 | "Successfully purchasing a property without viewing it beforehand is dependent on the level of trust you have in the buyer’s advocate you have engaged." |
When buying an investment property unseen, trusting your buyer's agent is essential
By
Cameron Deal
Purchasing a property is one of the biggest financial commitments you’re likely to make in your lifetime. Only certain properties should be bought without you seeing them first. I recommend that those looking for a new home to live in themselves should see the property in question before making an offer. However, purchasing investment property can often be done without the buyer seeing the property at all. Successfully purchasing a property without viewing it beforehand is dependent on the level of trust you have in the buyer’s advocate you have engaged. When presenting a property to a client, I provide them with a detailed report that includes historical growth patterns and market value for properties within that specific area. We also provide detail on land size, orientation and comparable sales evidence of similar properties. When engaging someone to act on your behalf it’s important you’re confident that they’re acting in your best interests. It’s imperative that they have extensive knowledge and experience in the property industry. This ensures that they are well across property market in the area that you’re looking to invest in. Three important factors to consider when selecting someone to purchase property on your behalf: 1. Experience Certification and experience provide a base for grounding and trust. Look at a buyer’s agent’s history; has he or she had experience in the property industry? Working in a variety of roles in the property industry enables a multifaceted understanding of the property market. If your buyer’s advocate is also a licensed real estate agent, he or she will be familiar with selling techniques, growth patterns and auction clearance history. Industry experience is integral to an ability to build relationships. 2. Industry relationships Pre-existing relationships with real estate agents enables buyers’ advocates to unearth properties that are yet to be advertised to the wider market and present them to their clients. 3. Set fee vs. percentage of the purchase price Engaging professionals to act on your behalf will take the stress and complication out of purchasing property. When engaging a company, look at whether its fees are based on a percentage of the final purchase price or whether they’re set from the beginning. It’s important that you can be confident your advocate has your best interests at heart and won’t be making more money should he or she recommend a more expensive property. Cameron Deal is senior buyer advocate at Infolio Property. For advice on buying your first investment property, download our free eBook. |
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Leave a Comment
written by pseisums@hotmail.com, December 21, 2011
Caveat Emptor does not just apply to real property. I cannot even begin to imagine purchasing a property 'site unseen', investment or owner occupied. This is setting up for absolute disaster and I don't care who it is, how experienced, certification, industry relations etc etc Buyers Agents generally only get paid when they, hello, buy! Which brings up many issues, ethical, moral and otherwise.
This reads like an 'advertorial' and to be honest, has absolutely no place in 'Property Observer'. In my opinion this discredits the very thing you are building, a periodical based on facts and statistics....
written by Matthew Ross, December 21, 2011
There is nothing unethical or immoral about the services a buyers advocate offer. Anyone who is investing $500,000 + into one investment that doesn't seek independent, objective advice from an expert has disaster written all over it (unless you're very experienced or have lots of time on your hands to do the job properly).
Not enough people understand the value of paying someone to help you find an investment property so this isn't out of place on this website. Smart investing is about maximising the probability of a successful experience and engaging an expert who knows more than you, removes the emotion, negotiates better than you and means you can spend more time with you family after hours and on Saturday mornings is a very smart thing to CONSIDER.
Awareness of the service offered needs to increase. As far as not seeing the property; Google maps is pretty awesome so it'd be pretty rare that someone wouldn't want to see what is they are investing into; even if they are based over the other side of the world. I'd want to see the tree lined street, see how much land is being purchased, see the architecture, natural light (bunch of factors most people wouldn't even consider contribute to a good growth rate).
There are plenty of Aussies over in London being convinced to buy off the plan garbage in Docklands who don't get to see anything more than impressive graphics before they purchase! How much are they paying in fees? Zero. Because commissions are involved.
You pay a fee to a buyers advocate; so they're on your side.