Story of 2 Buyers
This is a true story, names withheld.
2 groups of friends with similar budgets started searching for their first homes back in May 2020.
This group became our client, and bought their townhouse after 2 months, in a $750k Eastern Melbourne suburbs, well within their budget. Fast forward a year later, this townhouse is valued at over $950k, and in the 2021 property market conditions, buyers would easily offer $1million for this high quality property.
The second group, chose to buy on their own. They preferred to save the relatively tiny buyer's agency fees.
One year later, they are still searching. Meanwhile, property prices, have, unfortunately not waited for them. With the same budget of $800k, they have no choice but to search in lesser suburbs, 10-15 km further away. To buy in the same area, they would have to stretch their budget to over $1,000,000, a whopping $200,000 (25%) more than their initial budget! Something that is clearly out of their budget.
Group One invested in the convenience of buyers agency services, and enjoyed a $200k returns in capital growth. They grew their asset by a massive 26% in 1 year! In another words, they've saved themselves 26%, just by investing in the services of our buyers agents which resulting in them buying their house a year earlier.
With this extra equity in their property, they are now looking for their next investment property, in preparation for the next property boom.
A classic example of being penny-wise pound foolish? It's not always about how much we spend... It is about the confidence in knowing what you can avoid spending if we had the right help.
Getting a professional property buyer to help with buying can be rewarding.