inOz2008

Amidst the myriad of posts of folks moving to Oz, falling house prices, job searches despite higher unemployment, etc this is one thing that i have not come across...I am keen to understand how they operate in today's food-chain of hopeful buyers, desperate/hopeful sellers and 'honest honorable agents etc

Reading a recent post on Oz being oversold/overpriced as well as mixture of signals in the media on direction and magnitude of price changes (up or down) I am wondering how resourceful, worthwhile a buyer's agent can be...after all they charge a handsome 1-2% of purchase price, which can be anything from 8-18k depending on the price bracket (which begs the question of motivation for them to get a lower price for the buyer)!

Can anyone share their experiences, do's and don'ts, etc when it comes to deciding whether to use one of these or not...I am suspecting they represent more of the investor segment of the market but am keen to know if anyone has used one for the homeowner segment instead...

One obvious question is that of them having access to unlisted properties ie in good relationships with a set of preferred agents who maintain a portfolio of properties not being readily advertised that the everyday person may not see these in the press and various websites...ok so you may ask why would anyone agree to have their property unlisted....well humour me and consider this...despite constant press coverage of median prices having fallen since late 07/early 08, why is it that advertised prices don't seem to reflect this? For the seller, they want a right price so may hang on as long as possible as the momentum slowly moves from 500k to 700k price bracket and then from 700k to 900k and so on, on the back of the First Home Buyer's Grant-led momentum.

From a timing perspective it could prove to be worthwhile but at the same time with the financial year over and companies going to be reporting their results leading to potential higher unemployment into 2010, the recent mini-hike in activities could be the false positive that is being misread as the recovery...(of course there all sorts of other factors the will govern this) - question still remains what is the value for money when it comes to retaining a buyer's agent? How much more can the negotiate the price off compared to the average buyer eg on a 600k advertised price of a house, i as a buyer might feel confident of knocking off 10k...how much more would they be able to achieve? Of course this depends on condition, size, age, suburb, emotional attachment to property, negotiation power, etc and that there is no magic formula but if i am to believe their sales pitch (which can come across as very similar to an estate agent's!!!) then how come they are not known so widely?

Signed: the undecided potential buyer!

louie

We used a buyers' agent - Jacques Parker at House Search Australia - who has since posted occasionally on this website. However our situation was not the same as yours.... we were in the UK and we knew which property we wanted and how much we were prepared to pay, it was going to auction and we needed someone to bid for us. Jacques held our hand metaphorically speaking and we were pleased with the service she gave us.

Would I use an agent if I lived in the location I wanted to buy in, had time on my hands and had been researching prices in the area for some time? Probably not.

Why not find someone who specialises in the area you are looking in and ask them to explain to you why you should use them?

Geelong Gent

We use them when moving into a new market. Their independent information and contacts if you listen carefully is invaluable.

The cost is irrelevant when you compare to the cost of overpaying.

I think in this market recently they have served more to restrain buyers from paying too much (ie setting a price that once it goes beyound at auction you walk away).

We various plots of land, some in town some out of town some with properties on top some with out. But the brief to the agent was specific from an investment point of view. Quite often the agent would pay for his fee in bringing us away from emotive buys and back to our specific investment criteria.

From our experience we used them over 18 months and for every property bought the number evaluated was probably 6 to 10.

Just remember though that not all buyers agents are the same. Scrutinise their history - watch out for recent "real estate" agents turned buyers agent. They may claim to know how to get you the best deal but old habits die hard

Family of 3

We used Jordan Maclaren rom Hegney's in Perth. We were non resident and not PR at that stage so had to comply with FIRB etc. He found us a few new houses which we weren't keen on, and eventually found us some land at Burns Beach which we've now built on. It was invaluable for us as we were/are in Singapore and couldn't do the leg work ourselves.

Jacque

Hi there and especially to Louie

Yes a BA can be hugely beneficial when purchasing, whether or not you're local or 10,000 miles away. I've helped both types of clients now, to locate both the best property for their specific needs, and at a price that was often more than not less than what their maximum was. Too many benefits to list here, but take the time to read some BA sites and you'll understand why they're becoming more popular. Best of luck with your purchase no matter which way you go!