Wednesday, 25th March 2015
How can a Buyers Agent help in the current market?
Following housing price increases of 13.7% in Sydney and 5.9% in Brisbane over the 12 months to February 2015, many expected the capital growth to slow down to single digit growth during 2015 in Sydney and Brisbane to increase further. Instead the property market has started 2015 with a bang for both cities, particularly since the February interest rate drop. In the current market we are seeing no shortage of buyers at open home inspections, as per previous years the supply of properties is still below demand. The role of a buyers agent is to assist buyers by providing an advantage over other buyers and in doing so provide the expertise to allow clients the confidence in making decisions. Below is an outline of how a buyer’s agent assists their client in a hot market;
- Secure a property – most property buyers purchase a property every 5 – 10 years, whereas a buyers agent is regularly purchasing property on behalf of their clients. Whether it be off market, private treaty or an auction you need to have a negotiation strategy. A buyers agent has the experience to derive a purchase/negotiation strategy that puts their client in the best position to secure (purchase) the property at the right price.
- Save you money – if we use the Sydney market as an example, last year the average house price increased 13.7% p.a. Therefore for every month which goes by and you haven’t purchased, you are paying an extra 1.14% for the same property. Having time and experience to apply to your search and negotiation, a buyers agent has the ability to find you the right property and negotiate the right price in a quicker period of time than most buyers.
The current hot market makes it easy for real estate agents to leverage off the high demand levels and draw more money out of buyers. A buyers agent will provide advice and an appraisal on a properties value, meaning you have the data to make an educated decision and prevent over paying for a property.
- Broadening the horizon of potential properties – A buyers agent is well connected with real estate agents and developers, both of which like dealing with buyers agents as they’re repeat clients and assist them in making the transaction easy. This translates to advantages for buyers agent clients as their presented with off market opportunities (properties which are not advertised to the general public). Buying an off market property means you remove or minimise competition from other buyers.
- Experience allows purchasers to buy with confidence – A buyers agent is able to analyse a properties value and complete the necessary research to provide the facts which assist a client to purchase with confidence.
If you’re currently in the market or about to enter the market to purchase a property, don’t wait another 6 months and potentially pay a further 6.84% for the same property, give Prosper Group a call to discuss in more detail how we can assist. Example of a recent purchase: We recently purchased a 3 bedroom, 2 bathroom, 1 car home on behalf of a young family in Cremorne.
Strategy: The property was going to auction and in our view/analysis the vendor had an unrealistic price expectation and was not prepared to negotiate. The property was passed in at auction, Prosper Group did not make a bid as the reserve price in our view was again above market.
A week following the auction Prosper Group commenced negotiations and within a week and a half our client had exchanged contracts, achieving a large discount to the vendors original expectations. Prosper Group was able to secure the property using terms, even though at the time of exchange there was a higher offer on the table from another buyer.
Two months following exchange of contracts, a deceased estate two doors away from this house in the same street, with the same size block and aspect however unliveable in it’s current state, sold for more than our client paid.
Our client is very happy!