Poll- Used a buyers agent?

As to whether a BA adds value for you depends on a number of factors including your knowledge and level of confidence, and your geographical location in relation to the target purchase area.

Not all properties are available for purchase on the open market - a BA who is well-connected may have access to off-market opportunities that nobody else ever hears about. When that mixes with a property in a good location it's a very powerful combination.

 

I am currently using a BA to buy a IP despite living in the area. However, the fees are $900 engagement plus 1% on purchase price.

The thing is, whilst I am doing a lot of research, there are certain things where he definitely trumps me. For example a property I am currently interested in has apparently been on the market for 8 months despite the fact it presents itself as only being listed in April.

I cant find this info on the usual sites that I have looked at (ie onthehouse often states previous attempts to sell or list house but doesnt for this one).

He negotiates like a shark, and prevents me getting emotional and jumping up significantly in my counter offers. Also, particularly with younger RE agents, I can tell the effect that his presence and confidence has on them. It stops them from trying to pull the wool over us.

I strongly believe that his fee will be more than covered by the discount negotiated on price compared to what I would negotiate myself.

For inexperienced (although definitely doing homework) investors, I can see the benefits. Even just down to watching him talk to the actual owner who turned up after inspection- he managed to find out where the owner was off to next, when he had to leave by, and even grilled him (politely) about what might be wrong with the property.

I will learn from all of this and perhaps not need a BA next IP.
So i also consider this an investment in my own knowledge.
This is my third property buying that I am undertaking, so it isn’t my first rodeo, just my first IP rodeo.

I do believe there is also still a small off market and pre market advantage to well known/connected BA’s, especially in smaller areas like where I am (Sunny Coast). How advantageous that will be for us during our search is yet to be seen as it’s only been a week.

 

has anyone used BA just to negotiate? care to share your experience thx.

 

@Jacque nice one

 

I engaged a BA to negotiate early this year after I picked a property in Hobart. Fees is around $7k, he managed to secure the property around $13k below my original offer. The experience is quite good overall. I would rate him 8/10.

 

pardon me, I am a bit slow so you were planning (or thought) to pay $13k more prior engaging the BA? and overall you save $6k. thx

 

Sorry, I should make it clearer. For example based on my DD, I valued the property at $500k, that's the max I was willing to pay, of course the lower the better. I gave that number to the BA. He negotiated and got it for $487k which is $13k lower.

 

Price is not the only thing to judge a BA's value by. For many, the time/legwork factor is a huge barrier to moving forward. Other factors include:


- find and shortlist properties meeting your search criteria (saving you a lot of time and leg work).

- research properties to determine a fair price

- inspect a property

- evaluate and negotiate a price on your behalf

- bid at auction

- follow up until the sale is finalized

- provide objective information, advice and support

- access databases and information not readily available to the public, including increased access to properties off market

- eliminate stress by having one representative looking after your needs, rather than dealing with several different selling agents.

 

LOL I had no idea they were filming to put out to their database but I know you're on it now @Leo2413 - didn't see you in the audience that evening?

 

And miss seeing you in action in the flesh? Not in a million