Since introducing Buyer's agents into Sydney back in 1997, Peter kelaher Director of PK Property Search & Negotiators says there are now more than 150 operating Australia wide.
He said it only made sense to create a level playing field in the negotiation. Purchasing property is not something a buyer is involved in on a weekly or monthly basis; actually statistics say that is more like every seven years that the average person moves home. Having a professional negotiator giving you independent advice can save you thousands of dollars, prevent costly mistakes and save you a lot of time and unwanted stress. Buyer's agents cover all phases of the purchasing process - from finding the right property and determining its true market value, to negotiating the best possible purchase price, and bidding on your behalf at auction.
Buyer's agents should be fully licensed real estate agents and have a background of many years as a selling agent, so that they can use those tricks of the trade to negotiate you a great price. Purchasing property can be an emotional process, and should you not be educated to the present market there is a good chance emotion will get in the way, with the end result being that you have paid too much. Below are some helpful tips that might just end up saving you a lot of money and wasted time.
- Do your research: There are many companies now that offer a service where by you can by printouts of recent sales in the area. Drive around with these printouts in hand, and compare the property you are contemplating buying to these. You need to make sure that these properties are very similar to the property you are looking at purchasing, re: land size, location, building structure e.g (Brick versus Fibro) garaging, room sizes and quantity of rooms, swimming pool, which way it faces North, South, East or West, when the property sold, and most of all when purchasing you need to look at it being a long term decision, that is at least five to seven years.
- Negotiating Tips: I always like to start low with my offers, usually offering around 15 to 20% below the market value. When putting in low offers the selling agent will usually indicate that the offer is too low, and that you might be in a position that you will offend the vendor and that they might not deal with you. Ignore this, by law any offer you present to a selling agent has to be delivered to the vendor, and I always say any offer, is better than no offer .The second offer should be a lot stronger, so make sure that when this is put forward that your terms and conditions are also known re: when you are wanting to move in and what inclusions you would like included with the property. The third offer is usually a smaller increment with a deadline date attached to it so that the negotiation doesn't drag out too long. If that offer is not accepted a small fourth offer should be made to try and secure the property. If a price can not be agreed upon I suggest you walk away and let things cool for a couple of days, and if it comes back to you well it was meant to be, and if it doesn't there will always be another one.
- Closing the sale: Before making any offers it is important to get your finance in place so that should you strike a deal you can perform immediately. It is also important that you get a pest and building inspection if you are buying a house, and a strata report should you be buying a unit. Whatever you do don't try and save a few dollars by not getting these, because in the long run it could cost you tens of thousands of dollars. Make sure that the sale contracts are reviewed by a reputable solicitor or conveyancer, and that if you have come to a successful negotiation with the vendor that you move quickly, because if you don't someone could come in with more money and gazump you.
Should all of this process become too daunting and time consuming, I suggest that you engage a Buyer's agent to help you with the search and negotiation of your new home or investment property.