Why you need a Buyers Agent
In the real estate world - which is more like a real estate jungle - property buyers have few friends. While you may be happy to make an offer on a home or bid at auction by yourself, do you really know what a property is worth? Many buyers think if they can get any reduction from the asking price they are master negotiators. This can be a costly mistake. Let me explain . . .
When someone decides to sell their property, generally the first thing they do is start ringing real estate agents to get a few appraisals. The agents know they are competing against one another to win the listing and the home seller is usually only interested in two things: how much can you get me for my home and how much do you charge?
Many times the agent that quotes the highest potential list price is the one that wins the listing. While it is true that agents must justify their appraisal price and they do this by comparing what similar properties have sold for, it is a little bit like comparing used cars. Just because one car is about the same age as another and looks similar on the outside, doesn’t mean that they are worth the same on the open market. There may be vast differences in mileage, condition and added extras. The same is true for properties. You have to make sure you are comparing apples with apples.
The agent usually quotes the seller a price range in which they believe the property should sell. Then the opening list or asking price has to be worked out. This has no real bearing on the price range the agent believes the property should sell for. The list price may have what is commonly called ‘room for negotiation’ added on by the agent, or it may be the price the seller ‘needs’ to get before they will sell. There are many sellers out there who will only sell if they get ‘their price’ which has no real relationship with what the property is worth.
Many buyers walk straight into this minefield of pricing and think if they can get a $5000 reduction from the asking price then it’s a great deal. They have no real idea of the true market value of the property. Then there are other factors which many buyers never think about or investigate. What is the area really like? What are the neighbours like? How long has the property been for sale? Why are they selling?
A Buyers Agent specialises in buying property. Buying a property is one of the most significant decisions you will ever make. This decision may only be made a few times in a lifetime and can involve a significant amount of time, money and emotion. It is simply too important not to engage professional help!
Currently the majority of buyers go directly to a real estate agent for advice, however these selling agents are engaged by the vendor and may not act in the buyers best interests. At Home Buyers Advantage we represent you, the buyer, in devising and implementing appropriate strategies and tactics to successfully purchase a particular or suitable property at the best possible purchase price.
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