Not only have we seen listings transition from shop windows to online portals, but also the buyers agent have become an increasingly important element of the industry.
Although they have been a part of the profession for a significant amount of time in the Australia, it has only been in more recent times that they have begun to establish a claim in this country.
When compared to selling, a buyers agent sydney still makes up a very tiny portion of the industry, and just like with so many other things, it will take some time for the regulations to catch up with the changes that have been made.
Because of this, it is essential for you to do enough research before enlisting the assistance of another person to purchase real estate on your behalf. This is due to the fact that individuals may not always be who they claim to be.
Therefore, before you choose a buyers agent, here are five questions you should ask them.
1. Do you have a valid license?
Property professionals are often required to obtain a real estate license, despite the fact that the law governing real estate is different in each state and territory.
You are able to find out whether or not the individual you are working with has the necessary licenses by contacting the Office of Fair Trading in your area.
It is against the law in Australia to work on both sides of a transaction, thus a licensed buyers agent will only represent the buyer’s interests. This implies that the buyers agent will not be involved in the actual sale of the property.
Spruikers, on the other hand, often do not have any credentials at all and are in the business of just marketing subpar homes to purchasers who are not paying attention. Because of this, it is imperative that you ask this question.
2. How do you earn?
Buyers agencies who are professionals operate only for their clients, the purchasers, and so get payment from those clients.
They are completely autonomous in every way, and they are under a legal obligation to act in a manner that is in the best interest of their customer, who is the purchaser.
On the other hand, marketers and some individuals who term themselves “property coaches” do not have such an ethical viewpoint, and since they are often not licensed, they do not have to worry about any legal repercussions because they are subject to them.
Unfortunately, this might imply that they will charge a buyer a fee to locate them a house, but they will also take a sales commission return for suggesting a property to you, which will often be off-the-plan. This can be a conflict of interest for both parties.
If you ask them this question and they refuse to respond, there is obviously something wrong, isn’t there?
3. What organizations or groups do you belong to?
That brings us to the following question, which is a test of the level of professionalism shown by the individual with whom you are interacting.
A buyers agent and property investment advisors often are members of their respective industry groups because of their dedication to operating in an ethical manner within the real estate market.
They might be members of the Property Investment Professionals of Australia, like I am, or the Real Estate Buyers Association of Australia, in addition to the regional real estate institutes; all of these organizations require their members to abide by stringent codes of conduct, as do the local real estate institutes. They might also be members of the local real estate institutes.
Spruikers do not join to any groups since their tenure in the industry is brief; after making their money off of unsuspecting customers, they quickly vanish into the night.
4. Do you have experience investing in real estate?
The reason why buyers agencies are in the industry of real estate investing is because they have a deep-seated conviction that it may serve as a means of wealth creation not only for their customers but also for themselves.
You need to make it a point to inquire with your buyers agent sydney as to whether or not they are active investors in their own right; if they aren’t, how can you possibly be confident that they know what they’re doing?
In a similar vein, you should inquire as to whether or not they implement the investing plan that they are advising you to use in your own portfolio.
Whether they don’t, then you need to ask yourself if what they are recommending isn’t really just a way for them to make money – off of you. If they don’t, then you need to question if what they are suggesting is really just a way.
5. Do you work as part of a group?
Even if the buyer’s agency industry is expanding and welcoming new individuals on a regular basis, experience is still of the utmost significance.
Your buyers agent need to be a member of a group that has expertise in real estate investing throughout a range of market cycles, as well as a breadth and depth of knowledge, research, and experience, respectively.
It is not acceptable for them to be one-man bands that operate off of a mobile phone and a PO Box number.
They get access to a larger variety of industry connections, which often results in more off-market properties, someone to question their ideas, and improved prospects for continued training since they are part of a team.
An excellent buyers agent sydney will have access to a strong support staff, and their organization will be equipped with a research division.
6. How long have they been a part of the competition?
It’s hard to believe, but the housing market has seen three downturns in the last ten years…
The economic slump that began in 2009 was brought on by a spike in interest rates that reached 9 percent.
The rise in interest rates in 2012 was another factor that contributed to the downturn; they reached their highest point at 8%.
Then there is the present recession that is being caused by a tightening of credit.
However, a significant number of today’s buyers’ brokers have never been through a recession.
Consider the recent spike in property prices in Sydney; if the only market cycle that your prospective real estate buyers agent has seen is the most recent one, then it’s possible that their success was due to the fact that a rising tide lifts all ships.
On the other hand, if they can demonstrate that they were successful in making investments despite weak market circumstances, then it is obvious that they know what they are doing.
Spruikers will only be able to tell you about recent instances, some of which may have showed growth due of an increase in the market, but they won’t be able to show you anything more complicated than that.
When it comes down to it…
In spite of the fact that savvy property investors now have access to a greater number of specialists than ever before, the expansion of the industry has unfortunately attracted a small number of shady businesspeople.
The most astute investors are aware of who is who in the real estate zoo and are able to identify a spruiker from a mile away, despite the fact that some individuals are still fooled by promises that are just too good to be true.