Will 2019 see 80% or more buyers using Buyers Agents to get the best deals?

In many countries around the world over 80% of purchases are completed by using a Buyer’s Agent. In Australia we are for once a very late adopter, well that is until 2019. This year it’s predicted the engagement of Buyer’s Agents or Buyers or Buyers Advocates as they are also known will increase substantially and for very good reason. So today I will examine why.

The reasons why people proceed with a Buyer’s Agent are wide and varied, from busy time poor people, wanting a professional in their corner for analysis, sourcing, securing, negotiations and dealing with the verifications, inspections, and setting the property up to be operational. There are some that simply don’t enjoy interaction with Real Estate sales agents, who would have thought! Each has a very valid reasoning behind it, as buying/selling/moving houses is placed third on the all-time emotional impact list, just behind divorce and death of loved ones. As it turns out property means much more to us than just a place to hang our hat.

Today Australian’s are starting to acknowledge and value their time more so than ever before. So often if you are committed in your career, you’re working additional hours which leaves less time for external activities and quality time with family. This means do we take time off work to run around looking at property or miss kids’ activities to search? Do we look at just the properties available through the major Property websites of which is estimated at 55% and often only to find the photos look completely different to how the property is in reality?  Great photography and marketing skills of Estate Agents can make the most average of properties look spectacular online. This commonly leads to hours upon hours wasted viewing properties that don’t meet your needs. You may have even attended busy open homes where it’s like you’re queuing to attend a major event. The view of the property is limited between gaps in the people walking through and it’s from this that you are expected to make the decision on the largest spend maybe in your life.  It’s not ideal and this can strongly contribute to as why many countries around the world use Buyers Agents.  

Being able to make your decision from as close to the 100% of properties is very beneficial. The access to other 45% Off & Pre-Market Property increases the range of property considerably rather than being just based on the 55% or so on property portals. Having the better selection has numerous benefits but most of all you obtain the best result when you have as close to 100% of property available for selection.

Recognizing the roles each party plays within Real Estate transactions is also vitally important. Traditional Estate Agents act for the vendor or seller. When a seller is deciding upon who they should have represent them, each Agent comes in and provides their best presentation, highlighting their power in negotiating over buyers, getting the very last dollar from buyers, having amazing marketing that can make a moderate home look like a palace. These Agents do a brilliant job for most sellers and represent their client, the seller very well. The buyer is not represented in any way unless they engage a Buyers Agent. When this is done the Buyers Agent can liaise directly with the Estate Agents on a professional level. This immediately begins the process of gaining bargaining power. As any offer put through a Buyers Agent is well informed, documented and presented to the Estate Agent representing the seller in a highly professional way. Keeping in mind Buyers Agents deal with Estate Agents on a regular basis and know and understand the quirks, the negotiation skills of the given Estate Agent, they also will liaise over multiple transactions and not just a once off. All this adds up to a better position for those using the services of a Buyers Agent. The other people involved professionals to the transaction have their own fields of specialty, such as finance, conveyancing, pest or build inspections along with a range of additional professionals. The Buyers Agent can liaise with all these professionals to allow you minimal time absorption and present the key information to you in brief but with capacity to fully explain.

The most common mistake property buyers make is thinking the vendors or sellers Estate Agent is working for you. Right from the moment you either meet, speak or email, the Estate Agent is trained to commence a selling process with you. They are gathering information from you which they use during negotiations. They may also be engaging with your children to subliminally assist them. Estate Agents may ask the kids, “Which bedroom will be yours” so the kids tell their parents they want the house. These questions are designed to give them an unfair advantage over the buyers. As I said earlier, they’re working for the Seller and in most cases today received comprehensive training to get the best result for the seller. That’s their job!        

In 2019 buyers deserve the benefits that purchasing through a Buyer’s Agent. Australia’s Real Estate model is designed to protect the seller and unfortunately as it states in legislation “Buyer Beware”! It has never been a more important time in property to have the buyer’s represented too.