Buyer's Agents: Who Are They & Why Should You Refer One?

Attention all architects, advisors, accountants, brokers, builders, solicitors, conveyancers, planners, and real estate agents. Is your income dependent on homebuyers securing a home??

Before becoming a Buyer's Agent, I did my real estate apprenticeship as an accredited home loan qualifier. I discovered a recurring theme as I worked the phones day-in-day-out advising buyers and borrowers.

The clients often questioned the value of buyers' agents.?

Hour after hour, I listened as hapless potential buyers moaned about their frustration finding and securing a home. They talked about their defeat, despair, and disappointment; they shared stories about mistrust, treachery, and trauma. They described themselves as "frazzled, burnt out and?over it!" They sketched out scenarios where they'd started with boundless zeal and eagerness, but after a few weeks on the frontline, they were completely wiped out. Particularly in an uncertain market when things were not always as they seemed.

Things reached a midway point in their hard-luck story when I asked them point-blank, "Why don't you use a buyer's agent?"

The response ranged from the humble: "I can't afford one." To the haughty: "I can do it myself, thank you very much."?

Then there would be a long silence while they thought about what they had just said.

By the way, referring Buyer's Agents wasn't my job. I was just curious.?

When looking for a new home, it's easy for homebuyers to get overly excited, and all rationality goes out of the window! The buyer may end up paying far more than a property is worth simply because they've “fallen madly in love with it”, known in the industry as “emotional attachment.” The Buyer's Agent, on the other hand, enters a contract to buy a property on the client's behalf. It is purely a business transaction.

Buying a property involves countless emotions and can become very difficult. The beauty of engaging the Buyer's Agent is that they come in with a cool head and a calm approach. This is, first and foremost, a business transaction.

If you think about it, and I've thought about it a LOT, Buyer's Agents are an intriguing bunch.?

What is a Buyer's Agent?

A Buyer's Agent acts on behalf of a person buying a home. They navigate the home-buying process for those who are time-poor and/or don't have the physical or mental headspace to buy for themselves.?

Who is a Buyer's Agent?

Not just anyone can become a Buyer's Agent. The training requirements vary from state to state, but the minimum is a real estate license from the Office of Fair Trading.?

The Buyer's Agent background is more diverse than many sales agents. They bring valuable life experience and an endless array of transferable skills. The role is like a magnet for law, education, finance, and other people-based business professionals.?

Most are in their late 30s and older with a lifetime of kids, travel, and professional experience. They are attracted to the role thanks to their passion for property and appetite to help people. For many, it is a vocation they have strived for and worked relentlessly towards all their professional life. They need great people skills with tonnes of empathy and a very nice bedside manner. Equally important, they need knowledge in spades which they get on the hop since being a great Buyer's Agent means living, breathing, and sleeping real estate. It’s in their blood.

Others are from a real estate sales background.

Whizz-bang Communication Skills

One of the main benefits of using a Buyer's Agent is their network and the number of contacts they have in the local real estate industry. Their database includes most of the area's top-performing sales agents. The benefit of this solid network of rock-solid peer-to-peer partnerships allows for a more relaxed conversation with a foundation based on rapport, banter, and the ability to frame crucial questions and get straight to the point.

This ability to "talk shop" with listing agents enables Buyer’s Agents to zone in to extract critical information, and not just around the price. It helps with other essential insights that boost the decision-making process, such as knowing why the vendor is selling and who the competition is and whether the vendor will accept specific terms and conditions.? This level of insight helps determine the next step in negotiations.

It's all about the Buyer: They get star billing.

Access off-market properties every day.

Buyer's Agents have access to an entire network of off-market and pre-market stocks. They use their industry connections to get special access to opportunities like off-market or "secret" property listings that buyers would never be aware of. The fact that approximately 85% of the properties purchased are off market works massively in the buyer's best interest since they have more choices and better access to stock that others don't know about.?

These properties will never see the light of day on mainstream platforms. The kicker is that Buyers will never know the number of properties they miss out on until they see them pop up online as "Sold."

This is a godsend for sales agents and vendors since the opportunity to list a home off-market before its official launch is super attractive to many. ?Moreover, they have a better chance of selling a property fast. The Buyer’s Agent goes over and above to keep things?sweet?with the sales agent to ensure they get first dibs.?Vendors are happy when getting access to qualified red-hot pre-approved leads served up by Buyer's Agents, especially when they are loathe to commit to traditional 90-day agent agreements—no time wasters here, thanks!

Top Negotiation Tactics?

A Buyer's Agent has a thorough knowledge of the property market in the area/s the client wishes to purchase. They also understand all the benefits and drawbacks of the neighbourhood. This gives them an in-depth understanding of the relative value of homes in the area. They are better placed to negotiate the right price than a buyer without the same experience. They’ve done this many times before and know how to negotiate without emotion. This helps identify the property's suitability and market value and ensures it is secured at the best price.?

?Understand The Buyers Pain Points

A Buyer's Agent will take the time to understand precisely what the client is looking for in a property. They will narrow the brief down to two or three areas they are interested in, the type of property, the number of bedrooms, the price range, and a wide variety of other criteria. Then, based on their local knowledge and network, they will perform a targeted search in much less time than an average person would or could.

?Agility with Due Diligence

Buyer's Agents use their business acumen to deploy exceptional agility with speed and skill in all aspects of the process and paperwork, from chasing signatures and fees to dealing with stakeholders, organising deposit transfers, and generally kicking butt.?

?Buyer's Agents have a fiduciary obligation to put the client's best interests first, financially and otherwise. They know the law - for instance, it might be possible to continue negotiating the price and gain a significant reduction after the contract is signed if substantial defects are found after structural and pest reports, even after exchanging contracts.?Additionally, Buyer's Agents know how to negotiate a house price, so they understand where there is wiggle room for manoeuvre and how to get your client a better deal.

?Purchase property every day.

Buyer's Agents know what to look for during inspections and conduct all admin-related Due Diligence to ensure a smooth and stress-free property purchase. Every day, we network with industry professionals from financial planners, accountants, conveyancers, architects, designers, council representatives, building inspectors and more. Thanks to those connections, we can quickly answer questions and put out fires!

Negotiate on property every day.

Buyer's Agents negotiate the best deals for your clients by understanding where the value lies and making any terms and conditions as competitive as possible. Our market knowledge allows us to value the property and instinctively know where the ceiling is. Pro-negotiation tactics are advised to get the right property at the best possible price.

Buyer's Agents can formulate a successful real estate counter-offer strategy for buyers in cases where the property already has an offer. They will unearth every stone, including that in which the vendors may be willing to consider alternative proposals. Moreover, it gives the buyer bionic insight and allows them to see through any BS a sales agent might have otherwise sent their way.

What value can a Buyer's Agent bring?

Ultimately, engaging a buyer's agent is part of the due diligence process for any property transaction. Buyer's agents add incredible value, even when conditions shift in favour of the purchaser. Guiding a client through the home buying process will go more smoothly if they have the right people on their side.?

If you want more information about how a Buyer's Agent can make things easier, please reach out; we will be happy to help.

Sue Ostler, Buyers Agent @Real EstateTherapy,?understands the challenges and how they affect you. Whether you're a time-poor professional overwhelmed by the competitive Sydney market or would like to know more about the process, please [email protected].

From managing the inevitable emotions to assessing things with a cool head, we're here to help. We know the Sydney market well and understand it. If you'd like advice about the property market, whether you want to sell, buy or lease, drop us a line.

Email: [email protected]. Find out more at?treleaseassociates.com.au