The decade-old “new kids on the block”

Document Sample
The decade-old “new kids on the block” Powered By Docstoc
       August 2009

                       Exclusively available to members of The Real Estate Institute of Queensland

   The decade-old “new kids on the block”

                     Managing your cash flow to survive & thrive
                     Rental returns remain steady
                     Crack down on unlicensed operators
8     Feature

                   Meighan Hetherington
                                                                           The decade-old
    Buyers’ agents may have been a part of the                        a buyers’ agent’s sole purpose is to help people find the
                                                                      perfect home or investment at the best possible price. this
    Queensland real estate landscape for a decade                     type of service – which is available for a fee – is particularly
                                                                      popular with time-poor local, interstate and overseas buyers.
    but they are still a little understood part of the
                                                                      and while buyers’ agents are becoming increasingly popular
    industry. Indeed it is only now – many years                      in the marketplace, according to 2009 REIQ Buyers agent of
    later – that these new kids on the block are being                the Year meighan Hetherington, the wider industry has yet to
                                                                      fully understand their role.
    accepted as a viable part of the property game.                   “a buyers’ agent’s independence is their most valuable asset,”
    Buyers’ agents are independent licensed real estate               she said.
    professionals who provide advice and guidance to people who       “It is vitally important for buyers to understand that it is illegal for any
    may be at the start of their property purchase road, or who may   agent to financially benefit from both sides of a single transaction.
    have done so much research they have come to a dead-end.
                                                                      “so we represent the buyer, who pays us a fee that cannot be

REIQ Journal August 2009
                                                                                                               Feature                      9

“new kids on the block”                                                                                                Scott McGeever
 By Nicola McDougall, Deputy Editor, REIQ Journal

 more than the maximum commission rates regulated under            Long-standing Brisbane buyers’ agent scott mcGeever said
 the Property agents and motor Dealers act (PamD act).”            the next step in the process is for the buyers’ agent to take a
 and just like everyone else working in the industry, buyers’      selection of properties back to their client and provide advice
 agents must be licensed under the PamD act and must be            on which ones may suit their purpose.
 appointed via a PamD form 22a appointment of Real Estate          “Communication and feedback are the keys – especially if the
 agent, which outlines the service agreement and all terms         buyer is from interstate or overseas,” he said.
 and conditions.                                                   “If someone is looking for a new home, they are often also
 “once we have been legally appointed to act on their behalf,      seeking advice on what a particular area is like – its infrastructure,
 we contact agents that have properties matching the buyers’       such as schools, or if it has an entertainment precinct.
 specifications and attend inspections on their behalf,” ms        “Investors require an understanding of the demographics,
 Hetherington said.                                                yields and returns achievable in particular suburbs.
 “often we are able to eliminate a lot of prospective properties   “once a perfect match is found, we can negotiate with
 at our desk by using data providers, resources and a thorough     the selling agent on our clients’ behalf to help achieve the
 understanding of our clients’ brief.”                             best possible price. We can even take care of most of the
                                                                   paperwork for them.

                                                                                                                       REIQ Journal August 2009

      “Essentially, our job is to make sure our clients can buy the right
      property at the best price by using a lot of reliable information
      and advice.”
      Ray White Paddington principal George Hagdelias admits he was
      sceptical about buyers’ agents when they first came on the scene.
      and it was a misguided attitude he has now changed.
      “In all honesty, when I first heard about buyers’ agents I didn’t really
      believe they had a place in the industry. I thought their working with
      buyers would be in conflict with my working with sellers,” he said.
      “However, as time evolved and I worked with different buyers
      agents – as long as you understand they represent the buyer – it
      didn’t compromise my position.
      “What I found was that buyers’ agents were well-educated in
      relation to the market, their offers were fair and reasonable, and
      they took away that fear of negotiation whether the sale was by
      auction or by private treaty.
      “they made the process of sale a little bit more stream-lined.”
      George has changed his tune so much that he recently
      recommended that a friend who was buying interstate use a
      buyers’ agent.
       “that gave him a little bit more awareness of what was happening
      in that marketplace.”
      Indeed, buyers’ agents are equally popular with time-poor local residents
      or people shifting to Queensland from interstate and overseas.              …buyers’ agents were
      new Brisbane residents Kate and Chris salisbury used a buyers’              well-educated in relation
      agent when they relocated here earlier this year.
                                                                                  to the market, their
      “It was easier to use a service like this to help sort through
      properties when we were so far away,” ms salisbury said.
                                                                                  offers were fair and
      she said the most valuable aspects of the process this time
                                                                                  reasonable, and they
      included the flexibility in the length of the contract in case their        took away that fear of
      circumstances changed and the process had to be slowed down                 negotiation whether the
      or sped up.
                                                                                  sale was by auction or by
      “and with our particular agent, she had access to properties not yet
      listed, an enormous knowledge base of the area we were looking,             private treaty.
      contacts within the industry, and an objective view,” she said. 
      “once the property is found, having a non-emotive person to
      advise on the best strategy and do the negotiation, and also
      following through to completion, takes a lot of stress and angst out
      of the process along with also providing financial benefit.”
      ms salisbury has bought two properties through buyers’ agents
      – one for investment and one for her and her husband to live in–
      and both have been successful transactions.
      “a good agent has excellent contacts and knowledge of the areas
      that takes years to gain – as a client you get the benefit of that
      without the hard work,” she said. 
      “Buying is often emotional and very stressful – both those issues
      are mitigated by using a good agent who is always objective and
      offers another set of eyes. It can save you a lot of money, and not
      only on the list price of a property. 
      “In our experience the cost of the buyers’ agent has been worth it.”

REIQ Journal August 2009

Shared By:
Description: The decade-old “new kids on the block”