Good day. My name’s Ben Everingham, and today we’re going to talk about the 10 benefits of using a buyer’s agent.
So my name’s Ben Everingham, and I’m excited about today’s video. I’m the director of a buyer’s agent based in Queensland with also an office in New South Wales called Pumped on Property. We help about 10 investors, or we cap our business at 10 investors each month. We help those investors buy properties in New South Wales and Queensland. Today I’m really excited about this video because I’m going to talk about the 10 benefits of using a buyer’s agent.
I thought to get started on today’s video we’d actually talk about what the hell a buyer’s agent actually is. I’m sure there’s people watching this video just sort of scratching their head going I’ve never even heard of a buyer’s agent before of I’ve just started to look at buyer’s agents, and hopefully for you this is meaningful.
I remember when I started this business sitting down with my family and friends and trying to describe to them what we actually do as buyer’s agents, and I still think half of them don’t really know what I do on a day to day basis. I’m going to break it down today and talk about some of those benefits. A buyer’s agent is a licenced property industry professional that helps instead of working to sell the property for the seller, they actually work for the buyer to help that buyer get the right property at the right price in the right area in the right time and negotiate that property on their behalf.
I know it’s a little bit different I suppose than the traditional real estate model that most people in Australia have grown up with which is when I need to sell my house, I find someone to sell it for me, but 80 to 90% of Americans use buyer’s agents these days to buy property. It kind of makes sense because let’s say for example, you get between one and four hours per week to spend on property during Monday to Friday, and then on weekends you’ve got family commitments, lifestyle commitments, and all of a sudden it’s not as easy to go out and inspect 10 investment properties as it was before all those things crept up in your life.
A buyer’s agent can take some of that pain away by obviously working on your behalf and doing whatever it is that you need done to achieve your goal, so a question that I get asked all the time is do I actually need a buyer’s agent and what are the benefits of using one? We’ll start from the top, and I think the number one benefit for me since I started this business, because I’m an investor. I’m obsessed with and love property, and the biggest thing that I’ve learned that I wasn’t doing before I started my own business was developing a crystal clear strategy for exactly where I wanted to be in the future. Not every buyer’s agent that you talk to is going to sit down with you and spend that time nodding out a strategy. Unfortunately, there’s a lot of companies out there like anything in life where they just want to get a lead, convert it into a sale, roll that person through, and you never hear from them again.
For boutique buyer’s agents like myself that really want to support you to achieve your long term goals, not just your short term goals, strategy is everything. To start the process, you’d really sit down and go where am I right now and where do I want to be by the time I retire, and what’s important to me during that journey because we’re not robots. We’re people, and we can’t just follow this mathematical machine from A to B without things in life creeping up. Who wants to live the next 10 years saving every single cent and investing every single piece of money that you earn to look back and go man, I wasted my 20’s or my 30’s or my 40’s or my 50’s chasing something that I’m here now and it’s not even that important to me.
Developing that strategy is super important, and getting clarity in terms of what your next step looks like and where you’d like be long term so that that long term vision pulls you through all the things that you’ve got to go through to become a professional investor is really really important. The next benefit, I suppose, of using a buyer’s agent is finding an agency that will coach you and mentor you at the same time as they’re getting you a transaction on your next property. Again, not everybody in the industry does this, but the people that love property and the people that aren’t changing time for money, they’re genuinely in the business to help other people, will sit down with you and share everything with you.
I think the old days of companies holding onto all of their IP or their information and hoarding it and not sharing it with people are just completely over. The cool thing about our agency, and again there’s some other great agencies in the industry as well, is that when you come in as a client, we’ll teach you how to identify the right area, the right type of property, how to do your suburb research correctly, how to negotiate. We’ll introduce you to an entire team of professionals that can help you do that stuff. I think that’s really handy because the things that I’ve learnt through this business, even though I’ve bought and sold and held a lot of property before I started this business, is just invaluable. Thy systems, the processes, the checklists that we now use, are fantastic. I think any company that’s worth its weight in gold and that’s really looking to help people and build long term relationships should be giving you all that stuff as part of their process and service, not holding onto it and just trying to get you an outcome.
Another benefit of using a buyer’s agent is the fact that they save you massive amounts of time, and they also save you money. You wouldn’t go to a buyer’s agent who jumps online and buys you a property at market value. You want to go to someone that can help you get the right property at the right price with the right potential for the future. I personally, for anyone that has watched my videos before, you’d know that I love manufacturing value through renovations, adding bedrooms and bathrooms, or subdivisions. I love that in granny flats, you can increase cash flow. I love buying high quality metro properties.
Each buyer’s agent that you talk to is going to have a different strategy. It’s about finding the agency that aligns with what it is that you would like to achieve. Now, in the short term and then long term, and then hopefully they’ve got people in the business that are already where you see yourself in the future and that you can sort of hang off their coattails, learn from them, and move forward. Or maybe you’re a very sophisticated investor already, and you’re just time poor, so sometimes going to somebody else and outsourcing that service can save you that time, and that money, and that hassle and the headache of grinding, and if you’re working 60 hours a week in the corporate world like I used to, who wants to spend eight or 10 hours on a Saturday looking at 15 properties, and every night on realestate.com or everyday on the train.
