A Sad Haircut

The Barber I’ve been going to for the last decade has closed its doors, so I had to look around for someone else that was close to home and would do a good job.

After searching Google, I found someone within three minutes from home.

I rang. It was an Italian voice on the phone saying, “yes, come around straight away”.

It turns out that he had only been operating the business for seven months. As I walked in, I noticed that he was open seven days a week and it seemed as though he was the only one there.

It turns out that he had been working for some else for the last fifteen years and thought it was time to launch out on his own—a bold move.

It turns out that he paid $50,000 too much for his premises and was stitched up with a bank loan at 7.5% interest.

He thinks he did well. 

If he had used me as a buyer’s agent, I could have told him that the property he bought had been on the market for nearly two and a half years and they would have sold it at a heavily discounted price if it had been negotiated strongly.

I also would have been able to set him up with a 4.5% commercial loan through a broker/s with integrity. And he would have paid it off in ten years instead of sixteen without having to work seven days a week.

Buyer’s agents are not well known in Perth, and it is disappointing that hard-working buyers don’t know that we exist and could be securing a much better deal than they can by doing it alone.

It is for this reason that I choose to spend my time as a buyer’s agent looking after time-poor people who have limited knowledge of the market, and want someone to negotiate the best price for them and set up their finance in the best way.

Next time you’re thinking of purchasing a property, allow me to represent you as a Buyers Agent. I can help in selecting your property and negotiate the best deal for you. I’ll help make your property purchase stress-free and, quite likely, save you a bunch of money.         

https://buyingperthrealestate.com/buyers-agent/

PS. It was a great haircut!

The Top 5 Benefits of Using a Buyer’s Agent

1. What does it cost?

Most importantly, the first thing to know is that the buyer pays a buyer’s agent in Australia, so there is NO conflict of interest with the real estate agent. Remember, the Real Estate Agent is paid by the seller and therefore his obligated to get the maximum price and best terms for their seller.                                                          

Many say that using a Buyer’s Agent won’t cost you anything. No, buyer’s agents don’t work for free. But the fee that is paid by the buyer to the buyer’s agent is in most cases covered by the experienced buyer’s agent’s ability to negotiate the lowest price and the very best terms. Many of our buyers say, “It didn’t cost anything because you saved us so much! You got the lowest price and best terms that were far more than your fees.” While that’s often true, they are still paying a fee.

2. Your agent will have a finger on the pulse of the market.

Unless you are in close touch with the real estate market, it’s challenging to know everything that is going on in your local market. That is why you hire a buyer’s agent. We have the market knowledge you need to get the best results from your purchase.                                                                                                                         

Buying Perth Real Estate can advise you on what kind of offer is likely to get you the home you want and suggest the best terms with which to negotiate. We give you an informed opinion on where we see the local real estate market heading. Are prices rising or dropping? Are inventory levels going up or down?                                                                                                                                                   

Most importantly, for now, how will Coronavirus effect the real estate market here in Western Australia.

3. The agent will take care of organising private inspections

Once we listen to your requirements, be it for your dream home or your investment, Buying Perth Real Estate uses our 45+ years of real estate experience to select properties that fit your brief. Once you have decided on the properties you wish to inspect, we arrange a private viewing at a time that is convenient for you. We will work around your busy schedule.

4. A buyer’s agent will research the area and neighbourhood

At Buying Perth Real Estate, we have a pulse on the local market and the areas. Often, we will advise against the property selected by our buyer because of problems in that particular suburb or area. Your final choice must continue to hold value and also have the potential to grow in a rising market.  

5. Buying Perth Real Estate will follow your transaction through to final settlement.

We at Buying Perth Real Estate will organise all the pre-settlement inspections and follow the settlement process through to the final settlement day with you.  

For a free consultation, contact me on 0412 926 190 or visit our website at buyingperthrealestate.com.

Clive Elliott, CEO, Buying Perth Real Estate Clive@buyingperthrealestate.com 

Report from Buyer’s Agent, Buying Perth Real Estate, March 2020

“Perth property prices to rise by 6%”, say prominent forecasters.

