We’re all familiar with real estate agents and what they do, but that’s a rather general term for agents operating in the property market. Many real estate agents would more accurately be termed “sellers agents”. Some agents prefer to focus more on being “buyers agents”, but what is a buyers agent exactly, and how do you choose a good one?
What Is a Buyer’s Agent?
While dealing with both home buyers and sellers alike, many real estate agents often tend to favour the seller of a property when it comes to doing the deal. They also actively look for new listings. After all, an agent gets paid their commission once they’ve sold a home. Of course, to do that, they also need to find a buyer. The real difference with a seller’s agent is they can be a little biased towards what the seller wants rather than what the buyer wants.
On the other hand, a buyers agent is actively looking for property buyers, particularly those seeking homes and other real estates they can invest in. Buyers agents will regularly have a portfolio of investors who are periodically looking for new investment properties.
If you are a property investor and you team up with a real estate agent who classifies themselves as buyers, they will be more likely to work on your behalf with your best interests in mind. Not only will they search for properties or already have some properties on their list in mind, but they’ll also negotiate a better deal on your behalf and recommend properties that are likely to have a good return on investment in the years to come.
Australian Real Estate Investment
Investing in the Australian property market has been a tried and tested way of creating financial security and even wealth building for many everyday Aussies. More often than not, property prices continue to rise, which is good news for investors planning to sell up down the track and means the property owner can command higher rent prices, particularly in growth areas.
If you’re new to property investing, before seeking out an agent or investment properties to buy, it would be a wise idea to educate yourself by completing a property investor course. There is a lot to know about finding suitable properties to invest in, and how to go about it, so it’s well worth taking the time to learn as much as you can first.
Once you are more familiar with property investing in general, then it will be time to invest in properties and a good agent.
Buyers Agent – The Pros and Cons
Once you’re ready to invest in the property market, it’s really up to you whether you enlist the help of a buyer’s agent or not. These days, it’s possible to locate properties online yourself. If you decide to find yourself an agent, here are some pros and cons of buyers agents to be mindful of.
Not all agents are the same, so you’ll want to find an agent that has built up a positive reputation and has the experience to deliver what you’re in the market for. While there are many agents with integrity, some agents are just in it for the money only and won’t have your best interests at heart. Personal recommendations can be a big help in finding a good agent.
Keep in mind that both buyers agents and sellers agents want to earn commissions, so in a way, a buyers agent is still technically working for the seller.
A buyer’s agent is often focused on finding properties for property investors, which is a positive thing. On the downside, however, buyers agents tend not to have as many properties available as agents who focus on sellers and regularly add new listings.
When hot new listings appear, a buyer’s agent may contact you to let you know of this unique investment opportunity. They can even alert you to properties in other areas of the state and other parts of the country.
In Conclusion
For property investors, teaming up with the right buyer’s agent will usually prove to be a mutually beneficial relationship. Just be sure to educate yourself first, ideally go through a property investment course, before investing any money.
