In a climate where the internet is used for inspiration, information and insight to consider your next home, it is important to be well informed of the agent’s role in aid of your purchasing process.
REIWA Deputy President Hayden Groves said the sheer volume of property information available online is staggering.
“The days of having to pour over the classifieds and spend countless hours dashing through home opens are behind us,” Mr Groves said
Today, there is a growing demand for buyers agents whose services benefit time poor home buyers and investors.
“A good buyers agent will undertake substantial research before choosing a property to buy for their client, assessing yields, rents, affordability, suburb infrastructure, growth history, etc, and because the buyers agent is acting for their purchaser, they negotiate with the listing agent in a manner that sets out to buy the property for the lowest possible price on favourable buyer terms,” Mr Groves said.
This is particularly useful as you will often find yourself making an offer to purchase in competition with others. In these situations, while it is cardinal to remember that agents have a legal responsibility to act in the best interests of the seller, there are effective measures you can take to cope with buying in competition.
Tips for buying in competition
Mr Groves’ advice for buyers who are buying in competition is:
◦Ask the agent if there are any other offers on the property before submitting your own offer. This knowledge might influence your initial offer.
◦Consider removing some of the conditions of your offer such as a Building Inspection Report clause especially for more modern homes.
◦Ask the agent about the seller’s preferred settlement period and try to make your offer fit in with their needs.
◦The notion that agents will assume the buyer’s first offer is not their “best offer” is inaccurate. A buyer who tells the agent that this is their best offer should not assume the agent thinks it is a lie.
◦Know that you may only get one chance at buying the property; the seller is under no obligation to provide you with an opportunity to negotiate further.
◦Believe the agent when they tell you there are other offers in play.
◦Ask yourself if your best offer is really at your limit.
Read Hayden Groves’ realestateconversation.com.au blog.
Author: Marcus Tan
Communications from REIWA