Perth has been waiting to hear a positive forecast for Perth real estate since 2014!

According to Core Logic’s head of research, Tim Lawless, the 6% increase should follow the .4% increase experienced in December 2019.

Much of the increase will likely come NOW as a result of the Reserve Bank of Australia’s cutting the cash rate to a new record low of 0.5%.

Some major lenders are now offering rates to investors lower than those for owner-occupiers. This is rare.

We are advising buyers who missed out in 2019 to recheck their mortgage brokers as there are better finance deals around than there were in the latter part of 2019.

If you are considering investing in 2020, start the process now, with the present interest rates at the levels they are now, it’s clear that the finance lenders want your business.

From our observations, there is already a gradual surgent of interest in investing in Perth property.

As a Buyer Agent’s, Buying Perth Real Estate role is to seek out the best investment properties opportunities that the market offers.

In undertaking this, we stress to our clients that we always look for property that has the potential for long-term capital growth paired with an immediate rentability factor.

Sometimes it can take a fair bit of searching to find the home of your choice or the ideal investment opportunity, but that’s how we earn our keep.

We are often able to find properties that the average person hasn’t the time or perhaps the knowledge to locate. Armed with our experience, we’re able to give buyers the confidence to make a move into the market. As a result, our buyers are amazed at our results.

In addition to investors, first home buyers, home upgraders, home downsizers, Australians working overseas buyers are all benefiting from our services.

As a footnote, we strongly urge those who are interested in buying shortly to contact us. In the current market, the sooner you purchase more you will save. Prospective purchasers who snooze for much longer are highly likely to lose by having to pay more in a rising market than what they would have by acting promptly.

For a free consultation, contact me on 0412 926 190, or visit our website at buyingperthrealestate.com.

Clive Elliott, CEO, Buying Perth Real Estate Clive@buyingperthrealestate.com 

In 2020, fear is the new black.

Fear is back. With a vengeance. This time it’s not the economy scaring people, it’s called coronavirus.

The OECD says that Australia may be “one of the worst affected economies” from the coronavirus outbreak. At the same time, another headline screams, “Houses to Hit Record Prices in Weeks”. 

We are already seeing Investors entering the Real Estate market in Perth, after shifting their funds from the share market to a safer long term investment in the Property market. As one investor said, “I have lost big time on the share market cause of the Coronavirus  Scare, but my real estate investments are still returning a regular monthly return and the asset is still good.”

With such varied opinions – and in full knowledge that media often ‘hypes’ a story to attract readers or viewers – how are we to act if we are buying in today’s real estate market? And what effect, if any, will the coronavirus have on the Perth property market?

Well, first, what about “No Chinese buyers”! The percentage of buyers from China has long been over-estimated in Australia, especially in the day-to-day housing market. Homes will continue to sell well without foreign buyers.

Generally speaking, prices in the Perth Real estate market are unlikely to be impacted unless the coronavirus escalates severely. 

Perth real estate values are relatively low, and there’s only one way the market should go: Up! 

People still need to buy homes. Indeed, we Western Australians see our homes as sanctuaries. A home is the one place most of us feel safe.

What will or should change, however, are habits. Just as we are now taking sensible precautions in our daily lives, so must we take precautions in our real estate lives.

The one thing that must stop is hordes of strangers wandering through family homes. As buyers agents, our clients give us a detailed brief, and we do all the looking for them. We present them with recommendations, and once a home or property investment is selected, we negotiate the lowest price possible, following the transaction through to settlement. 

This process is how buyers agents in Perth earn their fee.

It’s incredible how few buyers realise an obvious point: There are 10,080 minutes in a week. And yet, when you want to buy a home, there are typically 30 minutes in a week to inspect most home opens with real estate agents.                               

This is where an experienced buyer’s agent in Perth can save you time and money. We’re looking all the time.

With the coronavirus scare, it’s your chance to appoint Buying Perth Real Estate to do all the groundwork for you, so you can enjoy being home safe with the family.

