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How important is a buyer’s agent in a rising market?
In a hotly contested seller’s market, investors are being alerted to the importance of a good buyer’s agent.
How important is a buyer’s agent in a rising market?
In a hotly contested seller’s market, investors are being alerted to the importance of a good buyer’s agent.
Recent CoreLogic stats have revealed a growth in dwelling prices nationally by 2.1 per cent in the month of February, with capital cities, including Sydney and Hobart, growing even faster.
The growing number of buyers is seeing experts such as Commonwealth Bank’s economist, Gareth Aird, predict a 16 per cent price surge, nationally, over the next two years.
While Sydney and Melbourne are tipped to rise by 7.5 per cent and 7 per cent in 2021, respectively, it’s the regions just outside of the two largest capitals that are tipped to outperform.
Moreover, Darwin is predicted to rise by 12 per cent by the end of this year, Perth by 10 per cent, Brisbane by 9.5 per cent and Hobart, Adelaide and Canberra all by 9 per cent.
According to the host of the Smart Property Investment Show, Phil Tarrant, in a rising market, buyer’s agents really prove their value.
“A lot of people will say buyer’s agents are good in markets where there’s more properties for sales because they are good at negotiating,” he said.
“That’s fair enough, and it’s a good point.”
“However, if you don’t buy well and time your buying well in this market, if you miss out on a property for whatever reason and you try again in a month’s time, potentially you’re looking at three, four, five percent, in this market, higher,” he explained.
Pure Property Investment’s Paul Glossop explained that even for industry professionals, the market is tough.
“It’s painful for me because we’ve bought two properties for a client, literally got under contract, gone through building and pest, and got to the point of subsidence in both of them exactly the same thing,” he said.
“We had cracking in brickwork on one corner, it was dropping away. We couldn’t get them to agree to, it was about a 12, 15k rectification.”
“We weren’t comfortable taking away that property for them, and we’ve walked away from it. And in that time, the market’s grown by another 6 or 7 percent,” Mr Glossop concluded.
Tune in to Paul Glossop’s episode on The Smart Property Investment Show to know more about the importance of making smart and informed decisions in the current market.
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