The Role of Buyer's Agents When Investing in Australian Property
Australia's real estate market is rife with investment opportunities, but successful property investments involve so much more than just buying bricks and mortar. You need to be paying attention to developments in the surrounding area, negotiating a good price, attracting good tenants, and more. This is not easy, which is why many investors find buyer's agents valuable. This is how they can help.
What is a Buyer's Agent?
A buyer's agent, such as Fresh Start Advisory (https://freshstartadvisory.com.au/), is a licensed real estate agent or agency, but they work on the opposite side of the transaction to most estate agents. Instead of helping people sell property, they help them purchase it. Typically, they will be approached by clients who are looking to buy property, and the agent will start by helping them identify and evaluate viable options.
Access to the Market and Information
Although they may sometimes place bids or complete steps towards the purchase on a client's behalf, the main role of a buyer's agent is to be an advisor. This is because it is their job to understand local property markets and stay abreast of market trends, demand, and infrastructure developments. They can use this to help clients buy better value properties. Experienced ones may also have knowledge of off-market listings, giving investors more choice.
Due Diligence and Risk Mitigation
Besides helping clients select better properties, buyer's agents can also help them evaluate the buildings. They can assist with arranging or performing property checks, including building and pest inspections. They can also review property plans and zoning laws to ensure there are no legal issues for the client down the road. These checks help clients avoid investing in properties with inflated prices and serious issues.
Negotiating and Strategising
As licensed real estate agents themselves, buyer's agents are adept at negotiating with those on the other side of the table. With their understanding of pricing trends and fair value, they can give buyers an edge during negotiations. They can potentially save investors huge sums, and they reduce the risk of judgements becoming clouded by emotional attachment to a property.
Bidding at Auction
Not all property negotiations take place among two parties. In some parts of Australia, such as cities like Sydney and Melbourne, auctions are popular too. Many property buyers have never bid at an auction before, yet success at an auction involves some specific skills, like a good ability to read the room. Buyer's agents are experts who can bid on behalf of clients, or advise them on a bidding strategy instead.
Creating a Strategy to Meet Investor's Goals
Different types of properties are bought by different people for different reasons. Some want to rent their property out for the monthly income, while others want a property that will gradually appreciate in value over time. Some want one that they can fix up, while others want to focus on new builds. Buyer's agents will help investors come up with a tailored approach that meets their goals.
Conclusion
When it comes to property investments in Australia, buyer's agents play a crucial role. Their advice can result in significant savings, and they also take a lot of stress out of the big, hard decisions property investors face.