How to gain an advantage when buying prestige property - September 2023
September 18, 2023 / Written by Rich Harvey
I deal with a range of clients in my business. From those taking their first steps toward homeownership through to sophisticated investors with diverse property portfolios. In each interaction, my goal is to ensure we are adding value many multiples more than what we charge for our services.
With all that said, there is one buyer group in particular who can draw on our skills and enjoy a reasonably unique advantage from our participation as buyers’ advocates.
And that’s prestige property buyers.
Luxury real estate acquisition require something a little different compared to “everyday” purchases.
Here are six ways high-net-wealth buyers gain a distinct advantage by using an advocate.
When a buyer is a successful business leader, celebrity, sportsman, politician or any other high profile public figure, flying under the radar is nearly impossible in today’s world. Go to an open home and you are just one smart-phone photo away from being plastered all over social media.
Buyers at this tier want to stay on the down low. They are often a “brand” unto themselves and will prefer to keep their private matters as just that.
Utilising a buyers’ advocate insulates them from all that exposure. We have a duty to remain tight lipped on who we work for when requested.
The other benefit of anonymity is around asking price. I recall many years ago seeing a clip from the TV special about Victoria and David Beckham moving to America. In it, Victoria says of house hunting, “There’s a special price for Beckham.” …and she’s probably right.
If sellers are aware they’re getting interest from a high-profile individual with exceptionally deep pockets, the asking figure can be eye wateringly high. Anonymity can help stifle that kind of seller profiteering.
The buyer can appoint us under a limited power of attorney to represent them and we do not need to reveal the identity of our buyer to the agent or other parties until after the contract is signed – even then we remain tight lipped on who we represent to preserve confidentiality requirements.
Luxury homebuyers can draw on the unique specialist skillset of property advocates.
We operate daily in a real estate world where we understand the landscape and its participants. We know how to make appropriate offers on homes and can conduct ourselves without emotion during a discussion around price and terms.
An experienced property buyers can accurately assess market value and knows what elements to pay attention to during due diligence. We are aware of the fundamentals that add value at this price point.
Buyers who want to purchase a luxury home are leaders in their own field and they understand the value of having a specialist like us represent them in the real estate space.
If you’re of high net wealth, then your time is precious. You need to spend those important moments doing what counts, like the thing that got you to your financial position in the first place, or spending time with those you love and admire.
In short, wasted time equals lost earnings and missed opportunities.
The idea of burning minutes on open homes, trolling listings, talking to agents and so on just doesn’t make sense. Instead, devote yourself to your specialty, and leave us to our wheelhouse. We’ll take on the heavy lifting and filter through the possibilities leaving you free to pursue whatever you wish. In the end we’ll present a curated list of buying options that meet your brief.
This is perhaps one of the most crucial benefits of using a buyers’ advocate to handle your high-end property purchase.
At these prestige levels, sellers (just like buyers) want to keep things quiet. Their desire is to market their home to genuine purchasers only… buyers that have the financial means and are serious about doing a deal. To that end sellers will often sign on with a recognised and well-connected agent.
That’s where buyers’ advocates come in. We will know about properties that are available for purchase well before anyone sees them advertised publicly. We can reach out directly to our extensive agent network and enquire as to whether there are properties “coming up” that will meet the brief.
Somewhere between 50% to 70% of the properties we present to our clients are from off-market sources in the prestige market.
Similarly, agents know we aren’t time waters. We get regular calls from selling agents looking to give us early access to luxurious homes.
This behind-the-velvet-rope access to glorious abodes is your ace in the hole when working with a buyers’ advocate.
5. Negotiation skills
While many of our clients are master negotiators in their own field, there’s no denying that property advocates are specialists when it comes to getting into the nitty gritty of finalising a real estate deal.
We often know the selling agent were negotiating with. We’ll have dealt with them before. We are aware of their approach to negotiations and can turn the discussion to our client’s advantage.
I’ve saved one high-profile client almost $2m in a negotiation on a house in Mosman due to some smart negotiation moves.
I once represented Coca Cola to buy a beach front property for a summer drink campaign (where they gave away a $1m property) – but obviously I did not reveal the identity of my buyer during negotiations.
You can rest assured that the final arrangement will be the best possible outcome for you as the buyer.
6. Local knowledge
A substantial number of our prestige property buyers are located regionally, interstate or overseas. They can’t physically attend open homes or scheduled inspections.
In addition, they may not be across the nuances of the local market. There might be certain locations within a suburb deemed more desirable than others. Unless you know a place intimately, it can be tough to distinguish one street’s appeal from another’s.
Buyers’ advocates work daily in their locations. We understand the curiosities of our service areas. We are also aware of local comparable sales evidence, and how markets are tracking. This means you don’t need to be in situ to get the best possible result when you’re working with a buyers’ advocate.
Choosing a prestige property by drawing on the skills of a buyers’ advocate makes sense on so many fronts. Regardless of your own area of excellence, a buyers’ advocate can deliver superior results in the purchasing realm. They are your specialist professionals working in your interests to secure the best possible outcome for you.
To have one of our friendly Buyers' Advocate's contact you, click here to:
call us on 1300 655 615 today.