Buyers market presents need for buyers advocates
- August 1, 2012
- Ayda Shabanzadeh
A buyers market is set to create a demand for buyers advocates, working with the interests of the buyer, rather than the seller, in mind, according to leading Brisbane Property Investment Consultants, Grow Consulting Group.
Managing Director of Grow Consulting Group, Ayda Shabanzadeh, said a combination of falling interest rates and the significant reduction in stamp duty, saving buyers up to $7000, would result in increased buyer activity and enquiry.
“This will likely revert the market, from a buyers market – where buyers have strong negotiating power – to a seller’s market, with increased competition and multiple offers being place on properties.”
According to Ms Shabanzadeh, more buyers would start to show favour in working with registered buyers advocates, rather than real estate agents.
“A real estate agent works for the seller, who is their client. Their focus is therefore, on getting the best price for their client as possible. Incidentally, the higher the sale price achieved, the greater the commission the agent earns. As you can imagine, it is in the agent’s and his/her clients’ interests to achieve a sale for the highest price,” she said.
“On the other hand, a buyer’s advocate works on behalf of the buyer, achieving the best price and terms for the buyer as possible. They are experienced negotiators, and are comfortable with walking away if the price is too high or conditions not right because they have not formed an emotional connection to the property.”
Ms Shabanzadeh said that in many countries, including the United States, more buyers used the services of a buyers advocate to source and negotiate on a property on their behalf, rather than trying to do it by themselves.
“Property buyers and investors typically spend a great deal of time viewing a large number of properties that don’t meet their requirements. It is also easy to be persuaded to view, and even put down an offer, on a property that is missing important elements on the buyer’s wish list,” she said.
“It is also common for buyers with little negotiating skill and experience to have difficulty walking away from a property that is priced too high because they become emotionally attached, even if they don’t plan to live in the property.”
Ms Shabanzadeh said that good quality buyers advocates assist the buyer from the very start – from working out what your goals for the future are, taking into account your lifestyle and affordability, and then preparing a clear plan individually tailored for you.
“Once we know what sort of property will set you on the right path to achieve these goals, then the time comes to source the perfect property to help you achieve them. Looking for property and attending ‘open for inspections’ takes a lot of time – something that we don’t have a lot of today. We can save you all that time, by providing you with a list of properties that meet all of the criteria on your personalised home or investment requirement list, and have already been viewed by us.”
“A great deal of the property we view is not publically listed, and include private and silent sales and pre-public release development projects. You can be sure that what we present to you has been thoroughly researched as to its growth potential and market potential. We continually conduct research into market conditions for the benefit of our clients.”
According to Ms Shabanzadeh, good buyers advocates also assist with securing finance, preparing contract documents and property management too.