Do Buyers Agents Actually Add Any Value?

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  Traveller107 on 30/04/2023 - 16:59

  +1

  I know a few people who've sold their properties where the best offer was made through buyers agents. Two offers involved no negotiations and paid way over the other offers and the third one just asked what would buy it and the pffer they need to beat and offered that.
  This was between 2015 and 2019. Needless to say i dont think very highly of them but there might be better ones out there.

• 

  Porker on 30/04/2023 - 17:54

  +3

  Indeed people can do their own research and dealings when buying a house. People can also go to the shops to buy their own food, but many choose food delivery services for convenience.

  Buyers Agents in my mind are simply a convenience item.

• 

  deme on 30/04/2023 - 18:00

  -5

  invest

  lol

  • 

    p1 ama on 30/04/2023 - 22:02

    +3

    Do you actually think you are funny?

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  Malik Nasser on 30/04/2023 - 18:09

  +1

  My cousin has used them to buy properties in areas outside of his local area.
  They know more about the area, and which areas to avoid, and you also do not need to travel around.
  If you find a good one, then they definitely pay for themselves (I guess that is true for most professional services).

  • 

    AngoraFish on 01/05/2023 - 01:15

    How do you know they've actually applied their knowledge to your particular requirements though, instead of simply making a convenient bid, sold you a line and taken the commission? They get paid either way, after all.

    It's a classic example of a situation where if you don't know what you need, you have no way to determine whether you got it.

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  JIMB0 on 30/04/2023 - 18:33

  The answer to this is much the same as you'll get regarding mortgage brokers. Some are good, some are bad, some will find it a benefit while others are better off doing it themselves.

  • 

    bloom on 30/04/2023 - 18:48

    Much like a hooker

    • 

      JIMB0 on 30/04/2023 - 21:36

      +1

      A true ozbargainer would be doing everything in house rather than paying to outsource.

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  87percent on 30/04/2023 - 20:28

  100% yes

  When I used mine, they organised private inspections, provided data on properties, did the bidding at auction for us

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  conan2000 on 30/04/2023 - 21:04

  +3

  For investment purposes I'd always use one. I hate looking for property, it's extremely time consuming, and especially for investment where it's not something you will ever live in, it doesn't have the excitement value.

  We live in Melbourne and used one to find a property in Brisbane for us, wouldn't have been do-able without and it took several months to locate one that ticked all our boxes, so definitely worth it from my perspective. They aren't cheap however, so it's all relative to what you're willing to spend and how much you value your own time. It's not quite as simple as just googling a property and hitting a buy now button!

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  Pcosmic on 30/04/2023 - 22:01

  What and how do they charge?

  • 

    JIMB0 on 01/05/2023 - 04:25

    They get a kickback from the selling agent. Plus a fee from the buyer.

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  punkindrublic on 01/05/2023 - 15:17

  I purchased my current place through a buyer's advocate, and was extremely happy with the service and experience.

  At the time I lived in Sydney, but wanted to buy something in Melbourne that I could eventually move into, and be a good investment property before I relocated. The original plan was to fly down on weekends for inspections and auctions, but quickly realised how expensive and time-consuming it is to fly interstate only to find the property isn't any good. Or worse, is perfect, but then at auction you're outbidded in the first 5 seconds!

  I emailed a few advocates I found on property forums and web searches, but the one I ended hired was refreshingly honest about how she worked, what areas and properties would be good for capital growth, etc. Her process was essentially to look at listings, shortlist ones that met my budget and needs (e.g. under $750K, 3BR, in certain suburbs, or at least not 90km from the CBD) and go to inspections on my behalf. She'd send me some detailed walkthrough videos on Whatsapp with her commentary on whether the kitchen was in good order, the presence/lack of termite damage, whether the listed price was reasonable or not (or could be negotiated down), etc. If I was interested in the property then she'd organise pest/building inspections, have a shot at negotiating a better purchase price, or attend and bid at the auction on my behalf.

  If I hadn't agreed to buy a property after a certain number of weeks/inspections then I would have had to pay additional fees for her to keep searching. In my case, the search took close to 6 months because COVID locked down most of the country right after the advocate started work. But to her credit, she waived any additional fees and stuck at it (with full masks, gloves and protective gear during the inspections), eventually finding my current property. She had a shot at offering a lowball price for the property, which was refused, but she managed to persuade the seller to agree to a price slightly below asking, which was a nice bonus.

  While a lot of this stuff can be done without an advocate, it takes time and effort, and if you're new to buying property there's a risk you'll miss something obvious that causes pain in the long run (forgetting to do pest inspections is a big one, as is not getting a lawyer/conveyancer to read the contract before signing). My advocate's fee was about $10K in the end, but it was worth it to delegate all the legwork to someone with a lot of experience in the property market.

  • 

    Pcosmic on 01/05/2023 - 18:32

    What was the property price you bought? Curious as to what percentage this costed you.

    • 

      punkindrublic on 01/05/2023 - 18:39

      Bought my place for $700K and paid $10K to the advocate