If you are familiar with the television program MythBusters, you know their goal is to put to test myths and urban legends that have been going around for donkey’s years and prove whether they are right or just that – a myth. Well, here at Rose & Jones, we aim to provide insight into what myths about buyer’s agents are wrong or right! Whilst we don’t get to perform fun experiments, we do hope you are able to understand our role and the value we can add to any property transaction, be it residential or commercial.
‘Asking Price’ Guarantee
Myth 1: A buyer’s agent will unequivocally buy the property well below the asking price.
Fact 2: Whilst it is a possible outcome, engaging a buyer’s agent does not guarantee that you will purchase a property below the asking price since the asking price is merely a value determined by the selling agent, however, a good buyer’s agent will:
• Give you access to 100% of the property market, not simply what you can find online
• Educate you on and determine the property’s value to ensure you never overpay
• Carry out formal and proper due diligence as to avoid purchasing mistakes
• Save you time and energy on subpar or overpriced properties
• Negotiate a reasonable price as well as favourable terms
On-Market, Off-Market, Pre-Market
Myth 2: A buyer’s agent will ensure you buy an off-market property away from “competition”
Fact 2: Engaging a buyer’s agent ensures you will have access to 100% of the market. This includes on-market, off-market and pre-market. However, this should not be misconstrued with the idea that buying an off-market opportunity is the ideal outcome for every buyer or client type. In many instances an on-market offering may well be the most ideal option for a particular buyer’s unique needs and requirements and by utilising and leveraging the buyer’s agents professional relationships, the purchaser enters into any transaction knowing they have visibility across the entirety of the market, which allows them to move forward with a purchase without hesitation and fear of missing a better opportunity.
Buyer’s Agent Worth the Fee?
Myth 3: A buyer’s agent is not worth the fee if I can go find and buy a property myself.
Fact 3: Whilst any individual can source and secure property unrepresented, should they? The Australian residential property market is currently worth $7 trillion dollars. You would not invest hundreds of thousands or even millions of dollars in the stock market unrepresented, why invest in property unrepresented? In addition, a Rose & Jones buyers agent is immersed in the property market full time and are involved in transactions, negotiations and due diligence on a daily basis. With this experience we give you back your time, we source properties on your behalf, carry out due diligence and ensure you don’t overpay on a property.
Good For Locals or Only Newcomers?
Myth 4: A buyer’s agent only benefits me if I am interstate or offshore.
Fact 4: A buyer’s agent will benefit any property buyer, whether they are a first-time buyer, a seasoned investor, or a family seeking their primary residence in a new or familiar market. Of course, it makes logistic sense for offshore or interstate buyers to have representation and someone to carry out the legwork on their behalf, however, it makes just as much sense for a local buyer to seek professional advice and assistance in such a high-stakes acquisition. A key value-add of using a buyer’s agent often lies in sourcing and negotiation.
Buyer’s Agents Are All Alike
Myth 5: All buyer’s agents offer the same service, so I should choose the cheapest.
Fact 5: As is the case in most industries, you truly do get what you pay for when engaging a buyer’s agent. You should check the following:
• Ensure your chosen buyer’s agent is independent of selling agents and exclusive
• What are the buyer’s agent’s due diligence methods?
• How does the buyer’s agent go about sourcing properties?
• Does your buyer’s agent have relationships with selling agents?
• Will the buyer’s agent ensure privacy and confidentiality?
Sourced from Stuart Jones from Rose and Jones Buyers Agency, Sydney.