Why use a buyer’s agent?

Of course you can buy property without assistance, but the vendor is represented so why shouldn’t you be?

We can demystify “agent speak” and give you clear guidance.
It’s hard to know what to believe and what not to. Believe it or not, selling agents don’t know when to believe buyers either. We can cut through all this confusion and be your credible source of information.

Give yourself a competitive edge in a sellers’ market.
We know what tactics to use and how to time offers to minimize the risk of competing with other buyers.

We can recognize potential in a property that you can’t.
Buyers these days are used to seeing well presented property and often can’t see a diamond in the rough. Our experience allows us to quickly see opportunities that aren’t obvious – this is where people make money in property.

We can recognize a lemon when you can’t.
We have been involved in buying and selling property though good markets and bad. At the moment, everything is selling, however the market will return to normal and we can help you avoid purchasing a property that would be difficult to sell in a buyers’ market.

Finally, we give you the confidence that your final decision is the right one and that you are paying the right price.

For more information on buying property in Sydney go to www.gooddeeds.com.au

Real estate buying stages.

Trying to buy a property in a sellers’ market is no walk in the park. We meet buyers at all stages of the purchase cycle – do you recognize yourself in this list?

1. Optimism – this is fun, you are excited, and nice to selling agents
2. Disappointment – first auction goes 20% over what you thought it would sell for
3. Disbelief – at what people continue to pay
4. Anger – at selling agents for under-quoting, at other buyers for over-paying
5. Resentment – you pack up your toys and stop playing for a while
6. Resignation – that the market is continuing to rise despite your lack of participation, you still want to buy after all
7. Desperation – you try to talk yourself into anything just to get into the property ladder and get your Saturdays (and sanity) back
8. Wisdom – learn from your mistakes and/or get expert help!

For more information on buying real estate in Sydney go to www.gooddeeds.com.au.

Is the Sydney property market about to turn?

Frustrated buyers are waiting for the market to slow down and after this week’s interest rate rise (the 6th since September 2009) we are asking the question – what will be the tipping point?

We are seeing a few indications that the property market may be starting to cool.

• Firstly, an article in last Saturday’s Sydney Morning Herald said that there are a record number of auction listings this month. More listings means that buyers have more choice and more choice usually means less competition, which in turn means lower prices.

• I went to another Westpac briefing yesterday and they are seeing the first stages of a drop in consumer sentiment. If buyers are not confident in their own financial security they will begin to act with more caution.

• Anecdotal evidence from agents selling property in outer areas of Sydney is that things have cooled in the lower price bracket. Since the first home buyer segment lead the current real estate charge it only stands to reason that it should also lead a slow-down.

Having said all this, we are heading into a winter market, where low stock levels traditionally result in heightened buyer demand and continued price growth. So the tipping point may be delayed until spring is upon us.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Common mistakes by real estate buyers.

Many of our clients come to us after a string of disastrous attempts to navigate the property market themselves. Here are some examples of common mistakes that we come across.

• Giving the selling agent too much information. Putting you at a disadvantage when negotiating.
• Not giving the selling agent enough information. How many people have missed out on a property because the agent did not know they were interested? The art is in knowing what to say and when.
• Panic in a rising market and buy foolishly. As Louis Christopher said last week, “Remember lemons are very hard to sell in bad markets." But we see plenty of them selling at the moment.
• Panic in a rising market and don’t buy at all. Of course the market will level off at some stage, but how much will prices rise before that happens?
• Keep increasing their offer without a counter-offer from the vendor. This is not the way to negotiate with an unrealistic vendor.
• Leave too much time between getting an offer accepted and being ready to exchange contracts. And leaving the door open for another buyer to snap it up.
• Allow the auctioneer to create a rhythm. Before you know it you have bid over your limit.
• Let the fact that other people are bidding confirm what the property is “worth”. Instead of doing your own research.
• Believe what the agent is quoting for a property. Buyers largely determine what property sells for in this market and there aren’t many that tell the agent what they are prepared to spend.

There are many pitfalls for the unwary and the weary. And it is so easy to get caught up in the general frenzy and lose sight of what represents value for you.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Why we recommend property investors engage a managing agent.

I could manage my own investment properties but choose not to. The reason is that tenants have a whole bunch of rights and landlords have a whole bunch of obligations that most are probably not even aware of. So, a good property manager can help keep you out of tribunal (or represent you if necessary) and ensure that your interests are protected at the same time. It’s not just money for jam…

Also, even though I have often lined up my own tenants, I always pass the management onto an agent so that I can keep at arms length. I am busy working in my own area of expertise and don’t want to be bogged down with tenant issues (sometimes there can be plenty).

And talk to your accountant, as management fees should be tax deductable. You can also get all the bills directed to the agent and get one annual statement which you just pass onto your accountant. Simple!

For more information on buying an investment property in Sydney go to www.gooddeeds.com.au.

Who uses a buyer’s agent?

Many people think that it is only the rich who engage the services of a buyers’ agent.

Our client statistics show that the reality is vastly different to what you may think.
• 74% have a budget under $1 million.
• 71% are owner occupiers.
• 81% live in Sydney.

The reasons people may choose to use a buyers’ agent include:
• Being time poor
• Recognizing a knowledge deficit
• Appreciation of the benefits of “buying” experience
• Comfortable with outsourcing specialist expertise
• Desire to avoid making a costly mistake
• Need reassurance and confidence to commit to such a monumental investment

Let me ask you this question – if you were to buy $20,000 in shares, would you do so without specialist advice? Your exposure to risk with property is much greater and the asset is not very liquid, to say nothing of the costs of getting in and out of the market. In short, everybody can benefit from using a buyers’ agent.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Why out-of-towners need expert real estate help.

Here is a little story about buyers from Brisbane and buyers from Melbourne trying to secure property in Sydney’s heady real estate market.

Just before Christmas last year we had a client come to us after finding a property they liked in Rozelle. These buyers had recently moved to Sydney from Brisbane and, although renting in the area, had yet to come up to speed with the local dynamics of this market.

This particular property had ample internal accommodation, double parking and city views, so it was easy to see why it appealed to our clients. HOWEVER, it was on a busy corner, lacked privacy, had limited usable outdoor space and was neither contemporary nor period in style. In short, this was a property that would be difficult to sell in a “normal” property market, particularly as it was of a style that generally does not appeal to Balmain/Rozelle locals.

After evaluating the property, we advised our client that $1.7M was “top dollar”. It had, in fact, just passed in at auction with a vendor bid at that very figure (and two other offers had apparently been made under that figure), however the vendors were hoping to achieve $1.8M. The agent reported to me that the vendors would accept $1.785M and I expect there would have been further room for negotiation if our clients were prepared to pay over $1.7M, however my clients decided to let the property go.

Christmas came and went, then suddenly we hear that the property had sold for $1.8M! A little investigation revealed that the purchasers had a very similar profile to my clients: they were of a similar age, recently moved from Melbourne and also renting in the area. The difference? Our clients had expert advice and avoided paying too much for a property that does not appeal to local buyers. If the Melbourne people had engaged us, they would have saved a minimum $15K – and probably more.

Postscript – our Brisbane people have since purchased a lovely double-fronted weatherboard in Rozelle at a much fairer price! Precisely the sort of property that will be easy for them to sell to a Balmain/Rozelle local when it comes their turn to put it on the market.

For more information on buying property in Sydney go to www.gooddeeds.com.au.