Most buyers understand that a Buyer’s Advocates role is to undertake the work of finding and purchasing a property for them.
The process will usually involve searching through advertised properties or industry contacts and databases to find a range of options, assessing potential properties, and then negotiating the purchase.
What is not as commonly known is that clients who engage a Buyer’s Advocate don’t always need the advocate to search for a property. Clients can bring a property to the advocate to purchase on their behalf.
If a buyer knows of a property on the market that they want to purchase, that buyer can engage an advocate to inspect the property and negotiate the purchase. Referred to as ‘Assess and Negotiate’, this process is usually ‘no win, no fee’, meaning buyers don’t have to pay if the property they want is not secured.
But there are some key things to remember when undertaking this process.
Show no emotion. This goes for any property purchase, regardless of whether buyers engage an advocate.
Gushing over a property to the selling agent and proclaiming how fabulous the location, décor, floor plan are only serves to weaken the buyer’s position come negotiation. The selling agent knows how badly the buyer wants the property, and emotion is a powerful weapon to wield in negotiation.
If buyers have a property they want to purchase and plan to engage an advocate to assess the listing and negotiate a deal, they should not show any emotion during the inspection of the property. If a buyer shows their hand, their position and the advocates will be put at a disadvantage.
Be prepared to burst the bubble. Buyers who source a property have a certain level of understanding or emotional attachment to that listing. Undertaking an advocate assessment may reveal something that the buyer didn’t anticipate. The buyer should be ready for the possibility that the assessment may reveal that the property they have their heart set on may not be suitable.
For example, an assessment may indicate that an investment property may have low capital growth prospects or poor rental yield. Owner occupiers may find that the property is likely to go beyond the figure quoted by the selling agent, and their budget. It is important to remember that the advocate’s assessment is designed to give the buyer as much information as possible in order to avoid making a costly mistake.
Manage expectations. Buyers should also be prepared to keep searching if they miss out on their desired property. The listing may go beyond them at auction, or it may be taken off the market before the buyer can make an offer.
Missing out on securing a property is part of the purchasing process. If a buyer absolutely has their heart set on a particular property and misses out, the disappointment can be all the more bitter. But that doesn’t mean there isn’t another property that is just as good, if not better.
Buyers who miss out on their desired property after engaging an assess and negotiate service can still use the expertise of the advocate to locate another property that fits their criteria. This would be a new arrangement between buyer and advocate and there would likely be associated fees. However the advocate may have current listings that are as good, if not better, than the initial prospect. If not, the advocate will be able to source more options for the buyer. The turnaround between missing out on securing a desired property and buying something else just as good, if not better, may be a matter of days.