5 Need-to-Know Facts About property Investment Agents
Many new investors will consider external help as they start to feel overwhelmed by all the information and diverging strategies surrounding property investment.
While the answer to the question ‘do i need a buyer’s agent to buy a house?’ is a resounding ‘no’, it’s important to surround yourself with those you trust if you do seek out investment advice.
A property buyer’s agent or property buyer’s advocate may be someone you seek out when it comes to investing in your first property. While many are very good at their job, there are a range of points to consider when it comes to property buyer’s agents so that you know you’re getting the very best advice.
It’s important to remember that investment property agents will not always act solely in your interests. Here are 5 key facts that should be known by those seeking out the advice of a property buyer’s agent.
Agents can be selective
A property buyer’s agent can be selective when it comes to what homes to show you in your search for your first property investment.
While you might know what you’re after and convey this to the agent, they aren’t under any obligation to take you to something that fits that brief. Nor do they have to show you every house out there that fits within your criteria.
At worst, they can actually show you homes that only serve their own interests. This may be because that home is easier to sell, or there is some other incentive behind choosing a certain home.
If you do go with an agent, it’s important to reinforce to them what you’re after and what you’re not. If they still persist in showing you property that isn’t for you, then it’s time to find a new agent, or go it on your own!
Agents will try to sell you a property quickly
At the end of the day, a property buyer’s agent priority is to sell you a house as soon as possible. People pay agents to find a property, and they’ll try to do this quickly to generate more clients, thus more money in their pocket.
This means that an agent may not necessarily get the best price on a property, or take the time to negotiate for a better price on your behalf. You may be able to save quite a bit of money by taking the time to negotiate with the seller, which means more cash in your pocket instead.
It’s almost impossible to find anyone who will work as hard to protect your finances as yourself.
Agents understate certain costs
As previously mentioned, a property agent will want to sell you a property ASAP. This may mean dismissing some of the concerns you have surrounding the property they are proposing you invest in.
There might be parts of the house you’re apprehensive about, knowing that the cost of repairs and renovations aren’t going to be insignficant. An agent may try to downplay these costs, using their ‘experience’ as a way to reassure you that it’s not really something to be concerned about.
Keep an ear out for this false reassurance, and make sure you challenge what they have to say. Go out and get another opinion on what any repairs or renovations may actually cost.
Agents aren’t always in your corner
Although they are often referred to as a property buyer’s advocate, who they advocate for can often be up for debate. Often, agents will rely on the same set of service providers whose purpose is to conduct appraisals, home inspections, legal work, and mortgages.
In order to maintain the working relationship between these inspectors, mortgage brokers, and buyer’s agents, the quality of the service may be in question.
A home inspection may not be properly carried out on property, providing a report on the property that meets the needs of the agent as opposed to the buyer. They may neglect to raise certain issues with the property, such as structural flaws or other issues that may hinder the growth and value of the investment.
To avoid this potentially disastrous outcome, always conduct or organise your independent inspection, read the reports yourself, and carry out your own due diligence.
Agents incur a (sometimes) unnecessary cost
Many new property investors will ponder the question ‘do i need a buyer’s agent?’ That ultimately comes down to personal preference, but keep in mind, everything a property buyer’s agent does, can be achieved through your own personal development and learning.
While it may be more time consuming to carry out the research and education development yourself, doing so can save you the hefty costs of using a property buyer’s agent. There are also courses designed to fast-track this research and educating phase, which cost of a fraction of the buyer’s agent fee.
This way, those short on spare time can still educate themselves and gain independent advice from experts.
These online Property Investment Accelerator courses are engaging and interactive. You can take them at your own pace and learn from live Q&A sessions, templates, and tools. Moreover, by enrolling in the course, you will become a part of a community of property investors.
Check out the Property Investment Accelerator Course’s reviews to understand what you will learn and how it can help you earn passive income.
The great part of teaching yourself about property investment is that you can apply this knowledge and research in your next investment endeavour. Earning a passive income from property investment really relies on acquiring multiple properties.
Knowing how to invest yourself means you save money on a property agent not just once, but every time you invest in a new property. Without independent research and education, the bill for property buyer’s agents will quickly add up.