I introduced the concept of Buyer's Agents to Sydney 20 years ago back in 1997 because I saw that in a real estate transaction, the buyers' interests were not being represented, and that they needed to be better protected from misinformation, overpricing and emotional impulse buying. I am happy to say that since this time, Buyer's Agency has become more commonplace in Australia, but as the number of Buyer's Agents grow, buyers are now faced with the age old adage – who do I choose to represent me? A good Buyer's Agent will save you more than just money by using their skills & expertise to advise you what to purchase and helping you secure it for the lowest possible price, but more importantly, advising you what not to purchase – avoiding very costly mistakes. And boy have I heard a lot of these stories over the past 20 years.
So how do you make sure your Buyer's Agent isn't an amateur? Below is a checklist, aka Buyers Agent Beware Checklist, that I have put together to help you identify if you are engaging a genuine industry professional.
IMPORTANT
If you are unable to answer YES to the following questions after researching your Buyer's Agent, I strongly recommend you think twice about engaging their services. Choosing the wrong Buyer's Agent can cost you valuable time and a lot of money.
Even if the answer to these questions is YES, it is most important that the proposed Buyer's Agent provides you with written evidence of their claims along with client testimonials which clearly indicate a high level of negotiation skills and successful outcomes.
1. Does the Buyer's Agent have the required licenses from The Office of Fair Trading, and also hold at least $2m in Professional Indemnity Insurance?
Should something go wrong with your property purchase you will need to make sure that your Buyer's Agent has all licenses and insurances up to date, otherwise you will have no recourse.
2. Is the Buyer's Agent a fully licensed real estate agent with no less than five years' experience and have they been a Buyer's Agent for at least 3 years?
If the Buyer's Agent you are considering engaging has not been a real estate agent in the past for at least five years, they may not be adequately experienced to negotiate the lowest possible price for the purchase of your property. Be wary of anyone who does not hold a full real estate license and whose only qualifications are the result of a 10-day course, and remember that a Buyer's Agent who promises you low fees is also likely to deliver poor service and a disappointing result.
3. Are they a full member of the Real Estate Institute of NSW?
This will provide some reassurance that they are operating to a professional industry standard.
4. Does your Buyer's Agent do everything themselves?
Some Buyer's Agents will say 'yes' to everything. They may say they have an office close to where you want to purchase, when in fact their only address is a post office box because they work from home and nowhere near the intended purchase location. A sole operator who does everything themselves cannot possibly offer a high standard of service when searching and negotiating a property on your behalf. Many are trying to run their business single-handedly which ends up adding to the time it takes to deliver your dream home or investment. You need a dedicated team of professionals focused entirely on the purchase of your property.
5. Does your Buyer's Agent specialise in the location and price range you are purchasing in?
If the Buyer's Agent lacks a solid track record of buying in the area, you are strongly urged not to engage their services. They should be forthcoming with evidence of at least 10 recent purchases in the area backed by written and/or verbal testimonials from former clients.
6. Does the Buyer's Agent purchase for expatriates and foreign investors?
There are many confidentialities and 'tricks of the trade' when it comes to purchasing for international clients to help them avoid paying above market value. You should ask the Buyer's Agent for a list of their 20 most recent overseas clients backed by written and/or verbal testimonials. They should also be able to refer you to a reputable property manager to look after your investment while you are abroad.
7. Do they specialise in property investment?
When purchasing property for investment purposes only, certain experience and strategies need to be employed by a Buyer's Agent to ensure capital gain is maximised in the future. Once again, ask your proposed Buyer's Agent what experience they have in purchasing investment property and for written and/or verbal testimonials from their last 10 clients.
8. Can your Buyer's Agent refer you to reputable property industry professionals if you decide to sell in the future?
The Buyer's Agent you are considering engaging should have a database of property managers, solicitors, conveyancers, architects, building/pest inspectors, tax experts, accountants, builders, property stylists, interior designers and real estate agents you can contact should you consider selling your property.
9. Does your Buyer's Agent have personal dealings with real estate agents throughout the industry?
A large number of properties available for purchase are not advertised to the general public. These are what we call 'Silent Sales'/'Off Market Properties'. It is imperative that your proposed Buyer's Agent has developed long term relationships with all the real estate agencies so that when these 'Silent Sales'/'Off Market Properties' are available, your Buyer's Agent is immediately informed and can therefore inform you.
Buying property is not something most people are involved in on a regular basis, so it's important you get an expert on your side from the start. To speak confidentially about your situation and how we can assist, contact me today on 0419 200 018 or (+ 612) 9960 1066 or enquire today to obtain a fixed price quote or obligation-free property consultation.