SHOW NOTES AND TRANSCRIPT
Hi there, and welcome to today’s episode of the property Journal. Today we’re going to be talking to Jacqueline from the savvy Fox Property Group. And we’re talking all about property buyers agents. What they are and why you should use them. So I’d like to welcome Jacqueline on the podcast. Hi, Jacqueline.
Hi, Marcus. Thanks for having me.
I’m really excited to talk about today’s topic. So let’s jump straight in and just I guess, go straight to the source here. What is a buyer’s agent? And how do they differ from the traditional selling agents?
Okay, so a traditional selling agent, most people have at least had someone in their family that’s bought or sold some property. So they’re very familiar with a traditional selling agent that is paid for by the seller via commission. What a buyer’s agent does is they one hundred per cent represent buyers only. So there are no side deals with kickbacks from selling agents or sellers. It’s, it’s a relationship between someone is looking to buy and someone that’s representing them.
Yeah, right. So traditionally, who who would be using a buyer’s agent.
So the sort of people that use buyers, that is not just the rich and famous is people, sometimes it’s you. It’s people that are potentially not located where they want to purchase. So I have many clients that are in say, for example, in Melbourne, or Sydney or Dubai or Malaysia. So they just they’re not on the ground. They don’t know the local market, and they physically can inspect properties. Another great buyer pool that I work with, often you say a first-time buyer, so people that are just inexperienced, they’re too nervous to do it themselves. And they think that it’s money well invested to hire buyers agents, which Yeah, it’s absolutely the case for first-time buyers. So the other people that I often find are attracted to buyers agent services are people that are just time poor. So they might have a fabulous business that they run, personally, but they might work six days a week. And on that seventh day, they like to spend it with their fans or at church or whatever it is, their hobby is, and they just don’t have the time. So for those sort of people hiring a buyer’s agent is valuable.
Yeah, of course. And I guess the other thing is, nobody wants to feel like they’re overpaying for the property. And I guess, in the real estate market, if you do overpay, it can mean 10s of thousands of dollars out of your back pocket. So what are some of the I guess, strategies that a buyer’s agent typically can use. And I’d like to focus on a few here such as like buying off-market properties because I think that’s an area that almost exclusively is dominated by the buyer’s agent market as opposed to general market not having access to those.
It is Marcus and what one of the things I would say there are its relationships and networks. So you might buy a property once every five years as the everyday Joe Bloggs. But someone that’s buying properties weekly, such as a buyer’s agent, they get to build relationships in the make hundreds of phone calls to two different agents in order to have properties for the buyers to purchase. So there’s a lot of relationship building going on. And when I first have a client wish list, then I want to first start working for a client, I broadcast to all of my network in the area that I know that they want to purchase. So it’s not about me getting on the real estate portals and searching as everybody can, it’s about actually going to the source. Because what you’ll find is secret sales, as people call them is then actually sit online on the portals get they might be in the future. But right now, they probably don’t even have photos taken on them or the agent might even have an agency agreement. So they are sales that are potentially going to come on down the track. But for example, it might be an investment property that has at least a tenant still there to say December, but the owner would quite like to sell it now in June. But they actually the only people that can sell it to is other people looking as an investment because there’s a there’s going to be a tenant in their copy someone that wants to move in. So potentially I, that agent might say to me, jack, do you want to come through and your client can maybe purchase it now and it’ll settle in December. And so it’s those sort of ones, they don’t want to disturb the tenant. They this sort of secret sales that go on a lot behind the scenes, it’s not online, but there’s definitely a sale that can happen. And so I guess using a buyer’s agent can streamline the process? And do you find that you can set you can put together I guess deals for your clients rather quickly through your network? Absolutely, it’s generally an Oh, gosh, it can be really quick, but a four to six-week process to find somebody their home.
And what about sort of other properties that are, I guess, aren’t even on the market or listen with an agent, because you’re telling me off, I guess off camera that you were in the past, you’ve sort of gone to pretty extreme lengths to get in front of clients, to see if they’re willing to actually sell their home. So you’ve gone and sourced the property for a client. That’s not potentially on the market, and you’ve just approached them directly.
That happens all the time. So I’ve had clients that specifically want to purchase in a particular building. So it might be to two properties on the market on the real estate portals in that building. And they might not be suitable for whatever reason. So it’s about going to the search engines that you know agents have access to it’s about looking at who’s an investor in that building, who’s a homeowner and then targeting them. So finding where they live or what their email is, in order to approach them directly and say, Look, I’m working with someone which we can would you consider selling? I know you’re not on the market, but would you consider selling?
What would you say your success rate is? Because it’s one of those things that most people who are thinking about selling you’d assume would also say no, but obviously, that’s not the case. So
maybe be surprised most people say, Yeah, I’d be interested in selling. So definitely most people are interested. There’s very few that say no, but it depends on The Price Is it going to be so far above the market value that it’s, it doesn’t make any sense for the buyer to purchase it. That’s the difference. And you’re not paying a selling fee in this transaction, you got to remember there’s no marketing is no hiring furniture, there’s no sales agent commission. So it makes a lot of sense in a number of ways for the vendors to actually go this way if they are approached
you. Okay, fantastic. And so I guess, on the sort of negotiation side of things, because that’s probably the biggest thing. I guess that scares people when it comes to buying real estate or negotiating or bidding an auction. So how do you help clients through that process? And what sort of role do you play whether it’s negotiating with the vendor or actually bidding at auction?
