Buyer’s agents can significantly facilitate the purchase or sale of a house for a property owner. But there are also some things that they don’t have the right to do. So, what buyer’s agents can and what they can’t?
Once a buyer’s agent is familiar with your purchasing criteria, they initiate thorough research to identify properties aligning with your preferences. This entails delving into historical databases and predictive reports, offering real-time analyses of suburbs and local sales data. For investment-focused properties, their research encompasses essential factors such as employment opportunities, population trends, and infrastructure growth.
2. Investment Guidance
In cases where you’re a new investor seeking direction, a buyer’s agent can assist in formulating a tailored portfolio strategy.
3. Property Inspections
A buyer’s agent streamlines the time-consuming process of inspecting numerous properties. They provide you with a curated list of pre-inspected properties that match your budget, preferred location, and specific requirements.
4. Access to Unlisted Properties
Buyer’s agents possess access to private and off-market listings, granting you the opportunity to explore properties not publicly advertised for sale.
5. Property Evaluation
Once you’ve chosen a property of interest, a buyer’s agent assesses its market value and furnishes objective advice based on their local market expertise.
Leveraging their negotiation skills and comprehension of prevailing market values, buyer’s agents can enhance your prospects of securing a favorable deal in private sales or post-auction scenarios. They adeptly recognize situations where favorable pricing is possible, such as instances where a seller is motivated for a swift transaction.
7. Auction Bidding
Should auction bidding be a source of anxiety, a buyer’s agent can execute bids on your behalf. They also have the capacity to negotiate prior to the auction, aiding in securing the property before the public bidding process. Their impartial perspective helps maintain a level-headed approach, preventing overpayment driven by emotional attachment.
If managing tasks like liaising with solicitors, strata managers, building inspectors, property managers, and valuers seem overwhelming, a buyer’s agent can assume responsibility for these aspects, ensuring a smooth settlement process on your behalf.
Is it Possible for a Buyers’ Agent to Contact the Seller Directly?
The role of a Buyers’ Agent involves establishing communication with the party responsible for advertising the property for sale, typically the Real Estate Agent. All inquiries, correspondence, and negotiation processes are channeled through the seller’s designated Selling Agent by the Buyers’ Agent.
However, an exception arises if the property owner is personally handling the advertising and sale without enlisting a licensed Real Estate Agent.
Is it Permissible for a Buyers’ Agent to Attend an Appraisal or Valuation?
The majority of Buyers’ Agents will provide an internal market appraisal for your prospective property purchase. This step ensures that you gain a comprehensive understanding of the property’s genuine market value, distinct from solely relying on the vendor’s price expectations.
While a Buyers’ Agent has the option to be present during a valuation (typically conducted by the bank for financing purposes), such attendance is not obligatory. This is because the valuer conducts an impartial and independent assessment of the property, over which the Buyers’ Agent exerts no command or influence.
Can a Seller’s Agent Serve as a Buyers’ Agent?
No, this situation would create a conflict of interest since the primary duty of a Selling Agent is to secure the highest achievable price for their client (the seller). Conversely, a Buyers’ Agent is committed to attaining the lowest feasible price for their client (the buyer). Both these objectives cannot be simultaneously achieved within the same transaction.
Buyers agents CANNOT guarantee future rental income
Ensuring an accurate projection of future rental returns for off-the-plan properties remains exceedingly challenging due to the dependency on supply and demand. In cases of substantial developments, a sudden oversupply of available units could emerge, intensifying market competition and potentially leading to significantly lower rental income than anticipated. This scenario further compounds the financial strain.
In general, opting for a well-established property offers greater security. In such cases, confirming the property’s value is more straightforward, and there’s a higher level of confidence in projected rental returns.
Buyers agents CANNOT assure the final property value
Off-the-plan properties are typically sold based on forecasted future values, leaving them vulnerable to unforeseen events like economic downturns that can profoundly impact the eventual worth. Investors might find themselves obligated to settle on properties that do not align with their purchase costs, resulting in immediate negative equity.
Should you require a loan to purchase the property and its value subsequently falls below the agreed-upon price, securing sufficient funds to finalize the purchase might become problematic. This is because banks evaluate the loan amount based on the property’s value at the time of the loan application, rather than the initial purchase price.