People Looking For a Buyer’s Agent Should Know The Answers To These Questions
As Buyer’s Agents increase in popularity, so does the confusion and “misinformation” about their role within the property buying process. Some people aren’t clear on the role of Buyer’s Agents, so they think they’re unnecessary during property purchases.
But this couldn’t be further from the truth.
Every day I receive questions about Buyer’s Agents and asking me to demystify the role they have. So I thought I’d take a moment to give you my frank and honest answers to a few of the common questions I get.
1. Why would I pay you to find a property on the market, i.e. online, on realestate.com.au, and domain.com.au? I want only off-market properties from you.
This question is an interesting one. The fact that you want “off-market” properties makes me think they could be a “problem client.”
Now that may sound harsh, but this is why I say that when people want off-market properties, it usually means they can’t execute and buy a property that is on the market.
What I find is, the properties available online aren’t the ‘actual’ problem – the problem is that the person cannot buy them. Which is why they end up turning to Buyer’s Agents to help them.
And I’m sorry to be the bearer of bad news. The off-market property is not the solution they are looking for. They need help with executing what’s already online.
2. Real Estate Agents are free for people buying property – what makes you different from a real estate agent?
Every time I get asked this question… I have to pause and bite my tongue for a few seconds. I then inhale and then say as calmly as I can… “Are you aware that Real Estate Agents work for the vendor, in fact, they are legally obligated to get the best price for their vendor, not you, or any buyer.”
Basically, Real Estate Agents are experts at getting buyers to pay more money for the property they’re buying. They are highly trained to do this and are very skilled at it. They do it day in and day out… and they can do it with their eyes closed.
3. I can do this myself, why would I pay you 2%+gst for your commission?
Seriously… if people could actually do this themselves, then why we even having this conversation?
When you sell your home, you would willingly pay a Real Estate Agent 2% to help you sell your home.
So why are people “unwilling” to pay a Buyer’s Agent like me 2% to help them buy a home? Especially when I can get their time back, their life back, and finally buy the right property at the right price for them… with little to no effort on their behalf.
Usually, I answer that question with a question of my own… “How much is your time really worth?”
4. You are close to double the price, compared to some of your competition.
The simple answer to this question is, “You get what you pay for.” But let’s go a little deeper on this one, shall we?
When you seek out the best barrister, surgeon, or any highly paid professional who “is the best” at what he/she does… Do you automatically look for the cheapest? And do you automatically ask them to discount their price?
These professionals have not set up their business as a charity. They have acquired the experience and expertise to be the best at what they do… and they deserve to be remunerated as such. That’s why the best of the best is usually, if not always the most expensive.
It’s the same for Buyer’s Agents. You see, the best Buyer’s Agents are the ones who have the best negotiation skills.
In fact, you should be dubious of a Buyer’s Agent who doesn’t charge a decent fee for what they do. It makes me wonder if they ever get the best price for their clients. (I think it’s a great indicator of the result you’ll get from them.)
Also, the best price may be important when you buy a commodity like a TV or a car… but like in the case of a surgeon or a barrister, sometimes a reasonable investment is required to get the result you truly want.
So just remember that the cheapest Buyers Agent may save you money in the short term… but could end up being a very expensive mistake, emotionally and financially. Perhaps the question you need to ask is, why are the other people charging less, and what aren’t they doing for you?
5. How long can the process take?
Oh, I wish I could accurately predict this… but unfortunately, this part of the process is not predictable at all.
However, what I will say is this… it’s not uncommon that the 1st property I present to my clients is pretty close to perfect, or in some cases, it ends up being the one we buy.
That’s because, when you look at property 7 days a week, and you buy property all day every day, you become highly skilled at executing on people’s ideal properties. Or what I like to call their “vision properties.”
So usually, it can take around 34 days or less on average to buy the perfect property for my client.
6. What’s a key point of difference for a Buyers Agent, compared to a buyer, without representation?
Firstly, it depends on who the Buyer’s Agent is. And the reason I say that is, there are 3 major points of differences I see in Buyers Agents:
- Good access to stock: When you’re searching for stock 24/7 and on the phone, all day hunting for it… there’s a high probability that you’re going to get access to much more than the average Buyer’s Agent.
- Relationships with real estate agents: These relationships are so critical. And they’re developed from doing “many deals” with “many different real estate agents.”
Because of the nature of what we do, we build a business relationship, unlike a “typical buyer” who is often seen as an opportunity to get more money out of. The price we pay and the price you pay is like comparing a lemon and an orange… they’re completely different. We’re also privy to property that you wouldn’t ever see.
This all comes down to understanding their process, building trust, learning how they negotiate, plus many more tactics we have up our sleeve to jam the price and terms, as low as possible.
- Negotiation: Let me be clear here if you are not negotiating on a property every week of the year, then, you are like a person who wants to lose weight and goes to the gym twice a year and has terrible eating habits, and STILL thinks they’re fit. My point is, don’t fool yourself… this is a highly developed skill that you need to work on each day, each week to maintain “match fitness!”
Hopefully, my answers help to clear up any confusion about Buyer’s Agents. The fact is, all Buyer’s Agents are not created equal… you need to do your due diligence.
But one thing is for sure, Buyer’s Agents are on the buyer’s side of any property deal or negotiation. And the good news is, Buyer’s Agents are here to make your life easier.