Saving you time and money is another fundamental thing. Another one of the benefits is sourcing the right property in the right market at the right time, so one of the cool things about getting to spend 60 or 70 or 80 hours a week loving and researching property professionally for people is I get to read things, interpret things, understand things on a completely different level because my job in the time that I have in my day allows me to do that. Identifying which market is going to perform next, and which market’s going to get you the right long term growth, and which market’s going to give you the cash flow that you’re looking for.
Some of the benefits of working with the right buyer’s agent is they’re the ones in the market doing the ground work every single day and buying these properties day in day out for other people just like yourself. Another one of the big benefits is a buyer’s agent’s ability to do the right sort of research. For me, when I’m looking at any investment property at this stage, there’s about 230 different indicators that I look at, some of those to do with the global environment, the national political environment and economic environment at the state level, and then you start reducing it down to an actual market, and the suburbs within that market place, and then to a street level, a property, the housing commission in an area for example, and then once you get to the property level making sure that you’ve got the right process in place and checklist to inspect those properties properly.
Then once you’ve found the right property, the negotiating tools. There’ so much more that goes into buying property than just jumping on realestate.com and putting your finger in the air and hoping that the property that you buy is the right one based on a strategy that you may or may not have. A buyer’s agent can really help reduce the stress and fear associated with buying a property. I know myself, and I buy 120 plus properties a year for my clients. I buy at least one or two properties a year for myself because I just love this stuff. Even when I’m buying for myself with all of that experience, sometimes the emotional side of just being a person and a real person overwhelms you, and an agent will say something that will throw you off or upset you. Or you make a decision based on could I see myself living here, and is this right for me?
All of those things that come into play, and you start to doubt yourself, and you start to over analyse the wrong things. A buyer’s agent can really help you step through some of that fear and give you the confidence to do it yourself. Through our business, for example, we’ve got clients that come to us because they’re looking for a coach and a mentor as well as a transaction. Then we’ve got other people that come to us that are looking for five, 10 properties over the next 10 years. Wherever you’re coming from, I suppose the right buyer’s agent is going to hold your hand through that journey and really work with you on whatever it is that’s really important to you and the challenges that you’re facing in your life.
Another one of the benefits, and this is my favourite thing in the world, in terms of … You know how some people are good at certain things? The thing that I love to do, and the thing that I’m great at is negotiating. Negotiating, and so this office space that I’m in right now, I negotiated free space for the next five years. That’s one of the examples that you can potentially do if you’re prepared to think a little bit more creatively and a bit outside of the box.
You really want a buyer’s agent that is obsessed with negotiating. For me, the whole what property are we going buy at what price point, with what conditions, is my obsession and passion. I’m sorry I’m coming across a bit casual, but I love that stuff. That’s why I get out of bed in the morning outside of helping our clients buy the right properties. I love the thrill of the chase. I love buying a property under market value. I love finding that little deal and then working with the agent over time and understanding the things that are important to them to get the deal across the line at a price point that works completely for our clients and to not put it in a bad way, maybe not always for the person that’s selling the property because sometimes if you’re going to buy below market value or buy something with massive potential, sometimes someone has to win and someone has to lose. Negotiating’s massive, and what I find is that most people unfortunately feel uncomfortable asking for things because of the fear of rejection or the fear of a no. Someone like myself who doesn’t hear no can be a real help for those sorts of things. Any buyer’s agent that you use should have an incredible history of negotiating in every aspect of their life.
The last thing that I wanted to touch on which is the 10th benefit of using a buyer’s agent today, is a buyer’s agent’s objective, and they’re just working for you. Legally if you pay me, I have to get you the best possible outcome, and you’re the one that I’m working for. Unfortunately, there’s some buyer’s agents out there that disguise themselves as buyer’s agents. They don’t charge you a fee. They’re working on your behalf, and then all of a sudden they show up with this brand new property in front of your lap, and before you know it you’re buying an inner city unit in Brisbane or Melbourne or Sydney, and it’s all a little bit too late, by the time you realise what you’ve done.
The right buyer’s agent should be paid by you and should be working on your best interests and from your perspective to find you something that meets exactly your goals and criteria and all. Lets talk about this for a moment. I had this client recently from Melbourne. Fantastic guy. I get on with him really well, just about to buy his second investment property. He came to me, and he said that he wanted to buy a property within seven to 10 K’s of Brisbane CBD for under 500 grand. I said no problems. I know some great suburbs, educated him on the suburbs, and then began to go to the marketplace.
Every week we caught up on the phone for nine months. Every week I inspected 10 properties for him for nine months. You can do the math. I inspected a hell of a lot of properties for this guy. The right buyer’s agent who is working for you shouldn’t care about their billable hours or how much they’re making per hour for any one client. They should be focusing on the bigger picture and making sure that their client is absolutely stoked about the investment property that they have received.
I hope I haven’t gone and rambled too much for you today. As I said, I love this stuff, and I love talking about it. I love helping educated people in this stuff. For any of you that see value in potentially continuing the conversation, I’d love to give you the opportunity to have a one on one free strategy session with me directly. I’m Ben Everingham. I’m the director of this company Pumped on Property.
Until next time, stay hungry.