Purchasing a house is one significant investment you will have in your lifetime. So it’s only natural to plan things out and make sure everything is sorted out before the deal comes to a close.
Naturally, you’d want to get the best deal at the most competitive price as much as possible. Unless you’re a skilled negotiator and familiar with real-estate regulations, you want an excellent representative to negotiate on your behalf.
These people are called buyer’s agents.
But what exactly it is they do, and how do you select one? We’re here to answer these crucial real estate questions to help you with your real estate journey!
What is a Buyer’s Agent?
Buyer’s agents have licensed property professionals that represent a buyer in a real estate deal. Their primary loyalty is to their client, and they make sure you get all your needs met in the transaction.
Why Do You Need a Buyer’s Agent?
Buyers agents are there to help you save time, effort, and cost when investing in real estate. Their goal is to find the property at the best price and under the best terms for you.
In a nutshell, some of their primary responsibilities include:
- Assessment of the actual market value of a property to help you, the buyer, make an informed buying decision.
- Research relevant details surrounding the property or sourcing other properties in the best possible locations that perform more competitively than market averages.
- Negotiate on an investor’s behalf so they don’t spend too much in the negotiation process.
- Act in the buyer’s best interest to build their property portfolio in a secure and safe manner.
Buyer’s Agent vs. Real Estate Agent
Buyer’s agents are also real estate agents. The only difference is that buyer’s agents are loyal to the buyer’s best interests and will negotiate for the buyer.
But the comparison does not end with this notion.
More often than not, buyer’s agents will negotiate against other real estate agents representing the seller’s side.
Real estate agents are psychologically trained to strategize and negotiate in the best possible way in favour of whom they act on behalf. That said, your buyer’s agent must be experienced and knowledgeable enough to leverage the negotiation.
After all, an agent’s experience shapes their knowledge in the field.
That said, how do we choose the best buyer’s agents? Here are our top 5 criteria!
Metrics in Choosing the Right Buyer’s Agent
Before delving into the nitty-gritty, let us give you an illustration.
Say a buyer’s agent helps you buy a property worth $500,000 that performs at 6% annually. You can expect the asset price to grow to double the original value in 12 years.
But if you bought a similarly priced asset that performed at 8% per annum, you could earn $200,000 more than what you did in the first deal for the same amount of time.
Just rubbing in how integral it is to get a competitive buyer’s agent. Here are the metrics:
It might seem obvious, but countless people are deceived by license-less and inexperienced buyers’ agents simply because they were too trusting and the fees were deficient.
Pro tip: If their fees are way below average, run!
If you will outlay a considerable amount, be sure to who you’re handing that money.
Look for someone with a real estate license for the state they’re working in. You may visit the Office of Fair Trading in your state to check the agent’s legitimacy. On top of that, not their words but their portfolio must speak for them too!
License is one thing. Experience is another.
In the book Outliers, Malcolm Gladwell expounded on the concept of 10,000 hours. According to the author, it takes around 10,000 hours before one could call himself an expert in the field.
Putting that in perspective, if your agent works 8 hours daily, five times a week, then one year of work would amount to 2000 hours.
That said, look for one with at least five years of experience to be your agent. Additionally, make sure you spent those years in the place where you plan on buying the property!
Network and database matter just as much as experience.
You want buyer’s agents to be on the speed dial of top sales agents. One has the means to show you all available properties for sale on demand.
It includes on-market properties, off-market properties, and even properties in their pre-market stages.
Plus, they must know the people you’ll be needing, like building inspectors, finance experts, and solicitors. The final goal is to make life easier for you!
- 3Ps (Perfect property portfolio)
Anyone can be swayed by big talk, on Instagram or TikTalk but never let words get in the way of your success. Set aside all the talking and focus on results.
Ask them about their property portfolio. Deals they’re doing now, and they’ve done before to verify their authority.
If they tell you to do something, wouldn’t you want to be sure that they’ve done the same successful thing in the past? To be sure.
You want agents who specialise in the area you’re in, not general practitioners. It verifies that they’ve done that before, and they know what they’re doing now.
Take note Jacks of all trades are masters of none. So better find a master of one (your type of property and local ) to help you throughout!
- One-man-band or team?
As much as possible, you want independent agents.
You want people that are solely focused on you and your best interests. Not of you and the people backing them up.
On top of that, choose people who are open to letting you in on their case studies of recent purchasers or reviews of previous clients.
It is how you sift the trustworthy from those that are not.
A buyer’s agent should always be on your side no matter what. But what good is a loyal buyer’s agent if their experience, negotiating skills, and network will limit them from giving you the best deal?
Always scrutinize the people you entrust your money to. Always raise these points when talking about getting a buyer’s agent:
When you do your own research, you can look for third-party organisations like Buyer Agent Finder to help you look for buyer agents. They can assist you in looking for the best buyer through:
- Asking for your details and your buyer agent’s requirements
- Taking advantage of smart tech solutions to narrow down options that will suit your needs
- Showing you competitive buyers’ agents that can deliver the job effectively and efficiently
- Connecting you with potential buyers’ agents when needed
All buyers’ agents that you can find on their site are qualified and verified.
So, ready to buy your next real estate? Hire a good buyer’s agent now!