There are several reasons as to why you should engage a buyer’s agent to help you find and negotiate the acquisition of your next investment property.
- Saves you time
Buying an investment property is extremely time consuming as it requires thorough market research, attending homes opens, due diligence and extensive negotiations with sales agents. A buyer’s agent will complete all these time-consuming jobs on your behalf, allowing you to take back your weekends and enjoy your spare time with family, friends and your interests and hobbies.
- Saves you stress
Buying an investment property is very stressful. Most people are busy with commitments to family, friends and hobbies so it can become very overwhelming to take on the task of trying to find an investment property that suits your personal circumstances and strategy. Because a buyer’s agent will manage the entire process for you, you’ll avoid the extensive work required and associated stress. Furthermore, given that buying an investment property is one of the largest financial decisions you’ll make in your lifetime, stress levels can be compounded. By engaging a buyer’s agent, you’ll be more emotionally detached from the process, which will help your mental state.
- Saves you making mistakes (i.e. saves you from yourself)
Anyone with the financial means can buy an investment property, however it’s much more difficult to find an investment property that suits your strategy and will outperform the market. A professional buyer’s agent will be able to help you to determine your investment strategy and identify the types of assets that will best suit your circumstances (i.e. cash-flow requirements, risk profile, investment goals etc.). By acquiring an investment property that doesn’t align to your strategy or needs, you risk making costly errors, such as buying the wrong type of asset. This means you might end up with a property that’s a financial black hole or an underperforming property. Furthermore, a good buyer’s agent will also complete thorough due diligence and help mitigate risks that could prove costly in the future, whether that be identifying structural defects, easements or undesirable covenants, among other issues.
- Saves you money
A good buyer’s agent will operate on a fee-for-service model (i.e. they will charge you for their services to research, find and negotiate the acquisition of an investment property on your behalf). While the amount they charge will vary from company-to-company, it’s important to understand the value that they provide. Not only are they saving you time and stress as well as helping you avoid mistakes, a good buyer’s agent will also be able to save you money by negotiating the best price and terms of contract for you. Therefore, while it will cost you to utilise a buyer’s agent, it’s likely that they will be able to negotiate a better outcome (including purchase price and conditions) compared to the ordinary investor.
Not all properties will perform the same, so a good buyer’s agent will be able to help identify those that will outperform the market, mitigate associated risks and secure the property for the best possible terms.
As an added bonus for investors, the fees charged by a buyer’s agent form part of the purchase price for capital gains purposes, reducing your tax on disposal.
Like any industry, the quality of a buyer’s agent can vary from company to company, so ensure you engage a buyer’s agent that has a strong track record.