Yeah, look, negotiation is an ass, it’s, it is about giving a bit to get a bit. So it’s never all about you, there’s when you entering a negotiation, it has to be so that each side comes out both feel like they’re we know, otherwise, the negotiation generally doesn’t come together. So you’ve got to have a willing buyer and a willing seller. And that’s when a negotiation really comes together. So when we talk auction, the auction is a very transparent process in that you can see what’s going on in front of you. I personally love an auction. I love the theatre of it. Not every property is great to go to auction because of some marketplaces and even some price points that just don’t suit the property to go to auction. It’s not for every property. But for ones that do, I would suggest it’s you know, don’t be nervous and shy about going to an auction. Don’t say I’ll wait till it passes in. And maybe I’ll be interested, then go along, attend and see who out there is interested in the property is the best, absolutely the best showing of what market value is what someone is prepared to pay on the day, at an exact time. And that’s market day.
Yeah. And I guess when working with a buyer’s agent, what’s the typical process? So let’s say that I was based over in Dubai, or even in Melbourne or Sydney somewhere not in the local sort of GoPros market where you’re operating? What’s the process they can expect from working with a buyer’s agent? I mean, do you go find them properties? And then send them through? I mean, is there a process in that regards?
Yeah, look, I work in the northern New South Wales Gold Coast and Brisbane areas. So it’s through that corridor is the areas that I can personally service I art working with people based on a wish list, and then there’s the non-negotiable, and then it’s the all we’d really like this sort of list. So I work with clients closely to come up with those lists. And once they engage me to actual them, then I went view a number of properties actually stopped my research online. Before I even pull up out the front, I’ve checked to see if it is in a flood zone, is there easements Is there a, a great big motorway along the back fence line. So there’s a lot of searches that I do, and all my checks and balances before I even go to the property? actually, send all this through to the clients and I and I recommend, okay, I’ve done all the searches on these actually think I would like to do a physical inspection. What do you think always getting feedback from them? And then I’ll go into the physical inspection, and then I’ll do a report for the client. And the thing is, with the selling agent, when you read the ad online, it’s telling you about all the positive features, and I’ve taken the photos from the best possible angles, what I do is probably the opposite. I’m showing a couple of negative features. I’m saying, Well, look, I took this photo of the front, but they took it from that angle, because it’s a jelly, big buff soap out the front, and you’re going to hear boxes pulling up and going every hour. So there’s a lot of different things is there are the overhead power lines that go across the house. And I’ve just typed those out of the photo. So there’s a lot of things that we look for physically. And that a little happy to report as to what’s really great about the property. And what’s maybe a little bit not so desirable. And if you maybe would discount the property because of that, or completely take it off your list. Or maybe you just want to pay less for it. So if it’s an investment property, yeah, it might not be in a suburb that you personally live, but maybe it’s in a suburb that a lot of working class people live. And it’s always going to be tentative. So this is a lot that goes into these reports and the physical inspection that and the all this gets fed back to the clients and communicated. Because I want you to I take videos as well, I want you to I want it to feel like you’ve been to the property. Yeah, I guess,
like you said, often what’s represented online through those real estate forums isn’t the real story. And so I’m sure clients and you probably ideas quite often. And when you do your sort of vetting in New research, you find out that there are huge issues with it define that being a licensed property value that gives you the edge when it comes to an understanding. Firstly, what is a quality property, but what a client should ultimately be paying for?
Yes, Marcus is actually it’s actually very low barriers to entry to become a real estate agent. So one of the things with you don’t need to have a construction or any building knowledge. It’s literally some from the real estate Institute in the state that you leave its law and things like that. But there’s no knowledge of what to look for. How is there? Is there a roof lake? Is there rising down? All these sorts of things that as a value are we absolutely are looking out for because the house solid the building is going to really impact is it going to not have a tenant in for six months while we do renovations, and all these things are going to contribute to the actual return on the property?
Yeah, fantastic. And so I guess Lastly, let’s talk about the fee structure of a buyer’s agent and talk about why someone would actually pay that fee and what the, I guess, what they’re looking to get back from that sort of transaction.
So the fee structure does vary, there’s no set fee that you have to it’s not a regulated thing by the state that you live in. So it is set by the buyer’s agent themselves. Personally, I have a band between different price points. And that is a set fee structure. So for me personally, I don’t want to have a to slim a band because it would then look like I’m not working on trying to get the lowest price to pay the lowest price for the property. So
So I guess and the advantages for you or for the buyer is that you’re they’re negotiating on a cheaper price. So let’s say they’re paying your fee of you to know, $5,000 you’d expect them to go and be able to win a property for more than that.
It was very, it’s very rare that when a client gives me the budget, it would be very, very rare that I am not included in as the course I negotiated myself as one of the costs and it’s very rare that I’m that they pay more than my fees included in the cost. Yeah, the
property. So what you’re saying is basically, you can almost assure them that they’re gonna get more than what they’re paying you off the property that you purchase. Correct. Okay, fantastic. And so for our listeners out there who want to know more and thinking about hiring a buyer’s agent, what’s the best way to get in contact with you? So the folks there
will probably contact me from my website https://savvyfox.com.au/ Today you there’s plenty of opportunities on my page there to send a contact form into me. And yeah, I’d love to make have a cup of coffee chat with you and see where we go.
Good. Fantastic. Well, thanks very much for being on the show today, Jacqueline. Thanks, Marcus. No worries. And that was today’s episode of the property journal. We’ll see you next week for another episode. Thanks for