Fake buyers agents are becoming more and more popular in Sydney. And these ones are taken advantage of, especially the first-time buyers who know close to nothing. In some cases, they may have their way with experienced real estate investors who don’t know the right things to do. You may have noticed some of the signs or encountered some of them. But after reading this article, you will be able to spot them a mile away when you see the signs.
According to the management authority, the real estate sector requires a high level of expertise. And not everyone claiming to be a newcastle buyers agent are qualified for the job. Some of them are simply mouthing what they have no idea about. At the same time, it may not always be obvious to tell the difference except you subject them to these litmus tests. The result will tell you if you are dealing with a rookie who has not even undergone any training.
Before you commit your finance to their hands for their services, you will need to consider the questions we raised in this article. Generally, a poor buyer’s agent has no idea about due diligence. He is primarily concerned about the money he will make from a deal rather than satisfying the Buyer. He fails on a fiduciary duty to clients to understand the job’s ethics; he just wants to do away with all these and keep the money. Click here for a complete buyers’ agent agreement.
Let us consider some of the crucial questions you must provide answers to;
Vital questions to test the genuineness of a Buyers Agent in Sydney
- Does this agent provide genuine independence in making decisions in rendering perfectly satisfactory service to me as a buyer? This question is not entirely about whether the agent works with a buyer’s agency in Sydney or an independent agent. What is important is that will he always have to defer decision-making to another, or he can provide solutions?
- Is there a direct advanced fee a buyer is supposed to make before proceeding far with the job at hand? Check if there is any fixed price the negotiation will require you to pay and double-check them. In addition, do they earn commissions, kickbacks or fees from any third party in the equation?
- Is there any in-depth area of expertise with the Sydney buyers agency? Examples of such regions are Vendor’s advocacy and Buyer’s advocacy. Or do they have a practical experience in any of these fields?
- Has the agent worked in the industry before, with relevant experience with a senior real estate agent? There must be less than 2 years for such expertise. In addition, your Buyer’s agent has a state license to operate in Sydney, excluding obtaining certification by bypassing essential training or taking advantage of local legislation.
- What do their social media profiles say about them, especially their LinkedIn? It will even give you an idea of who they used to be before being an agent if they have lied about their experiences. This is also another way to detect it. If you see any inconsistency with all the online records they may have, please run and avoid them.
Questions about their Experience
- Does your real estate agent have an investment qualification to work with investors?
- How will you describe their disposition? Are they about a sales approach, making all efforts to sell to you, or is it more like your consultant? The latter approach is better and can cause you to be freer with him. These consultant agents are interested in your sales experience and are not in dire need of your money. In addition, they are better at satisfying your needs through effective customization strategies specifically for you.
- Is he thinking like a regular sales agent or more like an advocate? An advocate is the one that negotiates with the best interest of the home investor or Buyer. On the other hand, the sales agent is persuading you with every fibre in his veins for you to just buy.
- Any buyers agent who claims to be an expert with many years must demonstrate that experience. So ask them to give you the detail of a property they successfully sold, sale commission, and overall experience in their roles.
- Do they pretend to be a buyer’s agent but charge you a management fee before seeing the new property? It is wrong for an agent to demand a commission when the sale has not been made. A professional agent must understand this illegal action well, except something is fishy.
Questions about the real estate industry and market
- Is the buying agent persuading you for an off-market property but will still charge you for it? If the property is not on sale, why get all the benefits? That is unethical. So, you should contact the local selling agents to verify the property and its demands.
- Are they full-time house agents in the industry or part-time? You want a home advocate who is 100% available and ready to provide every needed service. A part-time real estate buyer’s agent may not be readily available when you need to discuss something vital with them. Without a full-time commitment to the business role, how can you be sure that he can give you a full-time commitment to the business deal?
- When is their business website built? The earlier the business website, the lesser the experience of the agent. For instance, a website from 2018 to 2022 simply indicates that the agent is inexperienced or a rookie at best. However, being a rookie is not an indication of a lack of effectiveness. It only means that it may be difficult for both of you to understand certain things in the market.
- Fake real estate buyers agents are particularly interested in using KPIs to promote their imagery and business brand. Certain statements on their websites about thousands of projects and completed deals within a short period may be impracticable.
- What do their statistics look like? Any buyer’s agent using statistics to deceive you without allowing you to make your decision with free will is not to be trusted. It is not wrong to use statistics; I do too. But I must not use it to manipulate my clients.