Making the right commercial property investment may seem like a daunting task, but having a pro in the field by your side certainly helps.
Property ownership comes with many perks, but before you are able to reap its rewards, you’ll have to go through an extensive process that is property purchase. Given how this buying process requires a considerable amount of knowledge about the market as well as some property investment know-how, such an undertaking can seem quite demanding to say the least. Enter the licensed real estate professionals – buyer’s agents. With their legal expertise and negotiating skills, buyer’s agents can provide buyers with professional guidance, thus taking the stress out of the equation. If working with a professional buyer’s agent is on your agenda, here’s what you need to know before hiring one.
How does a buyer’s agency work?
Let’s start by explaining the role of buyer’s agents and why there’s the need for them. Sometimes referred to as buyer’s advocates, buyer’s agents are licensed real estate professionals who are hired to act on their client’s behalf when purchasing a property. They handle the research, evaluation, as well as the negotiations that follow property purchase. In the real estate transactions, buyer’s agents represent the interests of the buyer, and there are two main services they can offer to their clients. They can either perform full service, meaning that they will be assisting the buyer from start to finish (that includes negotiations, bidding, and property search), or they can be hired for auction bidding only, in which case the agent will only bid on the property that the buyer has selected on their own.
What are the responsibilities of the buyer’s agents?
Depending on the buyer’s agent you select, they will offer you help with different aspects of property purchase. Generally speaking, a buyer’s agent should be able to help you with property assessment, where they will perform an evaluation of the property in terms of zoning and location as well as provide you with the property’s history and the property’s resale potential. A buyer’s agent you hire should also help you determine your maximum budget by relying on basic financial information. They also need to make sure you’re familiar with any additional costs that may not be noticeable to you right away. This could be anything from cosmetic repairs to permits to structural issues and is easily determined through property inspection. In this case, the repair costs can be covered by the previous owner. Finally, your agent should provide you with an exit strategy, in which case they’ll advise you on when and for how much you should sell the property.
What are the benefits of hiring buyer’s agents?
Aside from the reduced stress, objective view, and time savings, there are a number of other benefits that come with turning to professionals when purchasing a property. In fact, asking for professional help is not uncommon in places such as Australia where many investors are intimidated to enter the property market without relying on experts. With its two major cities and business hotspots, Melbourne and Sydney, ranking high up on the viable locations in the country, it’s no wonder that hiring buyers agents in Sydney has become a standard among commercial property investors as a way of ensuring professional negotiation. Buyer’s agents are also beneficial for investors because of the expert insights that allow them to locate the best properties that match clients’ capital growth expectations while also making sure that those properties fit their budget. Finally, given buyer’s agents’ professional, candid opinions and impeccable negotiation and auction skills, buyers can rest assured that their investments will be strategic.
How do I find a good buyer’s agent?
Given the number of buyer’s agents available, finding the right one can be tough. In case you’re hiring a buyer’s agent in Australia, checking whether they’re members of an association such as REBAA is a good place to start. This is important because you want your buyer’s agent to be licensed by the state to work as a real estate agent. Therefore, make sure you do thorough research about who you choose to hire. Also, for the agent to be able to meet all of your expectations, you have to be very specific with your property purchase goals and objectives. This includes details about the type and location of the property, certain preferences, as well as your budget.
What do I need to consider when selecting a buyer’s agent?
Other than ensuring they’re licensed professionals and that they’re able to meet your goals, there are also some other things you need to consider when selecting a buyer’s agent. Once you’ve made a shortlist of real estate pros, you want to narrow down your options by asking a couple of questions. This includes asking about the agent’s experience, their fee structure, if they’ve got professional indemnity insurance as well as whether they sell properties in addition to being buyer’s agents. Be sure to ask about their previous purchases and whether you can contact those clients. If they decline your request, consider that a red flag.
Making the right commercial property investment may seem like a daunting task, but having a pro in the field by your side certainly helps. By relying on buyer’s agents, you can navigate the complex commercial property market more easily while making sure that you’re getting your hands on the best deals as well as getting the most out of your investment.
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