What advantage does a buyers agent have in a HOT market?
It’s an interesting question that we’ve been asked recently here at House Search, especially by investors who have purchased before, and not necessarily in a rising market. After all, buying property appears so much simpler when there’s a glut of stock on the market, selling agents are inundating you with callbacks and vendors are steadily dropping prices to attract buyers. Across many suburbs and price brackets of Sydney, however, this is not the case right now, as key drivers including affordability,low interest rates, improved sentiment, low vacancy rates, decreased listings and higher buyer demand all contribute to a buoyant market for sellers.
We’ve heard many stories especially this year of frustration and gazumping from fed-up buyers, and so they ask the question: How you can you help me to get an advantage in this market? In a nutshell, we believe it comes down to a no. of key reasons:
1. WE HAVE THE TIME: As buyers agents, it’s our job to scour the market, make calls to agents, nip out for a drive or inspection to a likely property (or 10!), research recent sales/trends on RPData/APM and canvass particular streets for private sales. All of this takes time and energy. So often we talk to buyers who only inspect properties weekly, on a Saturday- and this is often after a 1-2 hr online search on a Friday to see what’s left for sale and open for inspection. Needless to say, in a hot market, this is NOT the best approach to buying property. You need to be on the ball, ready to roll from Monday! Also it’s important to remember that only a portion of listings are actually open on weekends. Most are actually additionally available or exclusively by appointment only. In a hot market, it is sometimes more difficult to obtain access during the week however we circumvent this by ensuring we conduct as much research as possible on a property prior to it’s first inspection with you. You benefit by getting a foot in the door first, on most occasions, and in a hot market, this really counts.
2. YOU BENEFIT FROM OUR CONTACTS: Don’t under-estimate the relationships built up over time with selling agents (most of whom prefer dealing with us, as we only bring qualified and committed buyers to the table) good solicitors/conveyancers, council contacts, inspectors, lenders/brokers, property managers,quantity surveyors and tradesmen. Dealing with our contacts on a regular basis ensures we are on top of the market and know what is coming up, what is going down, and, most importantly, whether or not it’s a viable option for our buyers. This includes silent listings as well as properties that haven’t hit the market. We are also in an excellent position to see how selling agents work for their vendors, and consequently are able to assist our clients with recommendations when they need to sell.
3. WE HAVE THE EXPERTISE: Time spent in the field obviously is a huge factor, as experience counts in the game of real estate. Make no mistake, we’ve encountered just about every scenario there is with sales contracts, offer techniques and auction strategies. The combined experience between our buyers agents team of almost 50 years provides peace of mind to our clients, that we have had the experience to back us up, when the going gets tough. Not only in residential buying, but also sales, property management, business management and consumer advisory- our skills are diverse and assist our buyers in ensuring they have access to the right data and people, and as quickly and efficiently as possible. Being able to act quickly and armed with the right information makes a huge difference in a rapidly moving market.
4. WE HAVE THE TOOLS: Having access to agent-only databases including RPData and APM ensures that we are able to research the most recent sales data, owner information, sales and marketing histories as well as nearby developments that may affect your property purchase. Being able to provide written appraisals is part of our service and provides peace of mind for our buyers that they know what a property is worth in the current marketplace. It also ensures they are guided by us and don’t overpay, especially when it is a heated market. We are as much about showing you why particular properties are “lemons” as we are about shortlisting the “pick of the bunch” properties. Of course another tool of paramount importance is our local knowledge of the areas we work in- it’s impossible for one BA to know the entire city of Sydney thoroughly, hence our decision to stick to those areas we do know. Buyers benefit from this, as we know the ins and outs of suburbs, streets and reasons why some parts are more/less sought after than others.
5. WE TAKE THE EMOTION OUT OF IT: Some may disagree and claim that they don’t get emotional, but in our years of experience we believe that most of our buyers become attached at one point- even investors can become fixated on a particular property and lose heart when they miss out. Unsurprising when you consider the amount of time and energy that property acquisitions can entail! Using a BA, however, ensures that you assess properties more objectively (with our “rose-coloured glasses removed” assistance) and are able to move on more easily when the time comes if you do miss out. As the masters of being rejected, it is our belief that “There is always another property”, and we can guide you through this process during the search. Though every buyer is different, you benefit from a second (or third) set of fresh eyes when it comes to assessing property, whether or not it be for home or investing purposes. Our ultimate goal is for you to be happy with your purchase, and this will sometimes involve missing out along the way.