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Why Using a Genuine Independent Buyers Advocate Matters - Power of Independence

Updated: Sep 17

Buyers advocates seems to be everywhere at the moment. And many are giving buyers advocates a bad reputation because sneaky sales agents or marketing agents are calling themselves buyers agents, claiming to help you to build wealth and retire early.

Fake buyers agent, and the importance of real independent buyers advocates

When it comes to navigating the complex world of real estate buying and selling, having a trusted advisor by your side can make all the difference. However, not all buyers advocates are created equal. It is very critical to know who you can and should trust in the real estate world.


The importance of using a real, independent buyers advocate cannot be overstated. In this article, we will explain the significance of independence and why it should be a top priority when seeking professional assistance in your property buying journey.


The Fake Buyers Agents or Fake Buyers Advocates

For years, this image of Buyers Advocates or Buyers Agents has been tarnished by sneaky sales agents or marketing agents calling themselves buyers agents, and helping you to "build financial wealth" for early retirement. However, when you dig further into their investment strategies, business model, and even business ownership structure, an experienced buyer's advocate will quickly notice they are nothing more than sales agents and marketing agents selling you what they have been told to sell. You are buying what they have to sell, not what you need.


Such fake buyers advocates usually goes by catchy names, and are based out of swanky offices. Hey.. the fees and commissions from their past clients and developers paid for this...


How will you benefit from the services of a Buyers Advocate?

Let's step back a little and let us explain how genuine Buyers Advocates can help with your property purchase plans. With genuine buyers advocates who have nothing to sell and just want to help, the benefits are immense:

  1. Market Knowledge and Expertise: One of the primary reasons to consider a buyers advocate is their unparalleled market knowledge and expertise. These professionals are immersed in the real estate industry, keeping a pulse on current market trends, property values, and emerging opportunities. By tapping into their extensive knowledge base, buyers advocates can provide valuable insights and guidance, helping you make informed decisions throughout the buying process.

  2. Time and Effort Saving: Searching for the perfect property can be an incredibly time-consuming endeavor. From scouring listings to attending open houses, the process can quickly become overwhelming. A buyers advocate streamlines this process by conducting a comprehensive search on your behalf. They filter through countless properties, presenting you with only the most suitable options that align with your requirements, saving you valuable time and effort.

  3. Access to Off-Market Opportunities: Some of the best property opportunities are not always publicly listed. Buyers advocates have access to a vast network of industry contacts, including real estate agents, developers, and property insiders. This network enables them to tap into exclusive off-market opportunities that may not be accessible to the general public. By leveraging these connections, buyers advocates can present you with unique options that others may never even know existed.

  4. Skillful Negotiations: Negotiating the terms of a property purchase can be a nerve-wracking experience, especially for those unfamiliar with the intricacies of the process. Buyers advocates are skilled negotiators who can act on your behalf, ensuring you secure the best possible purchase price and favorable terms. Their expertise in handling negotiations can make a significant difference in the outcome, ultimately saving you money and providing peace of mind.

  5. Objective and Unbiased Advice: Emotions can often cloud judgment when it comes to buying property. With their objective viewpoint, buyers advocates provide unbiased advice based on market data and their understanding of your specific needs. They prioritize your best interests, helping you avoid common pitfalls and making decisions that align with your long-term goals.

  6. Post-Purchase Support: The role of a buyers advocate extends beyond the purchase transaction. They can assist with various post-purchase tasks, such as coordinating inspections, guiding you through the settlement process, and connecting you with trusted service providers for property management, renovations, or any necessary repairs. Their ongoing support ensures a smooth transition into your new property, alleviating any additional stress or complications.


Now that you have a better understand of what a real buyers advocate can do for you, let us delve deeper into the world of buyers advocates. Within the world of real advocates, you might have heard of:

  1. larger, well known specialised buyers advocacy businesses, and you might have heard of

  2. some Sales Agencies running their own "Buyers Advocacy" business, and then, you have

  3. the smaller independent, lesser known boutique brands in the market.

The above can be briefly summarised into this table:

Large Buyer Advocacy Business

Sales Agency linked Buyer's Services

Boutique Independent Buyers Advocates

Size of Business

5 to 20 employees

unknown - some sales agents floats between a sales agent role and a "buyers agent" role

typically under 5 employees

Fees

Usually around 2-3% of property price

Free (as they are earning commission from your purchase)

Fixed price, or Usually between 1-1.5% of the property price

Fees are paying for

Agency takings. Office Space. Branding and Image. Free education seminars. Licencing, Software and Data Licenses, Insurances.

Office Space. Branding and Image. Takes a cut of commission from vendor

Branding. Licencing, Software and Data Licenses, Insurances.

Skills

Lower fee paying clients are usually being serviced by new, trainee buyers agents being trained by the senior staff. Expect to pay the full 3% for experienced buyers advocates.

Predominantly Sales Skillset. Most are sales agents playing a part time role to "help" buyers.

Newer agencies are usually being runned by new buyers agents with little to no experience. The more established agencies (more than 5 years) would be personally managed by their director or principal Buyers Advocates.

Types of properties you can be recommended

Listed properties, off-market properties

Properties listed by related agencies only.

Listed properties, off-market properties

Negotiations

Genuine negotiation. Not afraid of severing relationships with the vendor or sales agents.

