I was recently asked by a potential client, why should he use the services of a buyers agent as the real estate agent was handing out comparable sales at the inspection. He was also aware that he could actually go and buy a report of all the latest comparable sales for less than one hundred dollars by one of the major companies selling property data. 

Clearly this person and most probably many others do not fully understand how to evaluate and confirm wholesale data and this is where using a professional buyers agent, makes a world of difference.

I have outlined below two examples where property prices up to 20% below should be analysed as part of your due diligence and should not be ignored but rather reviewed in context.

Example 1

The first thing you should keep in mind is that we appreciate the professionalism of the real estate agents that take the time and effort to produce a list of comparable sales to hand out to prospective buyers and ourselves. In a very isolated incident, I went to inspect a property on behalf of a client of mine and was handed out a sheet of comparable sales by the real estate agent. I checked the comparable sales against the list prepared in my due diligence for my client and immediately picked up there was a very recent sale in the street, on the same side of the block, on an identical block size, within the previous two months, missing from this list.

When the agent called me on Monday to follow up, I asked him about the missing property.  The agent’s response was that because the property was purchased well under value they did not feel it was a comparable sale. I had been the actual buyer on behalf of the client of the property that was missing on the list, and knew all the circumstances surrounding the sale. Having said that, the price is the price it should have been included as a comparable sale.

I’m not sure if this was a one-off incident, or if this occurs on a regular basis. Nonetheless there is still a lot that goes into producing a very thorough appraisal than just looking at comparable sales prices.

Example 2

In another example a property was sold relatively low to the comparable sales in the block. The average single home was valued around $930,000 at the time this property sold for $780,000 at auction. Unless one understood about the actual structure of the improvements on the land as well as the condition the property was in, one would assume that it was a very low price and would consciously think that the property market in this particular area was moving southwards. In this particular instance the main difference was that this was the only property that was built at an angle to the block and one corner of the house was actually touching the boundary. Because of this it was impractical to renovate or add an addition to the house, and to improve the property meant the house had to be knocked down.

Only further research into the property or an actual visit to the property would have given a very clear idea of why this property sold for less. Taking this property’s price into account when looking at other offers on a property for sale in the street might get you to actually undervalue a property you might be interested in, and hence miss out on a great buy.

Summary

In a summary what you get from a buyers agent is far more then a list of comparable sales and should include significant other information including not limited to:

• ·       Heritage status of the property
• ·       Development activity of surrounding properties that could affect you living in the property or renting it out and may have a log-term effect on the price.
  
• ·       The risk of a unit block to built next door to the property.

We have seen many potential buyers making drastic mistakes because they were convinced the comparable sales were enough to make a realistic offer. In hindsight most of these buyers realised that their mistakes had cost them a lot more than the cost of hiring a professional independent Buyers Agent.

Please feel free to contact us for an obligation free consultation if you would like to find out more about our services.

In a recent article in the SMH by Michael Pascoe http://t.co/Qsxuk9M he highlights the language used by real estate agents in marketing of properties and attempts to define what it actually means. I believe this article would touch a certain nerve for most Buyers Agents as this is what we face all day and still have to try and explain to our buyers why they cannot purchase the property at an advertised for sale price. There are far too many reasons to discuss however I have made a few of my own observations based on the article.

As a buyers agent in Sydney, I generally don't pay too much attention to the advertised price even instructing my buyers that they must totally ignore anything they read.

In most cases my first call to the agent will dispel any myths about what the ACTUAL ASKING PRICE IS. Most agents I deal with are much more open and honest when dealing with me or many of my colleagues in the industry.

I have actually bought a property at auction where the so called quoted price was around $1m to $1.1m and the property sold for $1.52m.  Right through the campaign my advice to my buyers was that the property would sell well in excess of $1.45m. This is why we were successful on auction day, because we were prepared and had non emotional knowledge.

Unfortunately for most real estate agents, the vendors do NOT want to hear the truth about their property and what it is worth, not until there is a failed sales or auction campaign. In many instances our thorough market and property appraisals are used by agents to condition the vendor to an eventual realistic sales price.

One common myth shared by a lot of vendors is that they believe that all Buyers gents want to STEAL the property and that any offer we make is well below what they think it is worth. Contrary to this common myth, we have the knowledge and intelligence to offer right at the beginning of a campaign what is calculated as a very fair market price that could actually save the vendor a lot of unnecessary stress and anguish.

Through mu years in this field I have had many good offers rejected only to find that agent calling me back many weeks later asking if I will make another offer close to what I previously had. More than likely we would have moved on and bought elsewhere.

At a recent auction of two very close friends and buyers agents, there were 4 bidders, 3 of whom were Buyers Agents. This is the new reality and vendors need to be educated far better when agents are prospecting listings about the potential sale being through a buyers agent

Prestige Property Finders offer Buyers Agent services throughout Sydney and Australia. Using an accredited real estate Buyers Agent to find the best property in the most suitable location at the best price. Buyers Agents, Buyers Advocates or Property Finders, find, research, appraise or bid on your home or investment property. There is no need to look further for your Sydney Buyers Agent.

Are you tired of fighting with other owners over Body Corporate issues? Do you feel like you don't know who your neighbours are even though you have lived in a complex for years? Well why not take the issues into your own hands.

A simple fact…most strata complaints come from lack of communication.

In April 2010, a concerned tenant in the Signature Apartments started a Facebook site – initially as a means of providing residents an opportunity to get to know each other and to improve communications and hence the overall conditions and effective running of the body corporate. Advertising the site was simple. Once the site was set up, a small poster was placed on the notice board in addition to placing a leaflet in each and every post box.

The main aim of the site is to:

• get to know other tenants and form friendships within the building
• sell or recycle any unwanted furniture, clothing, unwanted theater / movie tickets, etc among the members (why pay to advertise when there may be interested people right next to you)
• advertise their skills and businesses
• inform others about the latest events in the local area, surrounding areas or in the building.
• post ideas and general information on  home decor tips (units have similar layouts), how to save on energy and referrals to recommended local trades such as plumbers, electricians etc.

The site is now taken on a life of its own and has evolved significantly to be used by the executive committee to communicate and explore new ideas with other owners and residents. One of the direct advantages is that if you sell any white goods withing the complex, you don't need additional transport for example.

As a Sydney Buyers Agent, this proactive approach is attractive to us (assuming everything else stacks up). Four our interstate and overseas investment buyers, this would mean that they have an additional method on keeping a closer eye on their investment – all done remotely.

http://www.facebook.com/SignatureApartments

Prestige Property Finders offer Buyers Agent services throughout Sydney and Australia. Using an accredited real estate Buyers Agent to find the best property in the most suitable location at the best price. Buyers Agents, Buyers Advocates or Property Finders, find, research, appraise or bid on your home or investment property. There is no need to look further for your Sydney Buyers Agent.

Buyer's Agents are licensed real estate professionals that only represent a buyer in a property transaction. In most cases they are employed to search, evaluate and negotiate the purchase of property on behalf of the buyer.

1. We find research and match the perfect property
2. Professional due diligence and appraisals are done
3. We handle all the negotiations to get you the best deal
4. Take far less time to find the property
5. Save you time and remove all stress
6. Save you money by knowing the right price to pay
7. Uncover a world of 'Silent & Off Market' properties
8. Buy Sydney property whilst overseas with confidence
9. Build your property investment portfolio wisely with less risk
10. We get you into your dream home sooner