Do buyer’s agents have better access to profitable investments?

Have you ever bought property, or considered it as an investment vehicle? How confident are you that you won’t make an expensive mistake?

Have you ever bought property, or considered it as an investment vehicle? How confident are you that you won’t make an expensive mistake?

For many potential buyers, the answer to this latter question is, “not very.” And that’s where a buyer’s agent can give you the benefit of their experience, alongside their professional networks, to help you find a property that will grow your wealth.

Buyer’s agents are trained to hunt the right deal

To paraphrase Warren Buffett; there are two rules for buying investment properties:

1. Buy well.

2. Don’t forget the first rule.

By clarifying your property investment goals and helping you understand the true market value of the properties you’re considering, your buyer's agent can get you off to the best start.

First, your buyer’s agent will find out how much money you have available to spend. Once you’ve agreed on your budget, your buyer’s agent will determine your investment property requirements: good yield (or income) or capital growth.

Once your buyer’s agent understands what is most important to your investment portfolio strategy, he or she can suggest suburbs and regions that show good yield, strong capital growth, or both.

Between you, you’ll determine if you’re in the market for a one-bedroom apartment, an apartment with more than one bedroom, a freestanding house or even a development property.

Buyer's agents have access to off-market properties

With a buyer’s agent, you aren’t restricted to publicly listed properties alone; you’ll have access to an excellent selection of houses and apartments for sale across all suburbs and regions, and even off-market property sales and those that are yet to hit the market.

A buyer’s agent has contacts in the industry, which means you will hear about off-market or silent sales, where the seller is after a quiet sale with no publicity.

Buyer’s agents find out about off-the-plan developments first

Sellers and developers understand that buyer’s agents have clients who are fully-financed and qualified property investors. For off-the-plan developments, for example, a developer generally approaches buyers’ agents before marketing the development to the general public.

Often, property developers are open to your buyer’s agent negotiating a better deal at the start of a new development project, because the developer’s bank will require some initial sales to help them secure their full loan commitment.

Buyer’s agents can save you from costly mistakes

Even if you believe that a buyer’s agent is an unnecessary expense in your investment property search, you need to consider the risks associated with purchasing a property.

1. Access to property research data

Your buyer’s agent works in the real estate market all day, every day. The research data to which they have access, as real estate industry professionals, far exceed any you can purchase.

2. Experience in mitigating risks

Remember that buying an investment property isn’t just about getting a lower price; you want to secure the best-value property and avoid expensive mistakes.

Your buyer’s agent can organise everything from building and pest inspections to searching public records for any lien on the property, alongside any development applications nearby that could affect local property values – and much more.

Case study: A consortium of friends decided to invest in a small commercial property in Sydney. On paper, it looked like a good investment with a good tenant and long rental agreement.

A few months after they’d purchased the property, the building was found to have concrete cancer. On top of their mortgage repayments, the friends had to pay over $100,000 for their share of the rectification.

A buyer’s agent would have ensured a professional building inspection was completed, which would have unearthed the concrete cancer, and the consortium would not have purchased this particular property.

Buyer’s agents are strong negotiators

Your buyer’s agent is your personal advocate. Unlike a real estate agent, whose primary client is the seller, a buyer’s advocate concentrates solely on what you want and need from the property transaction.

A good buyer’s agent can negotiate well with the seller or real estate agent on your behalf, which gives you the best start in the beginning, or adding to, your property portfolio.

As real estate professionals themselves, buyer’s agents are comfortable negotiating over price and settlement conditions, asking the hard questions and keeping a cool head throughout meetings and phone calls with the selling agent.

Your buyer’s agent can bid for you at auction – calmly and with purpose. And, in general, your buyer’s agent will set the price at which to stop bidding (the true value of the property). Emotion won’t get in the way of good judgement and compromise your property’s profitability.

Without a buyer’s agent, the odds are in favour of the seller rather than the buyer, who has an experienced, often highly trained negotiator on his or her side. It’s time to level the playing field.

Hopefully, we’ve persuaded you that a buyer’s agent does have much better access to more profitable investment properties than the average property investor. The benefits and upside to engaging a buyer’s agent, really does outweigh the cost.

How we help

Our buyer’s agents offer a complete property buying service, from search to negotiation and bidding at auction.

Get in touch to find out how we can tailor our services to suit your individual needs.