Why use a buyers agent for negotiations?
December 9, 2014 / Written by Rich Harvey
As we saw in the recent release from the Australian Prudential Regulation Authority, the property investment market in Australia is thriving. The proportion of residential property lending that is going to investors is now at 34 per cent continues to rise. It is also growing at a rate greater than that of owner-occupiers, which shows where the market heat really is.
This means a lot more people are targeting the same type of property you want to purchase for investment in Sydney. To get the edge on the competition, you should use the services of a buyers agent. In addition to the wealth of information they possess, a buyers agent can work the odds in your favour at the negotiating table. Here are three ways we can help to realise your real estate vision.
Your property, your interests
When you're at the negotiating table, you have to remember that the real estate agent selling the property is working for the vendor - not you. This means their priorities lie with extracting a good price for the seller from your wallet. However, buyers agents work the other way - exclusively for you, the purchaser.
The Commissioner for Fair Trading approves the licences for buyers agents, and must gauge them as fit for the job. So when you engage a certified buyers agent, you can be certain you have the appropriate qualifications.
They won't go over the legal limit
When you engage a buyers agent to negotiate on your behalf to buy a property in Sydney, you set a limit for how much you want to spend. New South Wales Fair Trading dictates that a buyers agent cannot exceed this limit when they are negotiating. So effectively, you're giving yourself a cut-off point and getting a professional to keep the home price below it.
This has the benefit of ensuring you don't get carried away and exceed your budget. All too often, people buy with their heart and not their head, and it ends up breaking the bank. A buyers agent can exceed your set limit, but only with your express written approval - cutting out any potential for making an emotional purchase.
They are on your side
It's great having a buyers' agent on your side when negotiating for a property. They can give you independent advice and information that is not tainted with the "sales speak" of typical selling agents.
By examining the most recent sales data, looking at the long term sales history and the likely potential for future growth, a buyers' agent will give you all the facts about the local real estate market. It can be easy to get swept up in the moment of an auction or a private treaty negotiation, but it's vital you keep a level head when paying for your next home or investment property.
The buyers agent will give you the confidence about what level to make the offer and how fast or slow to move when next negotiating. Don't just focus on their fees – there are seven other criteria you should consider when choosing a buyers agent. Click here to access a free report on how to select your buyers agent.