Will a real estate agent ever be helpful?

Discussion in 'The Buying & Selling Process' started by Cassandra, 20th Feb, 2021.

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  1. Cassandra

    Cassandra Member

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    Hi, long time lurker, first time poster.

    We are looking at shifting our PPOR to a specific suburb to be closer to work and schools (Canberra).
    Market is hot as you all know and lots of auctions in this suburb. Wondering if there is a way to improve our access to properties here/decrease our purchase price....
    Is there any benefit at all in approaching various real estate agents and telling them we are looking to buy in this suburb? So if someone is selling they can link us up, without bothering to do open houses etc. Or would that never happen as they are trying to make money from the open houses/more commission from auctions?
    What if we also offered for them to sell/rent our current PPOR (also in a reasonably popular suburb), would that give more motivation?

    Similarly, any value in doing a letterbox drop in the area we are interested in with the same offer to residents?

    I'm reluctant to use a buyer's agent in the city we live in, but we have done so when we bought an IP in Brisbane. I wonder if it could be worth it for a popular suburb in the home town.

    Thanks for your advice, we have little experience with real estate agents.
     
  2. Sackie

    Sackie Well-Known Member

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    In very strong markets like today, I don't think any of the above will save you much money really, unless your lucky to get an off market deal below market value.

    Most likely, you'll just have to attend many OFis in the area your interested in. What you should keep in mind though is from the second you arrive at the OFI, good agents will already be sussing you out. They'll want to see if your a genuine buyer and what your willing to pay/approved for. They'll try to ascertain how desperate/vulnerable you are too. You need to put on an act where the agents know your genuine but certainly not desperate to buy and that you actually don't have to buy if you can't get a decent price. You should also attend many OFIs and put offers on all the places you like. Don't set your heart on just one place. It'll make you more desperate if you end up negotiating.

    And in markets like today, doing all that is still a long shot that you won't be paying a premium. But it's a good start.

    Be prepared for agents to ask you your budget, etc. If they know you are selling and cashed up, that almost always will work againt you in any negotiations as they know you can pay more. Certainly when they tell their client they have a buyer who is cashed up, the client will put more pressure on the agent to squeeze you .. I liken it to psychological warfare:)

    So basically I'm saying, be prepared for them with good, unemotional answers and don't give away any more than you need to.

    I've been on the selling side ( current am) many times so that's what I'd be telling my agent. In booming markets, basically go for the kill. Many others will too. Best be prepared.
     
    Last edited: 20th Feb, 2021
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  3. willair

    willair Well-Known Member Premium Member

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    As i know nothing about the area that you intend to invest in---One Agent i have known for a long time told me during the week..It's at the stage in inner Brisbane with all the cashed up ''El-Gringos'' ,just get in line with everyone else..
    Just the way it is ,how long this bull--run will last is any--ones guess ..good luck..
     
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  4. Cassandra

    Cassandra Member

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    Thanks Sackie. Wise advice from a clearly very experienced player! I'm going to an open home today hopefully so I'll keep my cards close to my chest
     
  5. Cassandra

    Cassandra Member

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    Ha! Indeed
    I'm hoping the end of jobkeeper/jobseeker will take a bit of heat out of the market. But seems impossible to predict!
     
  6. Trainee

    Trainee Well-Known Member

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    If you are asking can agents get you a property for a good price (as a buyer, read low).... in a hot market, no.

    They might be able to get you pre open house stuff, but think about it as a seller. Your offer had better be above what they expect to get.
     
    Last edited: 20th Feb, 2021
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  7. Trainee

    Trainee Well-Known Member

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    the irony of your name.

    why are you looking now instead of a year ago? Or two years ago?

    point being, you cant go looking because everything now looks rosy, and then ask how to get an easy buy. Bc the answer to that would be buy when everyone is panicking.
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    A house mover may be more appropriate providing they can lift the house to move it to the preferred location.
     
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  9. Cassandra

    Cassandra Member

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    I did buy a year ago! An IP in Brisbane.
    This purchase is for personal reasons as detailed above.
    Hopefully my name comes true for this prediction
     
  10. Cassandra

    Cassandra Member

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    Hahahaha wouldn't that be amazing! I actually love our current place... If only it were 15 minutes away...
     
  11. Sackie

    Sackie Well-Known Member

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    Good luck for today! :)
     
  12. Millie

    Millie Well-Known Member

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    I think it’s definitely worth it, not so you can get a cheaper price, but the earlier you know, the more time you have to consider it.

    I would hate to be needing to make such an important decision in a mad rush.
     
  13. Player

    Player Well-Known Member

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    In my investing experience of over 35 years, the most helpful real estate agent is the inept one. They are your best friend. :D

    Unfortunately, in the current frenzy even they are not helpful. Houses are literally selling themselves. You could try a letter box drop as you've indicated, however rest assured rea's have that covered seeking listings as there is a shortage of stock.

    @Sackie has offered good suggestions. Play it cool. Show no emotion but be resolute and confident in any offers you make. If agents try to get you to increase your offer or remove items from your terms of offer before they submit your offer, tell them you will not bid against yourself and that the vendor can come back with a counter offer. Of course, I have no idea of what is happening on the ground in Canberra. In my patch, houses are selling within a day or two from listing. They are running expressions of interest with sealed envelopes by end of business as there is no need for a campaign or auction. I've had half a dozen rea's cold call this week in person to gain listings and many letters in the past month from investors to our PO Box for all my Gold Coast holdings, including our home. Crazy times for sure. :confused:

    End of day, it depends how desperate you are to buy now. I'm not sure how much further this frenetic bull market in real estate will last. I'm not saying you will buy cheaper in three or six months time as prices will be higher next year and the year after that, however if stock levels increase, then the market will skew back to some semblance of balance. That will buy time. It is not just demand driving this currently; there is a paucity of stock in most of the hot markets.
     
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  14. Closet

    Closet Well-Known Member

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    I think thats the million dollar question...when will stock increase?...FOMO is creating fear of selling and not getting into the market again...vicious circle!
     
  15. jaybean

    jaybean Well-Known Member

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    Agents are only ever helpful (to buyers) when it's a bad market.
     
  16. Spad

    Spad Well-Known Member

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    Would you sell your current ppor below market value to someone in your exact position? To help them get better value? Ide say no.
     

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