Our client had the budget, so why did we stop bidding?
One of the biggest concerns potential clients have when considering hiring a buyer’s agent is whether they will overpay. Many buyer’s agents charge a percentage of the final purchase price.
The higher that price the more the Buyer’s Agent gets paid. And here lies the main difference between a greedy buyer’s agent and an honest and ethical one.
A Buyer’s Agent that works to a strict ethical code will never overpay for a property. They know what a property is worth and will not cross the value threshold even if it means returning to the drawing board and starting over. Here at Buyer Solutions we take great pride in buying the best quality properties and at the lowest price.
We buy properties that are of great value and not ones that are overvalued.
Understanding the market and the available ‘stock’ on the market is critical to us doing our job well. We must know neighbourhoods like they are our own. We must research, source and uncover; that’s our job. When we go to auction or into negotiations, we are armed with local and hyper-local knowledge.
We set a maximum budget to ensure we pay a fair market price and don’t get carried away.
Always remaining objective and neutral gives us the competitive edge that home buyers going it alone don’t have. Time and time again we witness buyers overpay because they are tired of missing out or overly competitive and uninformed.
As an example, this weekend we walked away from an auction empty handed.
Photo Credit: RT Edgar
We had the budget, but we were not prepared to pay over value. The property in Newport was quoted by the selling agent at $800,000 +. We knew looking at comparable sales in the area that a property down the road with two full baths including an en-suite plus a powder room sold for $930,000 just three weeks ago.
The property we were bidding on had one shared family bathroom and a half bath on the lower level in the laundry, no en-suite. This property was also about seven years old without much depreciation. The property down the road was brand new and had depreciation.
Lastly, our very thorough pest and building inspection showed poor building workmanship so we had to factor in repairs and maintenance into our total purchase price. If the property sold around the $920,000 it would have been a good buy, but no more than that and this is why we walked away.
The final sale price was $950,000. Not for us! We now have to start from scratch, but this was the right thing to do.
Not having an ensuite bathroom to the main bedroom may mean this property could be hard to lease in tight rental markets, a factor confirmed by our Property Manager Amelia Davatzis.
If you want an expert on your side, call us to discuss your property needs. We will make sure you buy well and at the right price.
For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au
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+61 39816 8555