a 2bdrm apartment within 5-10km of Sydney/Melb CBD with views, a lockup garage and courtyard garden for under 500k.
     
  11. Chris White

    Chris White BUYERS AGENTS & PROPERTY MANAGERS Business Member

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    That would be the perfect spruiker filter Songa however, you might repel a few decent buyers agents as well, i.e they may not take you seriously.

    I find that when you are honest and upfront you will attract the right people. You do need a spruiker filter (or BS detector) in your armoury though as it will come in handy from time to time.

    In my opinion forming relationships with individuals and taking the time to learn about how they work, what makes them different and importantly their results is the best way to go for someone considering using a buyers agent.
     
  12. Bayview

    Bayview Well-Known Member

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    I think the difference is about $5k. :)
     
  13. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Just curious what does buyer agent do in this age of internet listing/reviews?

    I know what PS does, he sells me a dream and he makes me feel like I am an investment genius although this feeling last till I sign the contract, but hey I don't have pay my shrink 34567/hr in that period so its all worth it I guess.

    What was the word property spruiker kept throwing at me in my last healing session..... Aha "I am a very astute property investor" ....it feels so good
     
  14. Chris White

    Chris White BUYERS AGENTS & PROPERTY MANAGERS Business Member

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    They should be earning their doe!

    For example, we have sourced the last 4/5 properties for clients off market. With the 4 OMP, the vendors are renting back for a period of time so there is no immediate vacancy. Inviting the vendors to rent back was a sweetner, as selling your home then finding something else to buy immediately can be stressful and difficult - we solved that problem for them.

    The properties were bought very well - we handpick the properties we want to purchase, then approach the vendors (as opposed to settling for the best properties that are listed on the internet.

    I appreciate that if someone has expertise or is a professional at something then you may not want to hire another professional to do something for you if you have the time to do it yourself.

    In my experience though, its what people don't know that ends up costing them money.
     
  15. miked

    miked Well-Known Member

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    I think there's more to it than just finding properties in your budget - they should probably be telling you where to look, whether that's in your state or elsewhere, and giving you properties to choose from. You can of course do it all yourself, but you pay for their time and expertise.

    Do you have the time to be researching properties and suburbs sufficiently to know what property suits you best? (If you have a FT job and some kids, it's harder) If you do have the time, you probably don't need an agent.
     
  16. Be Developer

    Be Developer Property Developer Business Member

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    @Songo

    BA is instrcuted by you and works for you
    Property spruikers are instrcuted by developers and works for developers.

    Separately both works best for their clients.

    But combined,

    BA + property spruiker = you in a hot water
     
  17. Bran

    Bran Well-Known Member

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    I fixed that for you.
     
  18. Be Developer

    Be Developer Property Developer Business Member

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    Hahaha

    Perfect fix!!
     
  19. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I am friends with a very successful, well known developer in Australia and when he needs to get pre-sales pronto, he knows exactly which high pressure marketing professionals, aka property spruikers to engage and the results are astounding. He does pay a higher fee for their services as opposed to 'regular' marketers.
     
  20. Songo

    Songo Active Member

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    Hey really great replies all round! Obviously spruikers do not advertise themselves as such, and they definitely do not disclose whether or not they're receiving commission from a developer. So as a follow up question then, how does one determine whether or not a "property strategist" (which is how they may refer to themselves online etc), is actually working in favour of a developer?

    Lets assume I give my selection criteria upfront as "definitely NOT OTP, and definitely not brand new". From the responses in this thread I would expect the response from a spruiker would be to try to change my opinion on this key point. That of course would be a giant red flag. Are there other red flags though say for spruikers who are more subtle and disguise themselves to look like BAs, yet still have an ulterior agenda than simply offering a client good service?
     
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