Why Hire A Buyers Advocate ?
"Buyers Advocate"......a 1990s phenomenon or just another example of specialization?
In reality the only thing new is the name! The term was coined about 20yrs ago and has been adopted to become the generic label for anybody who professionally assists a buyer to purchase real property. In reality, the role that buyer's advocates fulfill is not new; any competent real estate agent would always offer assistance in purchasing as one of his or her client services.
The trend in estate agency practice over the last twenty years has seen mergers, and the rise of "super-sized" real estate offices, large franchise chains and revenue driven practices where the emphasis has been on the fee driven, volume sales model to the detriment of a range of professional services, including assistance with purchasing, as it was difficult to measure by revenue generated and usually less lucrative than available sales commissions.
Some agencies have become so focused on market share and sales volume they encourage agents to employ "personal assistants", with the aim of managing more sales campaigns, generating increased revenue via the "substituted service" of, with worst, "sales trainees", usually with little or no practical real estate experience or detailed product knowledge.
Genuine assistance when purchasing rapidly became a forgotten service, especially from the real estate "superstores" with an eye on sales "churn over!"
ENTER, THE "BUYERS ADVOCATE".
Some were quite skilled, licensed and experienced Real Estate Agents, respected by their peers for their knowledge, experience and professional approach. Many were not, resulting in an emerging industry whose skills ranged from completely professional to sadly lacking and downright dangerous!
SOME...... Buyers Advocates, in an attempt to put the" fear of God" into intending purchasers and gain publicity and business for themselves, promote a universal atmosphere of lies and deceit on the part of selling Agents. The media appears always willing to assist and demonize real estate agents.
You have heard it all before...."Under- Quoting", "Misleading information", "Dishonest Dealings"," Deception", etc
Some claim aggression and conflict are worthwhile and necessary "weapons" in successful private sale negations or during a public Auction.. They further maintain purchasing property without their assistance as almost a guarantee that you will be "robbed"...especially at Auction.....Auctions which may have illegal "dummy bidders", conducted by deceitful Real Estate Agents or cunning Vendors.
With very rare exception by the odd "rogue "agent, within the very heavily regulated and monitored real estate industry...."What Rubbish!"
"Dummy Bidding", [now usually only arranged by Vendors without the selling agents knowledge], still exists but is rarely seen and almost impossible to prove, yet easy for an experienced Buyers Advocate to counter and gain benefit for his client.
Without purchasing assistance you probably won't be "robbed", but you could well and truly buy "a lemon."...a very expensive lemon, from a skilled salesperson fulfilling his contractual, legal obligation and working diligently for the other side....the vendor!
I have little respect for this critical and confrontational approach, as the attitude of most vendors, agents and competent auctioneers, when faced with unfair criticism, is one of distain for the advocate, with an obvious detrimental effect on the buyers likelihood of purchasing the property for an advantageous or competitive price, or indeed at all!
Is diametrically opposed and relies on a thorough knowledge of my client's requirements, research, experience, market knowledge and professional respect for a competent vendor's agent, without denigration or castigation, while representing the purchaser, my client's best interests to the full!
So you can, take meaningful precautions to protect your best interests and your hard earned funds.
Purchasing property in Australia, either by private treaty or at public auction, without the same degree of expert assistance employed by the vendor, in the form of a knowledgeable and competent Buyers Agent, "balancing the transaction", can lead to a very one sided equation! And, prove to be very, very expensive!
How expensive? Well overpay 7-10% on a $2,000,000 family home; hold it for 7-10 years when, at a minimum, it should have doubled in value. That's $280,000 -$400, 000, usually tax free, that should be in your account!....... OUCH!
So, if you're the type of person who feels no disadvantage representing himself against a leading QC in Court, performing your own brain surgery, dealing in the stock market without a " tried and true" Stockbroker or piloting your own 787 to London, I probably cant be of service.
But, if your anything like most of us, who realize investing in Real Estate, especially the family home or as part of your superannuation, with its expensive entry and exit costs, not to mention the healthy purchase price, is probably the biggest and most important lifestyle and investment decision you will make, and therefore demands expert research, advice and negotiating skills, then, I most certainly can be of service!