6 Big Questions to ask before Hiring a Buyers Agent:

The way property is bought and sold has changed a lot in Australia over the past few decades.

Not only have we seen listings move from shop windows to online portals, but buyer’s agents have become a growing part of the sector, too.

1. Are you licensed?
While real estate legislation differs in each State and Territory, property professionals generally hold a real estate licence.
You can check with your local Office of Fair Trading to see if the person you are dealing with is appropriately licensed.

2. How are you paid?
Professional buyer’s agents work exclusively for buyers and that means they are paid by them, too.
They are 100 per cent independent and have a legal duty to operate in the best interest of their client, which is the buyer.
On the other hand marketers and some so called “property mentors” don’t have such an ethical standpoint and because they’re usually not licensed they don’t have to worry about any legal ramifications.

3. Which associations do you belong to?
That leads us to the next question, which is a sign of the professionalism of the person you are dealing with.
Buyer’s agents and property investment advisers generally belong to their relevant industry associations because they are committed to an ethical sector.
They may belong to the Property Investment Professionals of Australia, like I do, or the Real Estate Buyers Association of Australia, as well as the local real estate institutes, all of which require their members to abide to strict codes of conduct as well.

4. Are you a property investor?
Buyer’s agents are in the business of property investment because they believe heart and soul in using it as a wealth creation vehicle for their clients as well as themselves.
You must ask your buyer’s agent whether they are an investor themselves, because if they’re not how can you be sure that they know what they’re doing?

5. Are you part of a team?
While the buyer’s agency sector is growing and attracting new people all the time, experience is still vitally important.
Your buyer’s agent should be a part of a team that has property investment experience over a number of market cycles and who have a depth of experience and research.
They should not be one man bands working form a mobile phone and PO Box number.
Being part of a team gives them access to a wider range of industry contacts (which often means more off market properties), someone to challenge your ideas as well as better opportunities for on going training.

6. How long have they been in the game?
Believe it or not we’ve had three property slumps over the last decade…
Buying Renting Apartment Or House, Buyers Of Real Estate Ready To Conclude A Deal, Family Couple Shaking Hands With Realtor After Signing Documents For Realty PurchaseThe 2009 downturn was caused by interest rates rising to 9%.
The 2012 slump was again caused by rising interest rates – they peaked at 8%.
Then there is the current credit squeeze induced slump
But many of today’s buyers agents haven’t experienced downturns
Take the recent price surge in Sydney – if your potential agent only has the most recent cycle under their belts, then maybe their success was because a rising tide lifts all ships.