Why a first home buyer might use a buyer’s agent
While many believe they are only for the wealthy investor, there are reasons why a first home buyer might use a buyer’s agent. Unlike real estate agents, buyer’s agents work exclusively for the buyer. It is the role of the buyer’s agent to help someone through the process of buying a property.
Before we get straight into it, let’s run through the types of services a buyer’s agent can provide:
- Property Analysis – tailored property reports, so you know exactly what you’re buying
- Auction Bidding – the agent will research the property and take your place on the big day to get the best result possible
- Negotiation Only – your buyer’s agent will negotiate with the real estate agent on your behalf to help secure the deal in your favour
- Full Service – in this complete service, your buyer’s agent will undertake a comprehensive property search and assessment, then negotiate or bid on your behalf, helping you all the way to settlement.
Now you understand how a buyer’s agent can help, let’s look at why a first home buyer would use these services.
Buying a home for the first time is no easy feat, especially if you are time poor and lack prior knowledge. Many professionals don’t have the available hours to do the research, while some have other commitments like caring for a family. It makes complete sense why some first home buyers spend the money hiring a buyer’s agent to do the legwork.
Some buyers set themselves an urgent timeframe to enter the market, while others just can’t stomach the months of research and sacrificing countless weekends to inspections.
It comes down to this: are you willing to do the work (and invest your time), or not?
Property market valuations can vary wildly, even when comparing two neighbouring suburbs. Understanding the complex nature of each micro-market can take some time to grasp. Sometimes it’s easier if you leave it to the expert. Especially if you have no idea about the market you are moving into.
Take for instance the Sydney property market. There is the general idea that the east is more expensive than the west, but the comparison can become more minute.
For example, let’s consider how the recent property downturn impacted similar suburbs. Lower North Shore traditionally bucks the trend of softening markets, and this was true for house prices in Mosman and Cremorne. However, nearby Lane Cove recorded some of the worst declines in Sydney. If we look at some inner-city suburbs, Paddington and Surry Hills had some of the highest growth in the city, while close neighbours of Redfern and Alexandria had some of the worst declines on average.
Point being, property markets are not simple. For a first timer, some advice can certainly make all this micro level stuff a breeze.
Let’s face it, some first home buyers are happy to do their own research. They put in the effort, analyse various properties and narrow it down to a select few. And then, the negotiations begin, and many a hope and dream start to crumble.
This is where a trusty buyer’s agent can step in and ask the right questions to help secure a better deal for the buyer. The vendor will already have a price in mind, but this can be challenged with a good enough argument.
Buying property is not something people do regularly, so a bit of professional help at auction or the negotiation table can go a long way.
Buyer’s agents have access to off-market opportunities due to the various relationships and networks they have built up over the years. They can source off-market deals you would never know about and provide access to potential properties before they hit the open market. This is an attractive benefit for many buyers as it offers more options and can lead to a smoother process with better outcomes.
Removed from the emotional aspect of buying a home, a buyer’s agent can look at the situation realistically. First home buyers can get too attached to a particular property or feature and lose sight of the overall value. Some can be so blinded they ignore potential issues, pay more money than they should, and end up with a shoddy deal.
The objectivity of a buyer’s agent can really help buyers avoid unhelpful compulsions. Plus, thanks to their knowledge and experience, they can tell when a vendor is asking too much for a property.
Knowledge & Experience
For a first home buyer, a great buyer’s agent goes out of their way to answer questions and help them through the process. Given the complexities of market value, the knowledge of an expert is invaluable when you make that final decision. Their extended experience dealing with a variety of properties and agents can make the process a real breeze.
Nobody wants to make mistakes, and it’s far better to pay a bit and get some professional advice than make a bad purchase. It all boils down to what an expert can offer you. They’ll not only help you find a place you love, but a place with promising long-term growth.
Buying property is a funny thing
You need to commit so much time and research to understand the market, and yet the average Australian will only make a couple purchases in their lifetime. There’s not a lot of legroom to learn from mistakes.
If you’d rather get it right the first time, one of our buyer’s agents can take the load off your hands and ensure a speedy process to buying the home you want.Learn more
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