PERTH PROPERTY BOOM PROMPS BUYERS TO TURN TO EXPERTS

1st June 2006

Perth's continued property boom is causing increasing numbers of homebuyers and investors to turn to buyer's agents for help, according to Subiaco-based consultancy Property Wizards.

Director and buyer's agent Trevor Dunkley said with a massive shortage of stock in the current market, competition was unusually fierce among homebuyers and investors causing many purchasers to realise they needed help if they were to be successful in snapping up a property.

"Buyers are becoming more savvy and now know that having an expert on their side when buying as well as when selling property can be very advantageous," he said.

"For time-poor buyers and investors a booming market can be a difficult time to buy.

"With many properties selling before their first home open at the moment, waiting for the weekend to go out looking is not enough - having an agent who can spend all week searching for opportunities for you is critical.

"Some of our purchases are possible because we get early warning of a property coming onto the market or a sale falling over at the last minute."

Mr Dunkley said traditional methods of buying property were not always going to cut it in a booming market, so buyers had to stay flexible.

"What we're hearing from clients is that they've realised that at this stage of the property cycle they simply won't be able to enter the market without turning to someone who has inside knowledge of the market and has more contacts than they do," he said.

"As well, in this market being able to accurately gauge what sort of offer to put in is extremely important as with multiple bids being placed on properties you have to get it right first time or risk missing out.

"There is also the fact that a buyer's agent can more easily scour the entire market than an individual can."

Mr Dunkley said professionals were also using buyer's agents more frequently after realising their time was better spent on their area of expertise.

"Well-earning business and tradespeople know that it's smarter to spend their time earning money rather than chewing up precious hours and days searching for property when they can leave that to an expert," he said.

"They also realise 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.

"As well, we have the expertise and access to difficult-to-find information that can prevent them selecting a lemon.

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 and market contacts 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.