I think they can be very good (assuming you get a good one and stipulate what you want).

I have bought a few through a BA and they have achieved prices that I couldn't (inside knowledge etc). If you have a BA that buys often they have contacts and often agents ring them when something is a good deal, or has been reduced etc. Sometimes they even get calls before a property is listed.

BA's are not only for newby's and time poor people. Find one that specializes in the area you are interested in.

Hi Geoff81

I recently used for the first time a BA. I knew the type on rental investment I wanted and spent two days in the town looking around and chatting to agents as well. For me this was invaluable part of due diligence. I then found a property that fitted my requirements and got the BA to inspect and report. Fortunately, his views were the same as mine and I then asked him to make an offer. As he knew the selling agent he was able to demonstrate we were serious, but also pointing out we had other properties to consider. I decided with the BA on the offer level which was some way off the asking terms and after a few hours it was agreed. On this basis alone, the BA was of huge value in the amount he negotiated off the asking price and following exchange the BA plugged me into his local network of professionals.

Do they earn their fee? In this case absolutely.

Cheers


Antony
www.MyProp.com.au

Regarding the initial question about discount on buy price.

Sometimes as a Buyers Agency we buy genuine bargains. This not the main way we are adding value in my experience. A few things are normally working against securing a bargain buy including the fact that a majority of investors are buying in the same price ranges, locations and property types. When you are looking to buy a standard property in very good condition and promising location then the potential to wait for a great price is still there but most likely someone else will buy it before you if price is your highest priority. It is nice when it happens though, recent purchase this year of a townhouse we bought for 450k had previously had a 500k offer rejected and last advertised price of 480k+ after starting off at offers 520k+, the existing good working relationship we had with the selling agent was a key in knowing this was a possible target.

If you are targeting deals with a twist such as renovation, development potential, higher price ranges then the potential for great buy prices is much larger, when you are buying a ready to rent townhouse for 400k as close to the CBD as you can get in a desirable location the potential for discounts are much less. You can adjust these general ideas to suit overall market conditions as well which in Brisbane for the last 18 months have been buyer friendly.

The main ways a quality BA will add value I believe are.

> Securing a quality property for the long term and at a price that isn't over the mark.
> Always being on location and ready to act quickly when opportunity presents.
> Working with you to meet your stated goals and criteria

Wow, thanks guys. I think I fit into the newbie/time poor category. But maybe I should just reprioritise things so that I have more time for property research.