What value do Buyers Agents deliver?

We are often asked the question, “will I recoup the fee I pay from your negotiating power?”

The answer is, “maybe, but not necessarily.” It is almost impossible to measure.

We can’t simulate the same negotiation again with a DIY negotiator as the variable.

Consumers seek the services of a Buyers Agent for multiple reasons, including;

• a fear of getting the asset selection wrong,
• a fear of missing out on a special property,
• a reluctance to deal with selling agents,
• time restrictions or holiday/travel plans clashing with a campaign,
• an avoidance of auctions and auction bidding,
• a desire to get a sharper purchase result than they could achieve.

It is this last one that is sometimes a driver for prospective clients who contact us, and it would be unfair of any Buyers Agent to suggest that they could guarantee this result, particularly in a seller’s market. After all, we may be experienced property negotiators, but in the face of transparent competition, we can’t control other buyers. We can only outpace them with our due diligence and decision-making or intimidate them.

We can’t stop them from participating in a negotiation or limit their upper limit.

These are the limitations to our negotiating power.

What some buyers don’t place enough emphasis on are the intangible pre-negotiation measures, such as;

• deciphering agent-speak,
• establishing the facts, the rules of the negotiation, (yes, there are rules),
• determining a sensible price limit from a science-based approach,
• identifying any elements of the offer that could influence a vendor to accept their client’s offer,
• gleaning more information about the likely competition, (ie. strength of their last bidding effort, desired terms),
• assisting with conditions of the offer to either strengthen the buyer’s position, or add extra protection when they are vulnerable,
• conducting the most thorough due diligence in a short time frame to ensure that the property is exactly what the buyer thinks it is, from zoning to easements, covenants to special levies, and so on..),
• the Buyer’s Agent’s preparedness to be vocal when they don’t like the asset.

All of these elements, performed in tandem will deliver a buyer a significant negotiating advantage when their competition isn’t as well prepared, but despite this advantage, it still doesn’t ensure a win, a sharply negotiated price or a bargain buy.

A willing negotiator can outpace any price point if they are happy to pay a premium or have a higher budget to begin with.

What consumers should be asking of their Buyers Agent relates to the performance of the asset longer term, the suitability of the property based on their criterion and time frame, (eg. is the property future-proof?), and what perils will they avoid that they wouldn’t have known to look out for?

Our job is not only to assist with the acquisition of a suitable property that meets our client’s criterion, but to protect our clients from unforeseen issues that they may not be familiar with, (or privy to).

For example, our due diligence goes beyond a contract review and a building inspection. We check for nearby council applications and approvals, special levies for capital raising, courtyard leasehold arrangements, DHS ownership in strata blocks and neighbouring properties, parking restrictions on the street, among many other things.

Buyers Agency is an exciting, multi-faceted role and negotiation is just one important part in a sea of important tasks.