1. Access to off-market properties
Unless owners have a compelling reason to sell, they will typically hold off on listing their property for sale until the market conditions are stronger and they can achieve a higher price. This creates a smaller pool of properties for buyers to choose from. Buyers need to work harder to find properties. This involves building relationships with selling agents which not everyone has the time for.
Buyers’ agents build relationships with selling agents over a long period of time. Buyers can expect a competitive advantage by leveraging these relationships when they engage a buyer’s agent. For buyers going it alone, they may be speaking to the agent for the first or second time. It is going to take a lot more effort and time to develop the relationship to a level that the selling agent remembers the new buyer, let alone understands their requirements.
Top of mind awareness with selling agents, plus knowing how to source off-market properties (e.g. knowledge of streets and apartment blocks and database) helps buyers access a wider variety of properties before anyone else.
2. Pricing properties to avoid paying too much
In a softer market, buyers fear they will pay too much for a property. Part of the value in working with a buyer’s agent is their ability to negotiate, particularly when market conditions are more fragile. This is because buyers’ agents understand how to assess price first and foremost. The assessment of price strengthens the negotiating power with the other side whilst the buyer will have the confidence of knowing a reasonable price to pay and when it is time to call it quits and move on.
Assessing price is a challenging task for any buyer to undertake because it requires knowledge of more than just the property itself but also comparable sales and market conditions. It requires an understanding of how to assess a comparable sale which takes time to develop.
For example, comparable sales reports may not pick up key details of properties such as the internal condition or the state of neighboring lots which may significantly impact on the price of the property. Other factors the reports will not pick up include the quality of natural light, the floor plan and layout. Furthermore, comparable sales reports will not pick up the story of a sale. For example, a property may have sold for a price which looks like a bargain on paper and this was because the vendors were highly motivated and pressured to sell. This is what is called an “out of line sale”. There is no substitute for understanding and experiencing the market firsthand.
The assessment of price is then coupled with the buyer’s agent’s ability to interpret the selling agent’s marketing campaign, language and actions which may reveal clues about the flexibility of the negotiations based upon the circumstances of the vendors and any other buyers. Buyers’ agents know how to frame offers and present them to selling agents in the best manner and in the most expedient timeframes in order to put the buyer in the best position to secure the property at the right price and with the best terms.
3. Buyer’s agents make the whole process of buying more efficient
Buyers’ agents are experienced in navigating the steps of purchasing the right property from finding the right one to conducting the due diligence and negotiating the best price or bidding at auction. The steps are not always straightforward, and it is only with time and experience that buyers’ agents are best placed to spot an opportunity and potential hurdles along the way.
For example, buyers may face hurdles during the offer process such as push-back from the vendor or the selling agent in relation to an offer but without clarity as to whether the offer is going to be accepted or not. This can be extremely frustrating for any buyer. Buyers’ agents help their clients prepare for various scenarios, anticipating potential hurdles and advising on how best to orchestrate the offer and negotiations and how to close the deal.
Buyers’ agents prepare their client’s buying team and coordinate all moving parts of the purchase including involvement of the purchaser’s solicitor and their bank or mortgage broker for example. Meticulous planning and preparation enable the buyer to act with confidence, making the process more efficient and in turn, saving time, stress and money!
Experienced Buyer’s Agent, Nick Viner will make sure you are not at risk of overpaying by assisting you in purchasing a property that suits your budget and requirements. Call Nick on 0405 134 645.
Merry Christmas and a Happy New Year from everyone at Buyer’s Domain!
Our Office Christmas Closure Dates: 23 December, 2022 – 16 January, 2023.