Expert Advice with Ben Handler 15/03/2018
When it comes to making money on property, it’s crucial to buy well and that’s why appointing a buyer’s agent can make all the difference.
A common saying in the real estate industry is: ‘Money is made when you buy, not when you sell’. Basically it means that the price you pay for a property is the major factor determining your profit later on.
There is no point in relying on the state of the market or wishful thinking, it all comes down to buying well, i.e. choosing a property that will increase in value over time.
Many people are turning to buyer’s agents to assist and protect their interests. While buyer’s agents have been established here since the 1990s, the perception remained for a long time that there were ‘only for the wealthy’ or used by property investors.
While it may seem exciting to start house-hunting, especially for first-timers, trawling the online listings and traipsing around weekend inspections quickly loses its appeal. It doesn’t make sense to waste time and energy looking at substandard properties that are out of your price range when a professional can make the process so much easier.
Just as the best real estate agents will sell at a higher price earning you more money, a great buyer’s agent will make you money when you buy.
Many buyer’s agents on average buy a property or two every week. Doing their job well requires experience, great relationships with local selling agents and the ability to negotiate a great deal. Most importantly, they live and breathe the local market and exactly how much to pay (and not to pay.
A buyer’s agent has a major edge over anyone looking to buy property because they look at 45-60 properties each week; have access to 20 or so off-site properties, and know which streets or suburbs to avoid.
Cohen Handler’s agents report that for every 10 purchases they see at auctions each week, in around 8 (sometimes 9) cases, the buyer is paying way too much for the property. They also witness people actually bidding against themselves due to inexperience and the skill of the auctioneer – more common than you think.
While those new to the concept of a buyer’s agent may baulk at adding another cost to the buying process, it’s important to note that a good buyer’s agent, like Cohen Handler can save 7-9% of the property price due to superior negotiation skills and industry experience, so the service usually pays for itself.
Most of us wouldn’t consider fixing our own electrical or plumbing problems, so why when it comes to the biggest purchase of our lives are we happy to muddle alone by ourselves without the help of a professional?
Cohen Handler’s buyer’s agents have the experience and local knowledge to help you buy the right property at the right price.
Contact us now on p: 1300 420 160 or go to www.cohenhandler.com.au
Ben Handleris co-founder and CEO of Cohen Handler, a buyer’s agency
with over $3bn worth of properties purchased in nine years.
He is also into learning, reading and doing yoga and meditation
to bring mindfulness to his professional life.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.