Do you want to purchase property in Australia right now?
Do you hate the thought of spending your precious weekends traipsing through open homes?
Do you feel nauseous at the thought of scrolling through hundreds of lacklustre descriptions while searching for your perfect property?
Then read on to discover a simple solution.
Engage someone to find the property for you!
Would you pay someone to find your next investment property for you?
Before you scream NO, why pay someone to do what I can do for myself, I invite you to consider this.
- Would you engage someone to call the banks for you to arrange your best home loan?
- Would you engage someone to find a great deal for your life insurance?
- Would you engage someone to organise the best rate for your new car’s finance?
If you have used a mortgage broker, an insurance broker or a motor vehicle broker in the past, then why not consider a house broker?
What is a house broker?
To put it simply, a house broker is somebody who will find a property for you to purchase. House brokers in Australia usually fall into two categories:-
Buyer’s agents are licensed professionals that specialise in searching, evaluating and negotiating the purchase of property on behalf of the buyer.
Property finders source properties based on your preferences and requirements. They will identify properties for you that have good investment potential but they are not licensed to negotiate on your behalf.
Who pays the house broker to find my property?
A buyer’s agent is a registered real estate agent who will require a fee from you. This is usually a percentage of the purchase price of your property.
A buyer’s agent may charge 2-3% commission to find and negotiate a great property deal on your behalf. So, if you purchase a property for $600,000, the fee charged to you would be somewhere between $12,000 to $18,000. If the buyer’s agent has negotiated a discount for you that is greater than $20,000, then this is probably money well spent!
Real estate agents are usually paid their commission upon settlement of the property. This is typically how the buyer’s agent will be paid.
A property finder is somebody with whom you have a private agreement. You can therefore negotiate your terms of engagement to suit your specific needs.
A property finder will typically charge a 1-2% fee for finding your perfect property for you. This is sometimes a great option for property investors who want to find a particular type of property to which they can add value.
For example, you may be looking for a property that is discounted because it has outdated decor and neglected outdoor areas and can be easily updated with a simple cosmetic renovation. A property finder will be experienced in identifying properties that have real potential, as opposed to properties that are just plain ugly with no potential for value adding.
Depending upon your cashflow situation, you may agree to pay your property finder their commission upon settlement of the property. Alternatively, if you are planning to renovate and sell quickly, you may agree on a slightly higher finder’s fee to be paid upon settlement of your completed project.
The beauty of dealing with a property finder is the ability to create a win/win for all parties.
How do you find a buyer’s agent or a property finder?
If you want a buyer’s agent to negotiate a property purchase on your behalf, then the easiest starting point is to enter “buyer’s agent” or “buyer’s advocate” into a google search. Do some research, read the testimonials and, if possible, speak to previous clients of the buyer’s agent.
Finding a property finder that you trust may be easier than you think.
If you are a time-poor investor, you will save yourself time and money by engaging a property finder to do the legwork in locating the property and then taking over the purchase negotiations once the property has been identified.
Do you network with other investors? Is there somebody in this network that you would trust to find properties for you?
Networking can be one of the most beneficial activities for property investors. By tapping into the wealth of knowledge and experience amongst your peers, who knows where it will take you?
How I can help you…
I am currently searching for properties for Perth investors. I’m identifying some nice little projects for those who want to carry out cosmetic renovations to achieve additional equity, rental income or chunks of cash.
I can offer you guidance to do it yourself efficiently.
If you would like to find out more, please drop me a line to [email protected]
Have you ever engaged a professional to find a property for you? Was it worth it? Please let us know your experience in the comments below.