Do we really need buyers agents in the UK?

Buyers Agents and the UK market in 2024

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The role of the Buyer's Agent has evolved to become increasingly significant. As the market grows more complex with fluctuating prices, changing interest rates, diverse property regulations, and our time becomes more precious, home buyers are in greater need of professional guidance than ever before. This realisation has spurred the rise of self-employed Buyer's Agents who offer a bespoke service tailored to the specific needs of their clients. As an experienced property professional & business coach I see a unique opportunity to embrace this trend by following a simple yet powerful model that meets the demands of today's time-pressed and stressed home movers. Anyone can become an average, order taking estate agent, only a handful of agents will have the skill, experience, empathy and negotiation skills to be a successful and profitable buyer’s agent.

I was recently talking about this with Simon Gates and Chris Buckler, if you don’t know them they sing from the same sheet…. Educate, empower and push for the industry to do better for our clients and to raise standards.

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Recognising the Need

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Home buyers today often find themselves overwhelmed by the complexities of the property market. Between managing demanding careers, family responsibilities, and various other commitments, they simply do not have the time to navigate the intricacies of buying a home. They need a dedicated expert who can guide them through the process, saving them time, money, and stress. This is where a buyer’s agent comes in, offering a focused service that is free from the conflicts of interest that can arise when working with a traditional selling agency. It’s also relevant to mention our willingness to stay at home and away from the office or work (since 2021) and away from viewing properties in busy towns and cities. We have become lazy and static. If you can buy everything else on-line, why can’t you buy a home without moving from your screen?

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?The Proposed Model (Keeping it simple.

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To effectively serve this market, I propose a straightforward model that encompasses three key components: an upfront retainer paid for a 90-day search period, a percentage of the home's value as a success fee, and a percentage of the money saved during negotiations. This model not only ensures that the service is tailored to the client's needs but also aligns the agent's incentives with those of the buyer, fostering trust and transparency. If this model excites, you’ll need to really pick clients wisely and have a good handle on both human nature and the questions you must ask to A. understand a client’s needs and B. establish their motivation and goals. You are potentially going to be working very closely with a buyer for many months and making sure you’re a good fit is essential.

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?Upfront Retainer

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The first step in this model is to charge an upfront retainer fee for a 90-day search period. I’ve used this approach many times with both investors, developers and regular buyers. This fee ensures that the agent is committed to dedicating the necessary time and resources to finding the ideal property for the client. It also provides the client with peace of mind, knowing that they have secured the services of a professional who is focused solely on their needs. The retainer fee covers the initial consultation, where the agent and client discuss the buyer's specific requirements, preferences, and budget. It also includes ongoing communication, property searches, scheduling viewings, and providing expert advice throughout the search period. Charging a fee focuses the client on your value and helps them to decide if they really want this move. Don’t enter this without the client having some ‘skin in the game’ Your time is money.

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Success Fee

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Upon successfully finding and securing a property, the agent charges a success fee, which is a percentage of the home's value. I’d recommend at least 2% + VAT. This fee reflects the agent's expertise and the value they bring to the transaction. It is only payable upon the successful completion of the purchase, ensuring that the agent is motivated to find the best possible property for the client. By tying the fee to the home's value, the agent is incentivised to secure a property that meets the client's needs and offers the best possible value. You may need to introduce a minimum fee structure; this is a low volume business and working out your hourly rate of pay is a good starting point that helps you decide what to charge. Remember you’ll typically be working with higher priced homes and not with first time buyers.

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Savings Percentage

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In addition to the success fee, the agent charges a percentage of the money saved during negotiations. This fee aligns the agent's incentives with those of the buyer, as both parties benefit from a lower purchase price. The agent's experience and negotiation skills are crucial in this stage, ensuring that the client gets the best possible deal. This component of the model not only rewards the agent for their efforts but also provides tangible savings for the client, making the service even more valuable.

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Leveraging Experience and Contacts

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As a seasoned estate agent, I have a wealth of experience and a network of contacts that can be leveraged to provide a superior service to my clients. This experience allows me to navigate the complexities of the property market with ease, providing expert advice and guidance throughout the process. My contacts in the industry provide access to off-market properties and valuable insights that can give my clients a competitive edge. By combining this experience and network with the proposed model, I can offer a service that is both simple and powerful, meeting the needs of today's busy home movers. Any agent with a few years’ experience who has bought and sold personally and understands their local market can put their toe in the water. Offer the service, road test it, gain some confidence and if the outcome is successful push on.

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The Client-Centric Approach

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One of the key benefits of this model is its client-centric approach. By focusing solely on the needs of the buyer, you can provide a service that is tailored to their specific requirements. This approach eliminates the conflicts of interest that can arise when working for a larger agency, ensuring that the client's best interests are always your top priority. By charging an upfront retainer, a success fee, and a percentage of the savings, you can offer a transparent and fair pricing structure that aligns your incentives with those of the client. This fosters trust and builds long-term relationships, ensuring that clients feel confident and supported throughout the home-buying process. Once completed they will happily recommend you to friends and family.

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Navigating the Complexities of the Market

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The British property market is renowned for its complexity, with varying prices, regulations, and legal requirements. As a buyer’s agent, you can provide the expertise and guidance needed to navigate these complexities with ease. From understanding local market trends to negotiating the best possible deals, your experience and knowledge are invaluable in ensuring a smooth and successful transaction. By offering a service that is focused solely on the needs of the buyer, you can provide the support and advice needed to make informed decisions, reducing the stress and uncertainty that often accompanies the home-buying process.

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The Importance of Personalised Service

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In today's fast-paced world, personalised service is more important than ever. Home buyers are looking for agents who can provide tailored advice and support that meets their specific needs and preferences. ?If you hone your “Person Centred Approach” as a buyer’s agent, you’ll have the flexibility to offer this level of personalised service, taking the time to understand each client's unique requirements and providing a bespoke service that enhances their home-buying experience. This personalised approach not only makes the process more enjoyable for the client but also ensures that they find a property that truly meets their needs and offers the best possible value. You save them time, money and stress.

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?Building Long-Term Relationships (the world dislikes transactional agents!

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One of the key benefits of working as a Buyer's Agent is the ability to build long-term relationships with clients. By offering a service that is focused solely on the needs of the buyer and providing ongoing support and advice even after the purchase is complete, you will foster trust and loyalty. These long-term relationships are invaluable in building a successful business. By following the model, you can offer a service that not only meets the needs of today's busy home movers but also builds lasting relationships that benefit both the client and the agent.

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Conclusion

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Whilst Buyers Agents in the UK have been around for many years and some very successfully, the niche is now becoming more of a norm. We have seen a huge rise in the number of Business Owner Brokers successfully set up and run their own estate agency businesses in the last 5/6 years and so we have more than enough great agents to fill this void. There is an increasing need for more buyers’ agents. Agents just need to get better at asking the right questions and offering a service that is in my opinion needed. I don’t see this as a revolution, more an evolution and one we should not fear. Licencing and regulation are long overdue and while there are signs of greater professionalism in our industry, we have a long way to go.

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If you would like to see a Buyers Agreement or a typical Client Consultation sheet I will supply you with both documents.

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Thank you for reading.