From bootstrapping to bespoke: Buyers Agents are becoming the “new normal” in Australia.

“I wish I’d known earlier a real estate agent could help me buy a house. I’m telling all my friends!”

As a Buyers' Agent I love the innocent excitement clients feel when I help them snap up their dream home. That childlike, heartfelt happiness is contagious. And it's important to me that my clients are so blown-away by my smooth, stress-free buying process, they want to spread the word …

The reality is, Buyers' Agents are selling themselves. Oh yes. And here at Kitty & Miles we know the cat is definitely out of the bag. For property investors who thought their Buyers' Agent was a secret weapon … sorry, but the rest of Australia is catching up! 

The rise of the Buyers' Agent

It’s true that until recently Buyers Agents haven’t been as widely used in Australia as other countries. 

When I returned to Australia after working for years in New York, I was surprised by the lack of understanding of Buyers' Agents – or Buyers' Advocates as they’re referred to overseas.

In North America and Europe, Buyers' Agents are as much a fact of life in real estate as “For Sale” signs and open homes!

People have lightheartedly suggested to me that maybe because we all grow up playing Monopoly, we all like to think we’re property experts lol. 

Reality TV vs Realty

In recent years, reality TV has also sent a message that anyone can run their own property show.

The Block? Everyone’s an interior decorator (except they aren’t). 

House Rules?  Good drama, so-so design. 

Selling Houses Australia is more my kinda show. It’s not just Logie-winning host Andrew Winter’s deadpan British humour we love. 

He hits home with hard truths.

Viewers will know just how often Winter’s renovation rookies overestimate the value of their property. 

Luckily for them, Winter isn’t just a makeover magician. He’s a credible professional with expertise built on years of training and on-the-job success. 

Selling Houses actually helps people understand the importance of using specialists when it comes to property. In this show, people are usually looking to sell their home and purchase a new one – so you get insights into sides of the equation. 

Winter’s key messages highlight exactly why Australians are starting to leave the “middleman” out when buying property, and turning to authentic experts:

·       A good agent understands the true value of a property

·       They research and recognise what is currently selling in an area

·       They truly “get” property psychology, including both the buyer and seller mindset

·       People who take on board professional advice save time, money and drama.

Simplifying your life with specialist help

Australians are a pretty self-reliant bunch. We’re also pretty laid-back. We’re used to what economists call “bootstrapping”: thinking we can rely on our own resources rather than seeking external help in sourcing products and services.

But these days bootstrapping is falling by the wayside. Australians are seeking bespoke solutions that meet their needs, and meet them now.

The simplest reason for this? Time.

There’s a sea change in how Aussies access services, which is why Buyers' Agents are starting to become as popular as they are overseas.

We’re all time-poor. We often hear that, but think about why we’re so strapped for time.

In 2019, it can take two incomes to buy a family home. People are working longer hours, and staying in the workforce longer to pay off mortgages.

House prices in Sydney and Melbourne are predicted to start growing by 12% annually.

This isn’t meant to be doom and gloom. People want to own houses and there are plenty of ways to get into the market – which I promise I will cover in future articles.

But the pressure on families to balance the necessity of work with all the other important things in their lives means something has to give. We all know that feeling of Monday rolling around and wishing you had another weekend for your precious family time and fun stuff (let alone essential day-to-day activities that keep the household going!)

Throw a major purchase like a home into the mix … and the wheels can grind to a halt. No wonder Australians’ consumption of professional and personal services is on the rise. 

Time-poor = service-savvy

According to the Australian Taxation Office and consumer researchers Roy Morgan, each year Aussies are more likely to outsource services. 

Women don’t dye their hair at home anymore; they go to a hairdresser. 

A huge 75% of Australians use a professional to file their tax return. 

As well as going to specialists for everything from tyre repair to therapy, the popular share economy has made people more familiar with the idea of outsourcing other tasks they used to do themselves.

Australians are big fans of the side hustle. We ride with Uber and sleep at Stayz apartments. We connect with the 1.7 million people who use Airtasker to find people who will help us with services we need or are too busy to get to, from pet sitting to painting. 

We’ve even seen people ask for recommendations on Airtasker for advice, like recommendations on the best computer to buy, or a name for their business!

Nothing quite as big as a house though. If you think about it, it’s counterintuitive to seek out an expert for your house sale, but DIY your property purchase. When we buy other big ticket items like luxury cars or the latest smartphone, we beeline straight for the nearest Tesla or Telstra store and sales agent!

Finding the right Buyers' Agent

Before people engage external experts for new tasks, they often rely on consumer reviews and objective authorities like CHOICE magazine for guidance on who they can trust to deliver the goods. 

CHOICE interviewed property expert, UTS Associate Professor Vince Mangioni, about whether Buyers' Agents are worth the investment. 

Associate Professor Mangioni emphasised that as “most people would not buy property more than three times in their life and don't have the skills to do it," using a Buyers' Agent can offer real value particularly when valuing a property, bidding at auction and closing a deal.

Buyers' Agents, like myself, are really buyers' advocates – and are well known in the US. 

Like advocates in other professions, I choose to work with the highest standards of ethics:

·       As a member of the Real Estate Institute of NSW (REINSW) I operate within strict codes of practice. I work only for the buyer, never the seller in a transaction.

·       I offer a flat rate, not a commission-based, service.

·       I am transparent about what I may offer you. I can genuinely source off-market or “silent” listings, but I won’t pretend there are thousands on the market at any one time.

·       I respect your boundaries. If you just want me to negotiate your purchase for you, that’s fine. If you want end-to-end service, I offer that too but I won’t up-sell you.

Before enlisting a Buyers' Agent as a trusted specialist to outsource any gaps in your own knowledge, you should feel comfortable asking questions and seeking any reassurance you need. Contact me for a friendly chat about your needs, and see why our previous clients are keen to spread the word. 

Kitty Parker

KittyandMiles.com.au