What is a property buyers agent?
Someone who works on behalf of a property home buyer or investor to make a purchase. The idea is for a buyers agent to get the best deal on the buyers behalf. We work with you all the way through the purchase (holding your hand throughout). We research the market(s), provide detailed information to you (our client), which includes area research, infrastructure, cashflow, potential risks, property video, and property details, and also negotiate the best price and terms.
Why do I need a property buyers agent?
A property buyers agent is an experienced and skilled person that acts on your behalf. The local knowledge and years of relationship building will work to minimise your risk and set you up for a potential to have growth in value. Real Estate Agents work on behalf of the sellers, whereas buyers agents support and operate for the buyer - working in your corner.
What are the advantages of working with a property buyers agent?
A property buyers agent is able to work on multiple deals, where as real estate agents are often providing deals that they know that our clientele are interested in. We are able to establish price, issues with the property, benefits in quick time to enable a quick sale and get ahead of the competition. We will look to provide off-market deals, and deals that have been on-market for some time, and the sellers are more motivated to reduce their price or provide better contract terms.
What are property buyers agent fees?
At Search Party Property we charge $8,800 including GST. The initial engagement fee is $880, which would commence the process of a property purchase. At Unconditional Stage (normally, half way through the purchasing period) the remaining amount is payable. The majority of Buyers Agents are charging between $10,000-$15,000, and some will be a lot more (especially with Home Buying Agents, as the process and take a lot longer).
Where do you buy properties?
We are primarily Brisbane property buyers agents. This is our focus market currently. Most of the purchases are between the 15-35 km radius from the Brisbane CBD. The reason for focusing on this market is that we feel it provides low risk - as the cashflow is high, and there is greater potential for growth - with factors of affordability, infrastructure growth, population growth, jobs growth. As the Brisbane Property Market changes, along with Sydney Property Market, Melbourne Property Market, Adelaide Property Market, we will explore other areas of the country.
Do you buy properties for investors only?
We typically focus on property buyers that are looking for investment property to purchase. Our focus is to assist clients with the accumulation of wealth to open up their choices in life. The greater the wealth, the more opportunities to experience more in your life. For us, it is about the wealth creation that the property will provide, over the emotional aspects that home buyers look for.
How long does it take for you to buy a property?
Currently, the time frame can be very small, as we are looking/discussing deals with real estate agents daily. If a client focuses on buying something that fits their strategy, often we can secure a deal within 2 weeks. Some people are happy to wait a little longer to buy that slightly better deal that comes up every few months. At the moment, there are more deals, than there are clients as the financing in the market is a lot tougher. When buying a portfolio the finance side can be more important than the getting the property at $5-10K cheaper - as that $5-10k won’t be massively significant in 5-10 years time if the property has grown by $200k. It is about the long term thinking.
How do you choose the properties you buy?
We focus on what makes the property a good deal for our client. Every property is worth buying at the right price. With each deal we look at the potential to build a granny flat, to subdivide the land, have a high cashflow - or have multiple possibilities. Other factors come into play - property repairs and maintenances issues, closeness to transport and facilities, etc.
What are the steps involved when working with a property buyers agent?
1. Have an initial conversation about ideas, strategies, financials. Discuss with you how we work with clients before, during and after the purchase.
2. Ensure that you have assess loan options with a lender or Mortgage Broker.
3. Review deals we have worked on with clients, and if you wish to proceed, the initial engagement fee of $880 is paid to commence the buying process.
4. We discuss the type of property we will be looking for you, and provide current examples for you to review.
5. Present you with a property deal, which includes photos, cashflow sheet, flood mapping information, street maps showing shops and transport, a video through the property with commentary about potential ideas. We discuss the potential for a purchase. If you don’t choose this one, we will provide you with other possibilities.
6. If you choose to proceed, the contract is to be reviewed by a solicitor, then signed.
7. We will assist (if required) with referring other property team members - solicitor, pest and building inspector, property manager.
8. Review the Pest & Building report with you and negotiate on defects if required.
9. Send you payments and organising paper work through to settlement.
10. Discuss next steps in your Property journey.
When is a good time to buy an investment property?
It is always a good time to buy an investment property, there are always opportunities. Being on the ground each day you are often presented with great deals (in any market conditions). At some stages of the cycle you need to be more mindful and conservative than at the growth times.
Looking at multiple option strategies can reduce your risk. Also watch out for the market cycles. Be mindful of frenzied activity, as you don’t want to be buying in hot market conditions where buyers are out bidding each other. Be careful about those stagnant markets, that look like they have bottomed out but don’t show signs of growth drivers coming through.
There is also a good time to sell, if that fits into your investment strategy. Consider the market conditions in Sydney after July 2017, and where we saw 10% decline in property during 2018.
How much do I need to buy a property investment?
We are currently assisting clients with Brisbane properties as low as $165,000 (this will change over time), which enables clients to use very little of their own money.
Costs to start:
Deposit - this might be 5-20% of the purchase price (depending on lending arrangements)
Buyers Agent Fee - we charge $8,800
Pest & Build Inspection - $500-750
Legal Fees - around $2,000
Renovations, other reports, incidentals (may or may not be required)
When it comes to investing, think about the long term journey, and the learnings you will gain, over the short term costs. At the same time, ensure you have a cash buffer in place to prevent from having to sell the property due to financial stress.
What should I consider when working with a buyers agent?
- Their knowledge, skill and experience
- Are they practicing what they preach?
- Does the person resonate with who you are?
- Do they challenge your thoughts (be wary of a ‘Yes’ person)
- What is their communication style and does it work for you?
- The team of people around them
- Client Testimonials. Speak with their existing and previous clients.
- Look at what are they doing on a daily basis - talking, commenting, discussing property - on social media, through emails/newsletters.
