MPA RESPONSE
1st August 2006
Property Wizards Buyer's Agency is based in Subiaco,
Western Australia. We have seven Buying Specialists and have
been established for more than two years.
We are one of only a handful of licensed specialist
property buyer's agents in Perth and we have more than 15 years
experience in the real estate market.
The role of a buyer's agent
Buyer's agents act exclusively for the buyer,
while a real estate agent works exclusively for the seller to
get the highest possible price.
Buyer's agents use databases to search for the
best investment for clients, negotiate 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.
Trends in the use of buyer's agents
In recent years, the popularity of professional
buyer's agents has soared in Perth and across the country.
Property Wizards' Managing Director Liz Sterzel
said more and more investors were becoming increasingly savvy
and demanding the services of professional buyer's agents to
work on their behalf.
"Buyers now understand that it's important
to have expert help when they are buying property, as well as
when they are selling, to ensure they get the best deal,"
she said.
"As well, investors are realising buyer's
agents save them precious time and money. While they spend their
time where they can earn money - in their profession - we are
locating the ideal property for them.
"There is also the benefit that we can save
buyers money on the purchase price because we know the property
market intimately and so stop them from overpaying.
"We also have the expertise and access to
information that can prevent them selecting a property that
will under perform."
The mortgage broker-buying agent relationship
Ms Sterzel said mortgage brokers and buyer's agents
could form alliances to benefit both of them, as well as the
investor.
"Clients approaching mortgage brokers to
discuss borrowing capacity or loan pre-approvals are more often
than not shopping around for the best deal," she said.
"We find one key benefit for the mortgage
broker in referring clients to a buyer's agent is that it results
in business for the referring broker. The client doesn't get
enticed away as we work hand-in-hand with them to make their
client's purchase very easy."
Ms Sterzel said if the client permitted a mortgage
broker to pass on their details to a buyer's agent it was also
more likely that they would follow through with their plan to
buy a property.
"Because at the end of the day mortgage brokers
only get paid if the client actually buys a home and gets the
loan through them, directing them to a buyer's agent is smart
because we make the process of investing painless, so that the
client is more likely to follow through and make the purchase,"
she said.
"So, not only is the broker more likely to
gain the business from the client, but they are also able to
secure a referral fee from us - of up to 10% of the buying fee
- so they can win twice this way."
Ms Sterzel said the benefit for the buyer's agent
was in getting quality leads.
"Most brokers only refer clients who are
genuinely ready to buy, so from our perspective, to know we
are dealing with serious investors is a big bonus," she
said.
"It's also more likely that the type of buyer
who will use a mortgage broker is more suited to using buyer's
agents - that is, they are often professionals who are very
busy and want to make their property purchase using the advice
of experts."
Ms Sterzel said the trend was for brokers to refer
to agents, rather than the other way around.
"By the time investors come to us, they have
usually decided on, or are very close to choosing their mortgage
broker or bank, so that's why forming alliances early on is
the best strategy," she said.
"We often have brokers approaching us by
phone or email to find out more about what we do and we're always
happy to spend the time with them."
