Buyers Agents and Sales Agents have a unique set of skills they each bring to the table. Having a professional on both sides of the real estate transaction helps both their clients and the agencies they represent. This article uncovers the way that each party can collaborate for better outcomes.
One of the biggest time consuming and frustrating activities for Selling Agents is having to qualify hundreds of potential buyers to find one buyer that is suitable and at a price that is acceptable. Finding genuine and “engaged” buyers is challenging.
Most buyers do not have a clear brief or a strategy on how to find the ideal property. They simply jump on the real estate portals to see what is available and click on the photos that look most appealing.
Some buyers are extremely fearful of the process and start with a negative mindset that property is “too expensive”, “there’s nothing available I like” or that “agents are too difficult to deal with” etc.
Other buyers are naïve about the process of bidding at an auction and what steps they need to take to get ready to purchase a property and start looking and making offers without finance approval.
The real estate transaction can run off the tracks due to any number of factors. Classic “buyers’ remorse” may set in early because a buyer does not understand the current market value of local properties. The buyer may not have their finance pre-approved. A hairline crack in brickwork highlighted by a building inspection report can be mis-interpreted as a major structural fault. Or the buyer may get cold feet during the cooling off period after talking with friends and family about the size of the new mortgage they are about to take on.
Buying a property, whether as a home or an investment, is one of the biggest financial commitments and most complex transactions most people will ever undertake. On the buyers’ side, it’s typically done without professional representation, however that is rapidly changing with the prevalence of buyers’ agents providing support. The onset of the Covid-19 severely dented consumer confidence when the pandemic first hit in early 2020. Consumer sentiment has gradually been recovering but is still about 3% below its pre-covid levels, which was already weak, making buyers more hesitant to make decisions around property purchases, and potentially harder for sellers to find a buyer. The economic uncertainty created by Covid-19 has significantly reduced listing volumes for agents and they are looking forward to a more stable market place.
Here are seven key ways a buyers agent can help a selling agent achieve more sales.
7 Ways Buyers' Agents can help Selling Agents
1. Qualified buyers
Not all buyers are genuine or ready to buy. Some are serial time-wasters. Others don’t have their finances sorted. Others are nosey neighbours, information gatherers and dreamy first home buyers. There are plenty of buyers who are unrealistic in their expectations. Buyers’ agents clients are serious and committed to the process – otherwise they wouldn’t have engaged a buyers’ agent. They have spent time with the client creating a buyers’ brief and have them motivated and ready to transact.
2. Off- Market Sales
Many more potential listings can be realised with the help of a good buyers’ agent. Many “off-market” transactions are done with buyers’ agents who can help a selling agent transact a property that a vendor may not wish to advertise or list in the public domain. Provided a contract of sale is prepared, the sales agent can show the buyers agent and their client the property and achieve a positive outcome for both buyer and seller. The buyers feel special that they are getting access to something that others are not seeing.
3. Genuine offers
Buyers’ agents are typically local area specialists and understand the markets that they specialise in. They track local sales and auction results and understand the factors affecting the local market and advise their clients accordingly. They don’t like wasting time playing games, and only place genuine offers with a view to securing the property.
Most people don’t know how to interpret the data and apply the information to their own situation. Sellers have someone – their agent – to do this for them. But, in the absence of engaging their own representation, buyers don’t and they’re at a disadvantage.
4. Saving time
Buyers’ agents don’t have time to waste looking at properties that don’t meet the client brief. So they are unlikely to request an inspection for a property unless it ticks most of the clients boxes.
The buyers’ agent will only present their clients with vetted properties and aim to transact as efficiently as possible. For ‘off market’ listings, a suitable buyer may already be on the buyers’ agent’s books – saving the vendor and selling agent time and money when it comes to marketing campaigns.
5. Avoiding Contract Fall Overs
The fact that a buyers’ agent has received a specific brief and selects a property to meet that brief means they’re able to move quickly and act more efficiently throughout the transaction. This means there’s less procrastination as compared to dealing with other buyers, shorter cooling-off periods and unconditional contracts.
Buyers’ agents assist throughout the process – from the property search, negotiation, right through to settlement – making sure the buyer is looked after. They assist with everything from the interpretation of inspection reports through to liaison with the conveyancer or solicitor. It all comes together to make the selling agent’s job easier.
6. Accurate Appraisals & Objectivity
Buyers’ agents aren’t emotionally attached to the property and provide unbiased advice about comparable sales and value to their clients. Buyer’s remorse and cold feet are common when dealing with emotive buyers. But when working with a buyers’ agent, the selling agent can be assured the offer is genuine and based on established facts, and rest easy in the knowledge that the buyer has been qualified and has realistic expectations.
In the typical lifecycle of real estate, buyers inevitably become sellers, and buyers’ agents are in an ideal position to refer their clients to the best local sales agents. Buyers’ agents’ clients often ask who they could use to sell their property, so it makes sense for selling agents to build strong relationships with buyers’ agents as a source of referral business.
Likewise, there is also benefit if sales agents referring potential buyers to buyers agents that need assistance in searching and negotiating for properties to expand each other’s businesses.
CoreLogic Partner - Rich Harvey, is a buyers’ agent, economist, property investor and CEO of www.propertybuyer.com.au - a totally independent buyers’ agency that specialises in searching, appraising and negotiating real estate exclusively for buyers.
Rich and his team at propertybuyer have purchased over 3000 properties for their clients and won 34 major awards including the prestigious National Telstra Business and National Buyers’ Agent “Award for Excellence”.
Rich has served as President of the Real Estate Buyers Agent Association of Australia (REBAA) and Chairman of the Buyers Agent Chapter of the Real Estate Institute of NSW to improve the professionalism and standards within the buyers’ agents industry.