4 Need-to-Know Facts About Property Investment Agents

4 Need-to-Know Facts About Property Investment Agents

Many new investors will consider external help as they start to feel overwhelmed by all the information and diverging strategies surrounding property investment.

While the answer to the question ‘do i need a buyer’s agent to buy a house?’ is a resounding ‘no’, it’s important to surround yourself with those you trust if you do seek out investment advice.

A property buyer’s agent or property buyer’s advocate may be someone you seek out when it comes to investing in your first property.

While many are very good at their job, there are a range of points to consider when it comes to property buyer’s agents so that you know you’re getting the very best advice.

It’s important to remember that investment property agents will not always act solely in your interests.

Here are 4 key facts that should be known by those seeking out the advice of a property buyer’s agent.

Agents can be selective

A property buyer’s agent can be selective when it comes to what homes to show you in your search for your first property investment.

While you might know what you’re after and convey this to the agent, they aren’t under any obligation to take you to something that fits that brief.

Nor do they have to show you every house out there that fits within your criteria. At worst, they can actually show you homes that only serve their own interests.

This may be because that home is easier to sell, or there is some other incentive behind choosing a certain home.

If you do go with an agent, it’s important to reinforce to them what you’re after and what you’re not. If they still persist in showing you property that isn’t for you, then it’s time to find a new agent, or go it on your own!

Agents will try to sell you a property quickly

At the end of the day, a property buyer’s agent priority is to sell you a house as soon as possible. People pay agents to find a property, and they’ll try to do this quickly to generate more clients, thus more money in their pocket.

This means that an agent may not necessarily get the best price on a property, or take the time to negotiate for a better price on your behalf.

You may be able to save quite a bit of money by taking the time to negotiate with the seller, which means more cash in your pocket instead. It’s almost impossible to find anyone who will work as hard to protect your finances as yourself.

Agents understate certain costs

As previously mentioned, a property agent will want to sell you a property ASAP. This may mean dismissing some of the concerns you have surrounding the property they are proposing you invest in.

There might be parts of the house you’re apprehensive about, knowing that the cost of repairs and renovations aren’t going to be insignficant.

An agent may try to downplay these costs, using their ‘experience’ as a way to reassure you that it’s not really something to be concerned about.

Keep an ear out for this false reassurance, and make sure you challenge what they have to say. Go out and get another opinion on what any repairs or renovations may actually cost.

Agents aren’t always in your corner

Although they are often referred to as a property buyer’s advocate, who they advocate for can often be up for debate.

Often, agents will rely on the same set of service providers whose purpose is to conduct appraisals, home inspections, legal work, and mortgages.

In order to maintain the working relationship between these inspectors, mortgage brokers, and buyer’s agents, the quality of the service may be in question.

A home inspection may not be properly carried out on property, providing a report on the property that meets the needs of the agent as opposed to the buyer.

They may neglect to raise certain issues with the property, such as structural flaws or other issues that may hinder the growth and value of the investment.

To avoid this potentially disastrous outcome, always conduct or organise your independent inspection, read the reports yourself, and carry out your own due diligence.