So Buyers Agents are becoming more and more known in the market place for the role they
play but what is it that they actually do when they are faced with a client who wants
them to help them out?
The first thing is generally a property that being identified or in some cases being presented
from the client.
And the first thing we got to do when we get that property is see if it is actually being
priced correctly.
Because quite often, there is a number of things that are actually going on.
For example, it might not be in a residential zone.
It might be in a commercial zone which has a huge impact on the price that the property
can actually achieve.
Equally, it may have varying title so it could have a standard, full green title or a torrence
title which is the highest and best title.
But what if it has a strata title or a stratum title?
Or in some cases, a company title?
All of these things really do affect the end price that the property is likely to get and
then of course, in the bigger cities, we have that enormous challenge which is underquoting.
So we got to see if the quote that is being reflected is actually going to be indicative
of the price that is likely to be on auction day or when negotiated in a private sale.
So as a buyers agent, that is the very first thing that we are doing.
Just making sure that it's been priced correctly.
Second thing we do is we then actually have to price comparables and actually find other
properties within the vicinity that are reasonable comparison for us to get an idea of what the
price should be.
So, first of all, we start from the land size in the same suburb to compare like with like.Then
it comes down to architectural styles.
Am I comparing a 1950s post war house with a 1930s Californian Bungalow because the market
has very difference expectation for those.
What about the amount of house that we are getting on the land?
This one over here might have a small house, this one over here has a larger one.
And then of course, the quality of the renovation or the fit out internally.
Is it original, in condition or someone put in a little of work into it to make it look
better, more contemporary and more liveable.
And of course, the flow of the floor plan between the two.
Ultimately, I think residential real estate is like a finger print.
No two are the same.
It's like if I got buy BHP shares no.53, it's no different than BHP shares no.72, they are
exactly the same.
But with real estate, even for apartments in the same block, they are not the same because
they have different aspects and different look.
So it makes it very difficult to easily price real estate but that's essentially what we
are doing.
Applying some technical craft, some experience and some intuition to help us get that right.
Once I've done that then I got to physically inspect that property and what I'm trying
to do is get an understanding of the suburb as a whole, and work out where the A-grade
street are, the B-grade and the C-grade.
I know that location does 80% of the heavylifting but I want to get into the better areas where
people have more desire to live, largely the owner occupiers because they will help drive
the price up for us.
Then, once I'm in the suburb and I'm looking at the streetscape.
As I'm standing at the front of the property, I want to see how that one compares in context
to the other ones on the street.
Am I in the higher side or the down side?
I want to know if it's a cut through street, I want to know if its tree lined or it's pretty
barren.
These are the things that we are going to do to help us determine what we are going
to buy.
And then I want to have a look at the neighbours.
If I'm looking at that property, what are my two neighbours and the one across the road
is actually like.
If they are not desirable then I would see a stead flow of tenants moving in and out
of the property versus people who are very house proud and look after their property
means that my tenant is likely to want to stay in the property for much longer.
And then, of course I walk into the property and I start inspecting the structure, what
the rooms are like and that sort of stuff.
So pricing correctly then doing some price comps then the inspection of the property.
If I am satisfied at the point, I then go away and do some due dilligence.
I look at the contract, that's where I'll find out what the title of the property really
is.
I'll get a building and pest inspector to go out and check the property to make sure
that this place isn't going to be a money pit, full of maintenance for the investor
moving forward.
And I guess, I want to have a look also, at approvals to the neighbouring property.
Are they selling because next door just got an approval to build a very big extension
at the bag which will not only create a lot of noise for the next 12 months but will also
create some overshadowing into the backyard for example.
So these are the things that we want to uncover and make sure that we are not buying something
that is potentially going to be a problem.
And the last thing I deal with, with a client is psychology.
Doubt and fear.
Most people would love to think that they can purchase property like a robot.
You know, it ticks all of the boxes, it's often the most used term in real estate.
But then, their mind and their values and their history and their fears and their doubts
kick in and they get remorse.
And they think, "Well, maybe I shouldn't.
What if interest rates go up?
What if I lose my job?
All of these things.
So a Buyers Agent has to deal with all of those psychological stuff that comes from
buying a very significant asset that most people only every do two or three times in
their lifetime if they aren't investing in property.
So it's an important decision that people need to make and we need to be aware of that
and provide enough EQ into the equation as well as the IQ that it takes to purchase the
property.
My conclusion is being a buyers agent is part time technician, part time psychologist.
Ultimately at the end of the day, there is so much that goes on with what a buyers agent
actually does but at the end of the day, it really does comes down to one thing and that's
helping a client to get to a position where they can say yes.
If they can say yes, they can ultimately move into their dream home and start create memories
or if they are investors, they can buy property that would contribute to the family's financial
goals and ultimately provide them with some financial freedom going into the future.
So there you have it.
A buyers agent is a really fun and exciting role to be a part of but there is more to
it than just bricks and mortar.
The psychology, the human component and also the bricks and mortar.
I wouldn't be anything else, I love being a buyers agent and I think its a very good
way for people to make better decisions when buying real estate.