WHY USING A BUYERS AGENT MAKES SENSE

As your QPIA buyers agent, I am duty bound to achieve the best possible outcome for you.

 

The same is also true for the seller's real estate agent.

 

The real estate agent representing the seller is duty bound to get the best deal for the seller as well.

 

Therefore, any seller represented by a real estate agent has a significant advantage over the property investment buyer if they are not also represented by a property investment buyers agent.

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Real estate agents are not rougues, but they are salespeople.

 

They love to find out what you are looking for in an investment property and then highlight those aspects of the properties they show you.

 

A common tactic used by real estate agents once you show an interest in a property, is to convince you that there are other buyers also interested, and then your FOMO takes hold and you make an offer on a property before anyone else does.

 

Of course, you are then encouraged to offer more as there are now multiple buyers making offers, apparently, and you end up paying too much for a property which may or may not be investment-grade.

 

Once the seller accepts your revised offer, you figure the real estate agent was helping you, so overall you feel good about your purchase.

 

However, the real estate agent is not interested in whether your investment property makes you any money.

 

Their job is to sell the property as quickly as possible for the highest price.

 

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Buying an investment property should not be an emotional undertaking and you should never feel rushed or pressured into making an offer or counter offer.

 

You are not buying the property because you love it, you are buying it because you love the money it's going to make for you.

 

As such, property investment buyers agents take the emotion out of buying investment property.

 

They also recommend properties that are truely investment-grade i.e. properties that are cash-flow positive even when mortgaged, and have a long history of good capital gains.

 

Historical returns are no guarentee of future earnings, however investment-grade properties rarely disappoint, and because no one can see into the future, we have to use past capital gains as our indicator of future capital returns.

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Buyers agents have all the capital gains information for every suburb, and indeed every property that has been sold throughout Australia.

 

They are also able to accurately forecast the rental yield of the property, and should show you the various rental models available to you, so you can be confident you will have a cash-flow positive investment property.

 

Buyers agents therefore take the guesswork out of buying investment properties.

 

They also, if they are any good, only recommend low risk properties and suggest mitigation strategies in case something like a COVID pandemic occurs again.

 

Mitigation strategies are crucial, as they act as insurance against future loss of income.

 

 

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Good investment property buyers agents also have hundreds of insider contacts in the industry.

 

Cultivating these contacts is what good buyers agents spend most of their time doing.

 

These contacts connect with the buyers agent when they know an investment-grade property is coming to market.

 

The reason why these contacts want to deal with buyers agents is because they know that the buyers agent has clients who are pre-approved for finance, know what they want, and are ready to purchase, sometimes within 48 hours.

 

This suits the real estate agent acting for the seller, because if they can go from pre-listing to sold in 48 hours, they will have a happy client, happy boss and have earnt their commission with very little effort.

 

Typically, there is a two week delay between a seller contacting a real estate agent and the property being listed on Realestate.com.au

 

Once I know the address of the property that's about to come to market, I can conduct a market and suburb analysis, property appraisal and make accurate cash-flow projections.

 

This allows me to determine exactly what the property is worth and what the projected rental income will be without the seller's real estate agent telling me any financial information.

 

I then usually get access to the property when the real estate agent's photographer visits the property to take photos for the listing.

 

At this point I am able to confirm or revise my property appraisal and provide you with a complete tour of the property and the immediate surroundings, and send this along with the property investment plan to you.

 

You are then quickly able to determine if the property is right for you.

 

If it is, I will make the purchase offer based on the most up-to-date market information I used to conduct the appraisal. The sellers real estate agent knows the due dilligence I have conducted and usually there is very little argument about the offer price.

 

I then handle the pre-settlement paperwork and red tape, and ensure everything runs smoothly on the day of settlement.

 

At settlement the property transfers to you, and that is when the property management process begins.

 

 

 

Good investment buyers agents are also excellent property managers because they know and understand the market so well.

 

They know which rental models create the greatest cash-flows and surround themselves with experts in every aspect of property managment to ensure their client is getting the highest possible yield for their investment property.

 

This is something I excel at.

 

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Finally, good investment buyers agents/property managers are not pushy salespeople. They are professionals, like laywers and accountants etc.

 

If you don't see the value in having a lawyer act on your behalf during the purchase process, then the lawyer won't try to make a pitch to you. They have enough work already from those that do see the value.

 

The same goes for investment property buyers agents. They can only take on so much work. If a person doesn't see the value in the services the buyers agent provides, the buyers agent won't try to sell you something you don't want.

 

I can only handle between five to seven clients wanting to purchase an investment property at any one time. Any more than that and I am not able to offer the personalised service I pride myself on.

 

So, during our first meeting I want to make sure that we are a great fit, and that we are going to have a really productive and long lasting professional relationship.

 

I also want to make sure you feel the same way too.

 

We need to like and trust each other because we are in this together for the long haul.

 

Over the next 10 years, I expect you will buy another five more investment properties, and I want us to be comfortable to do that together.

 

If this is something you think we could do, please make an appointment so we can have a free 30 minute no-obligation chat together.

 

If at the end of that chat one of us is unsure, we will call it quits until the time is right, and there will be no charge.

 

Less than 1% of properties that are sold are investment grade, and they all sell before the general public gets to see them.

 

That is why we need to work together.

 

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I look forward to talking to you.

 

Best regards,

Richard Croome

Managing Director

Precision Properties