Its My Home : 2015
IT’S MY HOME - Summer 2015 | 43 as the vendor’s circumstances, other comparable properties in the area or potential areas of concern. This can give you the inside track on whether to walk away from a potential headache, or how to secure it under more preferential terms. Buyer’s agents have local expertise. A buyer’s agent will often be an expert in the local area. This information can be imperative in understanding which is the better, more valuable side of the street. They’ll often also know which buildings or streets have a bad reputation, or are harder to sell. For instance, I know a building which looks great on the outside and inside, however it generally takes three to six months to sell a unit in there. It has a bland feeling and there’s often more than one property for sale at a time. The property next door has an older red brick look, however always sells quickly and for high prices. Unfortunately first impressions don’t always make the best investments. It’s not always about price. I often find it’s better to secure a property that ticks all the boxes at a fair price, than a property that has some major flaws that you pick up cheap. A cheap property will always be cheap and will always be hard to sell, however good properties can always fetch a premium. Buyer’s agents help you to focus on what really matters. You can avoid going to auction. While a large number of properties in our main capital cities are advertised as going to auction, there’s nothing stopping you buying beforehand. I often find that at auction, buyers will buy based on what the bank will lend them, not what the property is worth. That’s where you get the headline news of a property selling for $100k or more over reserve. Buyer’s agents often avoid auction for that reason as they want to pay a factual price. You’ve got to spend a dollar to make two. Our parents’ generation was taught to get wealthy by saving money. Look after the pennies and the pennies look after the pounds. However, this generation knows that you’ve got to spend money to make money. While a buyer’s agent may cost you two per cent of the purchase price, they can easily save you five to ten per cent by not going to auction and not paying an inflated, emotional price. If a buyer’s agent helps you choose a property that grows at eight per cent rather than six per cent, that can make hundreds of thousands of dollars difference over the life of the investment. Chris Gray Chris Gray has over 20 years experience in property investing and education. Chris is CEO of Your Empire, which searches, negotiates and renovates properties on behalf of time-poor professionals. He is also host of Sky News Business Channel’s Your Property Empire every Friday, and was Financial Judge on Network Ten’s The Renovators. Chris is additionally a qualified accountant, buyer’s agent and mortgage broker. For more information visit www. yourempire.com.au or www. chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.