As a buyer, you probably don’t want to inspect homes with hordes of other strangers – many of whom may be coughing and sneezing.

If you see a home you like, you simply advise your buyer’s agent and let them do the groundwork for you.

As to the big question of whether prices will drop because of the coronavirus and whether you should delay your decision, the truthful answer is: no one knows. 

It’s unlikely, but the more significant point is: if you are a home buyer looking for a family home in Perth, what does it matter?

If you are buying a home and upon consulting with your buyer’s agent, you are confident you can safely enter the real estate market. And, if you intend to live in that home for many years, how will it affect you if, after you buy, your home’s value drops? 

While that may briefly concern you, a price drop will make no difference to your enjoyment of your home.

Buyers often ask: When is the right time to buy? The answer to that question, if you are a family home buyer (not an investor) is this: The right time to buy is when you find a home you love that you can afford. Never mind what is happening in the rest of the world. Focus on what is happening in your world. 

As always, of course, in all aspects – financial and health – your priority should be to stay safe. The only thing we have to fear is fear itself.

Buying Perth Real Estate for Wealth Part Three: Negotiating

In our first blog, we discussed the importance of property investment as an integral part of growing wealth. We also advocated appointing Buying Perth Real Estate as your Buyer’s Agent as a fast track to building a personal property portfolio – a portfolio comprising chosen properties with the most favourable terms and potential.

In our second blog on this topic, we covered was location and selection.

As an experienced Buyers Agents, we are continually reviewing all areas of the real estate market in Perth and regional areas for our clients. This knowledge puts us in the box seat to identify the best areas in Perth for buying property in the current market. 

Your first move when engaging our Real Estate Buyer’s Agent Services is perhaps the most important. It is the initial discussion we have with our clients to establish all of the details. We call this ‘The Brief’.

From there, our action is as follows

  1.  We discuss suitable properties, areas, location, and facilities most important to you, whether it is your home or for an investment.
  2.  We then produce a selection of properties that meet your criteria contained in The Brief.
  3. We receive summaries of the properties showing all the details for you. 
  4. We arrange for a private inspection of the properties on your shortlist.
  5. Once the inspection is complete, and you choose your ideal property, we move to the next step.
  6. Preparing the offer to purchase is crucial – we make sure it covers all of the conditions to protect you throughout the negotiating process from offer and acceptance through to settlement of the property.

Now we move onto negotiating.

Negotiating
Negotiation is an art in itself. So many buyers think that it’s a case of merely coming up with a number to see if the sellers will accept it. Invariably, they don’t, and it leads to disappointment and often the sense of loss. 

In the Perth real estate market – the current climate, in particular – there is often room for an experienced buyer’s agent to negotiate property at a much less a figure than the sellers are asking.

Preparing for the offer
We spend a considerable amount of time with the buyer before even selecting the chosen property. The buyers must have a good understanding of their financial arrangements and have prior finance approval if necessary so that their offer can be a desirable offer not only in terms of price but also the conditions and speed of settlement. 

The quicker the settlement, the more negotiation power we have in securing an attractive price on the property accepted. Even first home buyers in Perth can benefit from making these prior arrangements under our direction. Condition of the property needs to be taken into consideration when making an offer, and any minor or major repairs and maintenance need to be counted as an after cost for the buyer. 

The buyer at this stage must also understand the costs of settlement, including stamp duty, conveyancing costs, and adjustments of service costs for the property. All these are adjusted and paid at settlement.

It is essential to understand the seller’s motivation for selling the property and the plans the sellers have after selling – this often makes a significant difference in how the offer is structured and presented.

As experienced buyer’s agents in Perth, we are not only able to search out the best property available to fit the buyers brief, but also negotiate at the best possible price for the buyer.

In Part Four, we will consider the investor who wants to purchase, renovate and flip. We’ll look at some specific examples. Keep an eye out for this blog.

By reading the signs and using our experience, you can tell when the real estate downturn has ended, and when the upturn begins (or began)!

Don’t delay. Contact us for a free consultation. https://buyingperthrealestate.com/buyers-agent/