Buying an investment property can be time consuming and stressful. The advantage of purchasing an investment property is that it’s all about the numbers. Unlike your dream home there is very little emotion involved, well, at least there shouldn’t be.
We are seeing more people engaging a Buyer’s Agent to help take the guesswork out of buying property and saving time. Here are some tips on how they can give you an advantage in a changing market, along with the benefits and costs involved. All Buyer’s Agents must hold a real estate licence from fair trading.
What type of service do you need?
The first, which is by far the most popular, is the full service search. This includes inspecting properties that fit your brief, on, pre and off-market. Appraising the properties, conducting the due diligence and negotiating the best price. The second service is for buyers interested in doing their own searches and engaging someone to help evaluate and negotiate. The last is an auction bidding service. Most people find auctions emotive and stressful. Having a professional on your side helping you, can remove the emotion and stress from the process.
How much will it cost?
Most Buyer’s Agents will charge between 1-2 per cent of the value of the property depending on their experience. Most will also charge a retainer up front ranging from $2,500-5,000 and the remainder is paid on exchange of contracts.
Buyer’s Agents’ can expedite the buying process meaning you can move on with growing your investment portfolio. You also need to look at the cost of you doing all of this yourself, your time is precious and spending weekends and evenings trawling through properties online is a huge drain on your time.
The power of negotiation.
They are professional negotiators that undertake rigorous due diligence on pricing to make sure they get the best deal for their clients. Access to secret listings (which are off-market sales) have increased exponentially from previous years and having a Buyer’s Agent representing you, allows you access to these secret addresses. Even in a downturned market we see people out of their depth with negotiating and can easily overpay.
It’s all about the numbers.
It’s important to take into consideration the time you spend looking for an investment property. There is an opportunity cost associated with missing out on great properties. Plus, not all people are seasoned negotiators which means you could easily over pay for a property. As we said at the beginning property investment is all about the numbers stacking up and buying well is the first piece of that puzzle.
If you feel you a Buyer’s Agent could be right for you just let us know, we can recommend one of specialists for you.
In a real estate career spanning more than 16 years, Penelope Valentine has held senior, national management roles with McGrath, LJ Hooker and co-founded industry start-ups including Rent360. She also regularly contributes to Real Estate Business, Elite Agent Magazine and speaks at real estate industry events. As co-founder of Sydney-based property management agency Property Alchemy – she works in close consultation with her investors, engaging in careful and considered tenancy selection and management. Results are amplified by identifying the industry’s leading technology to provide timely and detailed reporting and market intelligence to her clients to ensure they are always informed.
Property Alchemy is the genesis of this experience and is now, one of Australia’s most comprehensive and professional, yet highly-personal and approachable property management agencies.