From my experience in growing my network of Property Mavens, I know there are many misconceptions around the role of the buyer’s agent. These views are held not only by potential buyers but also by many real estate agents and mortgage brokers who are considering making the switch to becoming a buyer’s agent. In this article, I’ve tried to give you a better buyer agent role description.
Five common myths around the buyer’s agent role
- I can start being a buyer’s agent part-time as a side hustle
You might think you can but if you currently have a full-time job, you won’t have the time to devote to doing the great job for your client that they are paying you to do. Frequently, you’ll need to work six days to inspect and analyse properties, to do some digging into council matters, and to consult with your clients. Unless you go through all the processes, you won’t achieve your client’s property goals. That means they won’t recommend you to friends and family, which would be disastrous to your career. You’ll soon learn that great service and excellent testimonials go a long way to growing your business.
- I don’t need any resources except a laptop to be a buyer’s agent
To be efficient so you can make money and build your reputation, you need significant systems and processes to fulfill your role. And while you may believe that you can transpose real estate agency systems and processes to your new venture, you could be in for a nasty surprise. (Can I offer a few words of advice here? Starting from scratch is not easy, and it’s expensive if you want to get it right.)
- I don’t need to find the right property, just one the client likes
Your role as a buyer’s agent is to protect your client’s interests. That means talking them out of something they’ve fallen in love with but isn’t appropriate or won’t help them achieve their property and life goals. More than once I’ve jeopardised a relationship because it was clear to me that my client was chasing a dream that didn’t correspond with their budget or long-term goals. Yes, it can be uncomfortable but that’s what you’re there for: to protect their interests and, in some cases, protect them from making bad choices.
- Buyers’ agents pay too much for properties
As buyers’ agents, many of us have come from a real estate sales background or mortgage broking career. We are skilled negotiators, we have a broad market knowledge and, above all, we’re protecting our client’s interest in any purchase. That must include not overpaying for property.
- Buyers’ agents can turn over clients quickly
Very occasionally you can; however, most you can’t. How long will it take to find the right property for your client? This is not a question you can answer as it might be two weeks or twelve months or even longer. It’s all about finding the right property, not treating your client as another transaction.
The truth about being a buyer’s agent
This is where I get into the nitty-gritty about being a buyer’s agent.
Importantly, we are responsible for the calibre of assets we recommend and buy for investors and homeowners. We manage the buying process and usually provide our clients with a buying brief.
To summarise: The role of a buyer’s agent is to:
– Ensure our clients don’t make a property-buying mistake.
– Manage all third parties.
– Source the property and dismiss what does not meet the brief.
– Assess and analyse if a property is the right one.
– Provide supporting evidence of why that is.
– Appraise the price.
– Negotiate with the agents.
– Attend auctions to buy.
– Counsel buyers on a multitude of issues while managing their anxiety and fear to help them secure an outcome for fair market value.
We have to manage all the above as those activities fall under our role.
If we miss out, we repeat the process until we buy. And all this is covered under the same fee.
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