Buying an investment property can be a rather daunting task especially for new and inexperienced buyers. Knowing the market conditions, prices and which areas to buy in isn't always easy especially if investing in property isn't your full time job. This is where the services of a property Buyers Agent can become invaluable in ensuring investors get it right. So what exactly does a property buyers agent do and how can they help?
A Property Buyer's Agent is essentially a real estate agent who works solely for the buyer and not the seller or both as is often the case. Buyers agents are experts in finding properties available for sale and often have access to ‘off market’ properties. They are also experienced investors and have the capability and know how to analyze potential deals.
Outside of sourcing property Buyer's Agents are great at getting buyers to understand their investment goals and reasons for wanting to buy in the first place. A good Buyer's Agent will take time to understand his/her client and guide them through the entire buying process from start to finish. In particular, an experienced buyer’s agent will protect their client from being misled by the selling agents who unfortunately sometimes don't disclose the full truth and are often driven by just getting the sale done.
How the pick the right property Buyer's Agent?
The first step towards finding a suitable buyer’s agent is to realize that not all buyers agents are the same. Some Buyers's Agents are generalists, while others may be more focused on purely investors or particular areas. The agent you choose should naturally be a specialist in the type of property purchase you are looking to make.
Outside of expertise it is wise to look for somebody who is fully licensed has at least 5 years experience or comes highly recommended. Another point to consider before appointing your buyers agent is their fee structure. Do they charge a set fee or a percentage of the property purchase price. This is important to know because if they charge a percentage of the purchase price they may not be all that incentivized to not negotiate the lowest possible price.
Potential downsides of Buyer's Agents
There are a number of important things to watch out for when acquiring the services of a property Buyer’s Agent.
A large number of Buyer's Agents are actually former selling agents which unfortunately does not guarantee they have investment expertise. The ability to source and evaluate an investment opportunity requires a whole different skill set and approach to one needed to successfully sell a property.
Some other type of Buyer's Agents to watch out for are the following:
● Those who are rather ‘salesy’ in their property recommendations and who's main aim is to turn over clients quickly.
● Those who behave more like a selling agent than a buyer’s agent. They don't always have the buyers best interest as the number one priority.
● A Buyer's Agency which is what you would consider a part time buyer’s agency because they also act as a sellers agency. These type of agency will often try and sell their clients property they already have on their books regardless of whether that property is the best option for the client.
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