Why you should use a Buyer's Agent

As your investment property buyer's agent, we are duty-bound to achieve the best possible outcome for you.

 

The same is also true for the seller's real estate agent. 

 

The real estate agent representing the seller is duty-bound to get the best deal for the seller as well.

 

Therefore, any seller represented by a real estate agent has a significant advantage over the property investment buyer if they’re not also represented by a buyer's agent.

 

Going solo can lead to the buyer making a poor investment property buying decision because they may end up buying a property that doesn't make any money.

 

Real estate agents are not rogues, but they are salespeople.

 

They love to find out what you're looking for in an investment property and then highlight those aspects of the properties they show you.

 

A common tactic used by real estate agents once you show an interest in a property is to convince you that there are other buyers also interested, and then your FOMO takes hold and you make an offer on a property before anyone else does.

 

Of course, you are then encouraged to offer more as there are now multiple buyers making offers, apparently, and you end up paying too much for a property that may or may not be investment-grade.

 

Once the seller accepts your revised offer, you figure the real estate agent was helping you, so overall you feel good about your purchase.

 

However, the real estate agent is not interested in whether your investment property makes you any money because it's of no concern to them.

 

Their job is to sell the property as quickly as possible for the highest price.

 

Buying an investment property should not be an emotional undertaking and you should never feel rushed or pressured into making an offer or counteroffer.

 

You're not buying the property because you love it, you're buying it because you love the money it's going to make for you.

 

As such, property investment buyer’s agents take the emotion out of buying investment property.

 

They also recommend properties that are truly investment-grade i.e. properties that are cash-flow positive even when mortgaged and have a long history of good capital gains.

 

Historical returns are no guarantee of future earnings, however, investment-grade properties rarely disappoint, and because no one can see into the future, we have to use past capital gains as our indicator of future capital returns.

 

Buyer’s agents have all the capital gains information for every suburb, and indeed every property that has been sold throughout Australia. 

 

They are also able to accurately forecast the rental yield of the property and should show you the various rental models available to you, so you can be confident you will have a cash-flow positive investment property.

 

Buyer’s agents therefore take the guesswork out of buying investment properties.

 

They also, if they are any good, only recommend low-risk properties and suggest mitigation strategies in case something like a COVID-19 pandemic occurs again. 

 

Mitigation strategies are crucial, as they act as insurance against future loss of income.

 

Good investment property buyer’s agents also have hundreds of insider contacts in the industry. 

 

Cultivating these contacts is what good buyer’s agents spend most of their time doing. 

 

These contacts connect with the buyer's agent when they know an investment-grade property is coming to market. 

 

The reason why these contacts want to deal with buyer's agents is that they know that the buyer's agent has clients who are pre-approved for finance, know what they want, and are ready to purchase, sometimes within 24 hours.

 

This suits the real estate agent acting for the seller because if they can go from pre-listing to sold in 24 hours, they will have a happy client, a happy boss, and have earned their commission with very little effort.

 

Typically, there is a two-week delay between a seller contacting a real estate agent and the property being listed on Realestate.com.au, etc.

 

Once we know the address of the property that's about to come to market, we can conduct a market and suburb analysis, and property appraisal and make accurate cash-flow projections. 

 

This allows us to determine exactly what the property is worth and what the projected rental income will be without the seller's real estate agent divulging the price the seller is asking.

 

We then usually get access to the property when the real estate agent's photographer visits the property to take photos for the listing or they send me the video themselves. 

 

At this point, we can confirm or revise my property appraisal and provide you with a complete tour of the property and the immediate surroundings and send this along with the property investment plan to you.

 

You are then quickly able to determine if the property is right for you.

 

If it is, as your buyer's agent we will make the purchase offer based on the most up-to-date market information we used to conduct the appraisal.

 

The seller’s real estate agent knows the due diligence we have conducted and usually, there is very little argument about the offer price.

 

We then handle the pre-settlement paperwork and red tape and ensure everything runs smoothly on the day of settlement.

 

At settlement the property transfers to you, and that is when the property management process begins.

 

Good investment buyer’s agents are also excellent property managers. 

 

They know which rental models create the greatest cash flows and surround themselves with experts in every aspect of property management to ensure their client is getting the highest possible yield for their investment property.

 

This is something Precision Properties Australia excels at.

 

Finally, good investment buyers agents/property managers are not pushy salespeople. They are professionals, like lawyers and bankers, etc. 

 

If you don't see the value in having a lawyer act on your behalf during the purchase process, then the lawyer won't try to make a pitch to you. They have enough work already from those who do see the value.

 

The same goes for investment property buyer's agents. They can only take on so much work. If a buyer doesn't see the value in the services the buyer's agent provides, the buyer's agent won't try to sell them something they don't want.

 

Less than 1% of properties that are sold are investment grade, and they all sell before the general public gets to see them.

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Additionally, less than 1% of Australian property investors own more than five properties because 99% of property investors buy negatively geared properties.

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If you have dreams of becoming wealthy as a property investor, we should work together.

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Precision Properties Australia helps buyers buy cash flow positive properties in suburbs with above average capital gain.

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If you would like to be one of those people, please book your free 30 minute strategy call to see if we're a good fit.

 

We look forward to helping you.

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