What negotiation? Their commission is linked to how much you pay for the property. And as seller agents for the vendor, they need to protect the interest of the vendors. They might give you a "discount", as they have already included this "discount" in their inflated quoted prices, but that is about all you will get.

Genuine negotiation. Not afraid of severing relationships with the vendor or sales agents.

Approach

Pushy. Has monthly performance and closure targets to meet.

Very pushy. High-pressure sell tactics usually used to ensure they meet their very demanding sales targets.

No targets to meet, other than ensuring you buy the right property.


Importance of Independent Buyers Advocates

Independence is a choice. Being independent is not easy. It is 5 to 10 times tougher running a truly independent Buyers Advocate Agency. And without the integrity and passion of wanting to do the right thing to genuinely help property buyers, many new buyers advocates eventually turned to the dark side of sales and fake buyers advocacy with the lure of easy money and lucrative commissions.


The secret with Sales Commission

If you had not come across this blog, and if I were to ask who is paying the sales agent their commission when you buy a property? 99% of the buyers believe the commission are paid from the seller. This is where you are WRONG. Very wrong.

Many buyers wrongly believed that they need not care about these commissions. Little did most realise, when the vendor or seller sets their property up for sales, the prices they see include the commission to be paid to the sales agents.

It works like this. The vendor has a price in mind. Then they add the marketing costs, sales agents commission on top of that, to determine the price they want to achieve. IE, The property's selling price buyers see includes the sales agents commission. So, buyers NEED to understand, if they are buying without a genuine buyers agent on their side, they are 90% likely to end up overpaying.

This is a gray area which sales agency backed buyers agents are playing in. Very often they claim they are helping buyers for free. It's not. they are receiving commission, either from the developer or sharing it with other agents. And by them receiving a payment from the seller, they are sales agents. They are required, by law, to ensure the seller is protected, ensure they fetch the best price FOR THE SELLER. They no longer work for you, if they're paid by the seller.


So, with everything stacked against the buyer, who can buyers turn to? The genuine Buyers Advocates.


How are Genuine Independent Buyers Advocates different?

When you pay for a buyer's advocate service, you are ensuring the buyers agent is working only for you. And they are legally required to look after your interests in the property purchase. There's no if and buts. It is written the the real estate legislations.


With a genuinely independent buyers advocates you get:

  1. Objective Guidance and Advice: Independent buyers advocates operate without concerns for conflicts of interests. They work, focusing solely on your best interests. Their unbiased advice helps you find the right property at the right price, without any external influences clouding their judgment. You are buying something you want, not something they need to sell.

  2. Unparalleled Advocacy: Independent buyers advocates are your dedicated advocates throughout the entire buying process. They work solely on your behalf, looking after your needs, preferences, and objectives. Their loyalty lies with you, allowing them to negotiate fiercely to secure the best possible deal. With their expertise and commitment, they act as your expert ally, protecting your interests and ensuring a successful outcome.

  3. Access to a Broader Market: An independent buyers advocate has access to a wide range of properties on the market. They are not limited to a specific stock that the agency is selling, or biased towards certain sellers. This means they can source from all available options and present you with a comprehensive selection tailored to your requirements. Their extensive network and industry connections provide access to a broader market, including off-market opportunities that may not be accessible to others.

  4. Extensive Market Knowledge: Independence allows buyers advocates to provide objective insights based on their comprehensive market knowledge. They continuously analyze market trends, property values, and emerging opportunities. Their deep understanding of local neighborhoods, zoning regulations, and future developments can be invaluable in guiding your decision-making process. With their expertise, you can make informed choices and seize opportunities that align with your long-term goals.

  5. Transparency and Trust: Choosing a real independent buyers advocate means transparency and trust are at the forefront of your relationship. You do not need to second guess their hidden agenda. You do not need to wonder if they have any conflicting in interests. Because there are none. Independent professionals prioritize clear communication, keeping you informed every step of the way. They provide honest assessments, ensuring you have a realistic understanding of the market and property values. Their commitment to transparency builds trust and fosters a strong partnership, empowering you to make confident and well-informed decisions.

  6. Personalized Service and Attention: With an independent buyers advocate, you receive personalized service and undivided attention. They take the time to understand your unique needs, preferences, and financial situation. And they tailor their approach and recommendations to your specific requirements. Unlike the "wealth creation" marketing agencies, who simply sells what they have as your solution. They can identify properties that truly align with your vision and maximize your satisfaction. Their dedication and commitment to your success set them apart, elevating your experience throughout the entire buying process.

  7. Lower fees: Independent buyers advocates save costs by not paying for to brand royalty or maintaining a physical office. They don't organize expensive "free investment seminars." This cost-saving approach allows for lower fees compared to brand name buyers advocates. Such insurance, marketing and branding overheads adds between $5,000-$8,000 per client. And this explains why brand name buyers advocates tends to charge between $5,000-$20,000, more per purchase.

Genuine Independent Buyers Advocates are Protecting Buyers Purchasing Interest

Choosing a real independent buyers advocate is crucial for a successful and fulfilling property acquisition journey. Their objectivity, unwavering advocacy, and extensive market knowledge empower you to make informed decisions and secure the best possible outcome. By placing your trust in an independent professional, you gain a valuable ally who works solely in your best interests, ensuring that your buying experience is transparent, personalized, and ultimately rewarding.

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As Buyer's Advocates, we are a coach, a mentor and a helping hand to the discerning property buyer. We are not here just to sign up a client and complete a transaction. We take you through a journey,

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