Finding the right property can be nerve-wracking, it can be easy to get overwhelmed when there’s so much information coming from the internet, not to mention from real estate professionals.
There are many pitfalls that you should learn to avoid as a buyer in the property market. In a “hot” market, as we experienced through the pandemic, the increase in activity led to fiercer competition and fear of missing out on the buyers’ end.
Currently, the property market has slowed in comparison to 18 months ago, and while this can mean lower housing prices, there are just as many challenges that buyers must learn to navigate.
Some of the questions you need to answer as you start your journey include:
- Should I buy now or wait?
- Should I bid at an auction when no one else is?
- I’ve found a house that isn’t quite right but it’s incredibly cheap for what it’s offering – should I buy it?
- Should I buy off the plan now because by the time I settle the market may be recovered?
- What is the best way to purchase?
- The real estate agent says they will take an offer before the auction – should we make an offer before or wait?
It’s also important to consider the location, orientation and rarity of the property before you decide to purchase it. These are just some of the factors that you need to think about so you can make an informed property purchase decision.
Having a real estate professional by your side is crucial as you go through this journey- and we don’t mean a real estate agent.
A buyer’s advocate can support you in finding the property that suits your need by using their expertise, knowledge and negotiation skills.
What is a buyer’s advocate?
While buyer’s advocates have been around for some time, this part of the industry has become more popular recently because of the boom within the property market, creating more affordable options for different segments.
A buyer’s advocate is a real estate professional you can hire to research, evaluate and negotiate the purchase of the property on your behalf. They can advise you on the true value of your desire home and its resale potential. A buyer’s advocate will also have access to information that’s not readily available to the general public, allowing you to get valuable data on property that has yet to be advertised.
While real estate agents may act in the best interest of vendors, a buyer’s advocate is there to get the best price possible for you.
As the buyer’s advocate industry continues to grow, buyers need to be savvy in choosing which one to partner with. However, many people claim to be buyer’s advocates, even when they don’t have the necessary experience or connections to support buyers.
There are a few questions you should ask potential advocates before you decide on partnering with one:
- How long have they worked as a buyer’s advocate?
- How many clients have they successfully helped buy a property?
- How much experience do they have with first-time buyers?
- How much experience do they have bidding at auctions?
- What type of industry connections do they have?
- What is their buying process?
- Do they take on clients that will compete with your property needs?
Their answers will help you screen the authentic experienced advocates from the fake and inexperienced ones while giving you a clear indication of whether a potential advocate is a good fit for you.
5 reasons you should partner with a buyer’s advocate
The right buyer’s advocate understands the importance of finding a property that fits your requirements, and they have inside knowledge to help you search for high-quality options.
We’ve shortlisted five advantages of having a buyer’s advocate by your side when purchasing a property.
1. A buyer’s advocate will save you time
The purchasing process can take up a huge chunk of a buyer’s time and result in more work and effort than they bargained for.
When done alone, a buyer will need to search for properties that fir their criteria and make sure to visit open house inspections to check if these properties are right for them. A buyer will also need to do their due diligence before deciding on a purchase, and this will include building and pest inspections as well as contract reviews and conditions.
With the help of an advocate, a buyer won’t have to worry about any of these. A buyer’s advocate will handle:
- Sourcing off-markets
- Negotiating with real estate agents
- Finding and inspecting properties on your behalf
- Organising building inspections
- Sending documents to be reviewed
At Select Property Advocates, the grade of the property we purchase for clients is typically 2% to 4% of the market, ensuring that the options we present you are high-quality A-grade real estate. We will not waste your time with inferior properties and only set an appointment with you to inspect once there is a property worth looking at.
2. A buyer’s advocate will deal with real estate agents on your behalf
While there are certainly reputable agents in the industry, it can be difficult to trust agents when their primary goal is to achieve a sale or quota.
Underquoting is one of the most-used tactics real estate agents use with buyers. This enables real estate agents to create competition for a property so that they can get a premium price at the end of the day as more buyer drive up prices for the property.
Real estate agents may also use fear of loss tactics, telling you that there’s another buyer or another offer, even when there’s not.
A buyer’s advocate can give you the reassurance you need, as you know they will have your best interest in mind. They’re also familiar with the tricks that many real estate agents employ, so a buyer’s advocate will help you navigate those minefields. Agents know that buyer’s advocates are experienced professionals, so they spare advocates the tricks they use on buyers.
3. A buyer’s advocate is an insurance policy against buying the wrong property
Some buyers purchase the wrong property out of frustration, because they’re afraid of missing out or because they want to get on the property ladder as quickly as possible. This is one of the most common mistakes property buyers make when purchasing a property. It significantly impacts a buyer’s equity when their property doesn’t generate positive returns in the future.
Buying in haste or out of frustration and emotion can also mean you overpay for a property that may not suit your needs. Overpaying for a property that will only suit you short-term and having to sell sooner than planned can be a very costly exercise. A buyer’s advocate helps to keep you on track with both your brief and budget.
A buyer’s advocate will familiarise themselves with your brief and keep things on trach. It’s about finding the right property that suits your needs (i.e. orientation, floor plans, accommodations).
An experienced buyer’s advocate will have inside knowledge about real estate and will make sure they find A-grade stock property for their clients, ensuring that it gives positive equity in the long term.
At Select Property Advocates, the properties we buy always perform well now or in the future if our clients want to sell them.
4. A buyer’s advocate reduces your stress and anxiety
A buyer’s advocate will do the due diligence and necessary legwork to find the quality property for you. Because they take the time to understand their clients and what they’re looking for, it can become a very close and genuine relationship between you and your advocate.
Purchasing a property can impact your mental health, especially when you’re thinking about so many different considerations, such as your budget, your timeline and your property criteria. Having a good support system (which includes property experts) can go a long way in reducing the stress and anxiety that comes with buying a property.
Alleviating all of the negative emotions is especially important, as less savoury real estate agents can take advantage of a buyer’s emotional state when they’re alone. With a buyer’s advocate at the helm, you can have the necessary distance to stay level-headed when making major decisions about a potential property.
5. A buyer’s advocate ensures you stay within budget (but still purchase quality property)
Every property buyer should set a budget before going into a purchase. It can be easy for a buyer to go over their budget when they’re transacting by themselves.
Having a buyer’s advocate can ensure you stay within your budget while maximising what you can afford on your property. When a buyer’s advocate finds you the right property, that real estate can serve you in the future by giving you positive equity.
A buyer’s advocate also ensures that you are strategic in your bids at an auction, conscious about not overpaying for a property. An advocate will know the values of each property on a bid and will place you in your driver’s seat by helping you understand the quoting process and the true value of the properties on auction.
A buyer’s advocate is your staunchest supporter in finding the right property for you. They can deal with the challenges that come with finding (and buying) a property while ensuring that you are informed and in control of the process.
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