How Buyer's Agents Help Investors Maximize Property Gains

Whether you buy a property for the first time or plan to expand your real estate portfolio as an investor, you aim to get the best return on investment . However, finding the best return on investment in the evolving real estate landscape has always been challenging for property buyers. According to the 2024 State of Real Estate Report, 25% of real estate investors investing without professional guidance experience less-than-optimal satisfaction. Certainly, you wouldn’t like to be one of the 25% unsatisfied investors; here comes the buyer's agent role. The following case of 2023 may help you understand the importance of a buyer's agent in real estate investment decisions-

“Ananthan, a first time property investor , hired Property Frameworks to help him buy his first investment property. Property Framework identified a promising property in South East Perth which had not been listed on the market. Property framework secured the property at around $20,000 lesser than what similar properties in the region were selling for. Within a year, the property appreciates by more than 20 % providing significant capital growth and rental yield. For Ananthan, the fee paid to the Property Frameworks is a justified investment that was almost impossible otherwise.”

Increasing Importance of Buyer's Agents for Australian Real Estate Investors

Buyers’ agencies have become more important in the real estate industry than ever before because of playing an increasingly vital role in seamless property transactions. As the property market is getting intensely complex and competitive, experienced buyer's agents deliver distinct advantages to buyers by managing the entire process. Here, I list some convincing driving forces that make hiring a buyer's agent imperative for investors:

Preference to Have Personalised Professional Services: A majority of buyers prefer having tailored guidance throughout the property-buying process . Customized support helps buyers make informed decisions.

Increase in Off-Market Transactions: Off-market transactions for buying properties that are not publicly advertised are increasing. Buyers agents generally have access to OFF market properties helping you secure the deal with less competition.

Adoption of Data-Driven Technology in Real Estate: The use of technology and data-driven tools to refine property searches improves buyers’ experience and enables identification of markets poised for growth.

Roles & Responsibilities of a Buyer's Agent to Streamline and Secure the Investment

When you pay a price for hiring a buyer's agent, you should know the scope of duties to justify the hiring cost-

Formulating an investment plan : This is the first step which involves discussing your long term goals and formulating a plan on how it could be achieved.

Identifying high growth areas: Based on your requirements the agent will identify markets that suit your requirements and long term goals.

Searching for listings in line with your selection parameters: A buyer’s agent understands the client’s needs and preferences. Based on your selection parameters, a buyer's agent searches the appropriate properties across the different channels.

Pricing consultation: The buyer's agent helps you determine the right price for a property. The buyer’s agent usually asks the listing agent about disclosures that can affect the pricing and desirability of that property. The agent conducts a comparative market analysis of almost similar properties using advanced AI-driven tools to determine the last right offering price for each property.

Price negotiation: The buyer’s agent negotiates for price and terms on behalf of buyers to get the best deal.

Using networking of real estate agents: The buyer’s agent uses his network to expedite the buying process because delay in investment often impacts the return on investment.

Should You Hire a Buyer's Agent to Make Your Investment More Promising? 11 Advantages of Hiring a Buyer’s Agent

Purchasing property can be a complex and daunting task for those who are new to the real estate market, have limited connections in the real estate market, or have limited time to explore the best ‘properties for sale’ offers. A buyer agency understands the intricacies of the Australian property market and uses its expertise to maximize your return on investment (ROI). Here, I list eleven compelling advantages of hiring a buyer’s agent when investing in property purchase –

1. Expert market knowledge

2. Expert insights for investment strategy formulation

3. Access to off-market properties

4. Help to explore properties in unfamiliar territories

5. Due diligence

6. Time-saving

7. Professional negotiation skills

8. Objective-oriented expert advice

9. Personalized property search

10. Stress reduction

11. Protection against costly mistakes

    
    

Seven Check-Boxes -How to Hire the Best Buyer’s Agent? What You Should Look for In the Profile of a Buyer’s Agent

You need to discuss fees upfront with the selected agent to ensure transparency and have a clear understanding of the financial arrangement prior to the start of services. The following list of seven check-boxes may help you hire the best buyer's agent in your area:

• Does the buyer’s agent have access to “off-market listings’ or ‘off-market sales’”?

• Does the buyer’s agent understand the data trends around the area that you are looking to invest?

• Does the buyer’s agent have a network to find the property of your choice in a reasonable period?

• Does the buyer’s agent have past clients that they can refer to?

• Does the buyer’s agent have some success stories related to the particular area you are interested in?

• Does the initial communication and meeting with the buyer's agent convince and impress you?

• Is the shared strategy and workflow convenient for you?