How To Choose The Right Buyers Agent
I know that most of you are well versed with the essential difference between a buyer’s agent and a sales agent. For the aid of a few who are uninitiated on this, a buyer’s agent works exclusively on the buyer’s behalf whereas a sales agent is paid to represent the best interests of the seller. Why then am I bothered if you already know the difference? Let me explain you why and I am pretty confident you will find my line of reasoning appealing.
Sales agents-turned-buyer’s agents
Due to the kind of potential they see in the buyer’s agent’s job, many suburban sales agencies are turning into full-fledged agencies, exclusively representing buyer’s interest. While this is thoughtful and there is no harm in moving with the times, there is something quite puzzling about this development.
Limited focus
The sales agents-turned-buyers agents working in suburban areas are pretty limited in their focus. They have pretty good knowledge of their area but their skills are brutally exposed once they have to jump beyond their local threshold.
This situation poses a grave problem to the buyers. The suburbs these local agents service may not be the most happening ones in the property market and you cannot use them beyond their oft charted territories. So it is more like a catch-22 situation.
Mentality of a salesman
Another big problem with the suburban agents is their roots in the sales industry. While an independent buyer’s agent (or for that matter any person on this planet) is also a salesman of sorts, the profession needs a lot of research. It is because the profession requires academic rigour and thorough knowledge of the market that the buyer’s agent’ often become extremely informed individuals.
Unlike the suburban sales agents who have sales and its theories crammed up, buyer’s agents tend to have an investor’s focus. Believe me such perspective, as the profession teaches them, makes buyer’s agents quite an asset for any investor worth his salt.
Sunset Clause….to cite an example
You may ask what sort of knowledge differentiates the two. Let me just say I will be mighty surprised if a suburban sales agent is well-equipped with various legal clauses which can go against a buyer on the later day. Take the Sunset Clause for example. With its help, a developer can annul any off-the-plan contract which crosses its stipulated date of development.
This clause is the reason why many buyers have lost on properties which have shot up in price between the signing of contracts and handing over of keys. Developers, once they come to know of the price hike, deliberately delay projects, and apply the Sunset Clause, thereby terminating the contract.
A buyer’s agent is skilled enough to negotiate on it with the vendor’s agent and even contest that the domain be exclusively held by the buyer.
Tax structure, legality, among other things
I also doubt if the local agents are well versed with the taxation structure. Add to this, legal loopholes, Superannuation-oriented investments (though even the independent buyer’s agent needs to pass an accredited course for this) and feasibility study of various projects.
These are reasons aplenty why a wrong selection of buyer’s agent may come to bite you back on a later day. You really need to conduct your Due Diligence well and choose your agent after proper scrutiny.
If you are located anywhere in Sydney, give me a call and I will try my best to skilfully take you through search, evaluation and negotiation associated with your property purchase.
Have you suffered due to the limited exposure or experience of a suburban sales agent in the past?
