USE OF BUYER'S AGENTS BOOMING -
YOUR MORTGAGE MAGAZINE
April 2006
The boom in the number of time poor property investors
seeking the services of professional buyer's agents is tipped
to continue, according to a Perth buyer's agency.
Property Wizards' Director Trevor Dunkley said
investors had become increasingly savvy in recent years and
now realised employing expert help was just as critical when
buying property as when selling.
"Investors use buyer's agents because we
save them precious time by locating and researching the property
for them," he said.
"They also know that we can save them money
on the purchase price because we know the property market intimately,
and our service also helps ensure they're putting their money
in the best place to get the best return.
"We also have the expertise and access to
information that can prevent them selecting a property that
will underperform."
The role of a buyer's agent
Buyer's agents act exclusively for the buyer,
not the seller, while a real estate agent works exclusively
for the seller.
Buyer's agents use databases to search for the
best investment for clients, negotiate with the seller's agent
to ensure the buyer pays only what the property is worth and
carry out due diligence to make sure the buyer doesn't get any
nasty surprises like finding out about zoning or road changes
or unapproved renovations.
Property Wizards works with local, interstate
and overseas buyers seeking to buy property in the Perth metropolitan
area.
Fee Structure:
Property Wizards charges a $330 activation fee
to register client details and purchase requirements and to
begin the search.
A buying fee of 2 to 2.5% of the purchase price
(for the average property purchase) is enacted for clients requiring
a full Search and Acquire service, where Property Wizards finds,
evaluates and acquires the property on behalf of the client.
The full service normally includes:
-
Access to all Perth properties
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Suburb analysis and selection
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Eliminating inferior properties (most properties)
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Quality checks against strict criteria
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Researching superior properties
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Selection and recommendation
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A property report is prepared to aid clients
in making an informed decision
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Digital photos
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A property inspection
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Survey of similar properties that have sold
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Survey of similar properties on the market
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Price analysis - to ensure clients don't overpay
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Suburb and growth analysis
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Property Wizards 10 point guarantee
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Completion of all negotiations
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Preparing the offer
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Ensuring terms and conditions are favourable
to the buyer
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Co-ordinating the final offer and acceptance
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Arranging your building and pest inspections
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Liaising with the settlement agent, financial
broker, real estate agent and others as necessary
-
Co-ordinating and advising all parties of
clearance of purchase conditions
-
Conducting pre-settlement inspection
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Arranging property management if required
The full service can also give buyers access to
properties that are not yet available to the general public,
because the buyer's agent is constantly in the market and hears
about opportunities early.
SURVIVING BUYING AT AUCTION
Purchasing property at auction can be a blessing
or a nightmare, depending on how well prepared and disciplined
buyers are, according to property buyer's agent Trevor Dunkley.
Mr Dunkley said there were several advantages
of buying through the auction process if buyers had done their
homework.
"By far the best thing about buying at auction
is that the offers are on the table for all to see, so if you
stay cool, you only have to pay a little more than your competitors
to secure the deal," he said.
But Mr Dunkley warned this winning auction strategy
was only possible for investors who were fully prepared.
"The pressure pot feeling that auctions can
often create among buyers can mean people get caught up in the
hype and overpay if they're not experienced and disciplined,"
he said.
Another pitfall to watch for was that buying at
auction could be more costly.
"If you are truly interested in purchasing a property that
will be sold at auction, the contract will likely be unconditional,
so if you're serious about the home, you will have to pay for
building and pest inspections ahead of auction day - even though
you may not be the winning bidder," Mr Dunkley said.
He said investors were teaming up with buyer's
agents to buy at auction for several reasons.
"Unlike the homebuyer, we are not emotionally
attached to the property, so there is no risk of paying too
much for the property," he said.
"We help investors assess the right price
to pay ahead of auction day and thoroughly investigate the property
so that purchasers don't end up with a lemon.
'We also plan and agree on the auction bidding
strategy before it begins so that we pay only what the property
is worth.
"This sort of planned strategy ensures that
if any illegal dummy bidding is taking place, you are not unduly
affected by it."
Mr Dunkley says if a property is passed in at
auction, negotiations normally began with whoever was the highest
bidder, but he pointed out it was certainly possible to approach
the agent with an offer.
TOP TIPS FOR SURVIVING AUCTION BUYING
