Buying, The Smart Way
With 30 years of experience as a real estate agent I have come to the conclusion that there are better, more convenient and less costly ways to transact property, for both buyers and sellers, but more so for buyers in particular. In the traditional model the process happens like this:
- In the vendor’s bottom line, he or she factors in the cost of the agents commission. Although this cost is hidden, it is funded by the buyer, being a calculated factor in accepting or rejecting an offer.
- The buyer has no say into what the agent charges the vendor in the way of commission, marketing charges and or other fees which the buyer ultimately funds.
- The agent does (or should) work in the best interests of the vendor, and thus by definition, against the best interests of the buyer, who actually funds the whole show.
- Due to the property being publicly advertised for sale or auction, a buyer is often placed in a position of having to compete with others to make a purchase and sometimes can pay thousands more to out bid other potential buyers or to allay the fear of being out bid when no such threat exists.
- It is the vendor who enjoys the most benefit from the agent’s expertise.
However it does not need to be this way, just imagine
- You as the buyer have a representative who’s industry expertise benefits you not a vendor at your expense.
- You are able to negotiate the transaction fees as opposed to paying someone else’s.
- Your representative proactively pursues properties that fit your criteria.
- Your representative creates an environment where you don’t have to compete with other buyers to make a successful purchase.
- Your representative creates an attractive environment for sellers to sell their properties without having to pay any fees whatsoever, without signage and without opening their home to unsuited and unqualified buyers for months on end.
- Your representative can deliver measurable savings with new projects and house and land purchases all over Australia.
Property Advice, Advocacy and Services
Buying a property is one of life’s biggest investments so its very wise to apply appropriate thought and careful due diligence.
It has been reported some years ago by a major Australian professional builders representative body that something like 40% of the price of a house/land package results directly from impositions from the various tiers of government including local, state and federal. Stamp duties on established property create a huge windfall for government but sadly this is not the only one. Add the burden of financing these imposts and adding profits for the Banks, Developers, Builders, Lawyers and Estate Agents and Marketing Groups and its little wonder affordability is an issue.
A number of factors combine to fuel the affordability issue, not the least of which are government policies that have combined to artificially inflate the growth rate of property values. Artificial is the key word here and while this term has created the overly inflated pricing at current levels it could just as easily be the reason for a collapse, buyers beware. Andrews Property Consultants are of the opinion that although buyers generally enjoy the upper hand in real estate transactions they rarely realize the benefits of their position and tend to get a pretty raw deal, so to whatever extent we are able, by means of providing advocacy, advice and strategies for people buying or selling, we seek to level up the playing field wherever possible.
Besides providing low and in some cases no cost advice in real time to those who seek it, there are other measures that we have identified to help people avoid the rip off’s and the many various traps that are inherent in the real estate, building and property investment industries. This particular goal is achieved by means of educating people in every aspect of the way these industries work, all offered from an industry insider’s perspective, provided by an agent with over 30 years of real life sales and acquisition experience.
Sign up below for our fortnightly articles on our inside real estate series where all matters involving real estate including market conditions, industry practices and various other factors, including relevant government policies that affect the value of real estate are forensically examined.
The Power of Buying Groups
A critical aspect of being able to negotiate successfully is to do so from a position of relative power and buyers have a lot at their disposal. If no one is buying, then naturally enough, no one is selling which can be a major worry for industry professionals like land developers, builders, estate agents and finance people. Unless people are buying these professionals have very real problems, so a realization of the inherent power a buyer commands is a good start in achieving value for money quite regardless of what you are buying. Buyers, especially those who are part of an effective and large buying group can increase their purchasing leverage commensurate with the number of people registered in a buying group and its growth rate. It really is a case of “the more the merrier” because property professionals cannot ignore the power of numbers.
The existence of a large buying group probably has very little impact on the established home market but is potentially enormous on new land developments and built form builder product where sales volume is critically important. It is conceivable that a very large group could perhaps arrive at the point of securing substantial off market discounts for or wholesale pricing for members, effectively cutting out the middle men who have been doing very nicely at the expense of the uninformed buyers.
A larger membership base potentially affords the possibility for the purchase and listing of entire projects on an exclusive basis for members in a transparent and extremely low cost transactional environment.
See the forms below if you wish to raise your buying power by being a part of a group relating to both building a home or buying into a project anywhere in Australia, completely free of charge or obligation andd certainly feel free to contact me for free advice on strategies for buying or building, in an economically sustainable way.