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Is it worth using a buyer's agent?
38 Plays21 hours ago
Want to save $30,000 on your next home purchase? This episode reveals the exact step-by-step playbook buyer’s agents use—so you can do it yourself. From crafting a sharp buyer’s brief to uncovering off-market deals and negotiating like a pro, you’ll learn how to confidently secure the right property without paying hefty agent fees.
Ready to explore your options? Get a free assessment from the experts at Hunter Galloway: huntergalloway.com.au
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Transcript
Be Your Own Buyer's Agent
00:00:01
Speaker
Don't waste $30,000 on a buyer's agent. I'll walk you through the exact tools, strategies, and step-by-step process they use so you can become your own buyer's agent and save thousands.
Introduction to First-Time Homebuying in Australia
00:00:14
Speaker
Welcome to the buying your first home podcast, your personal guide through the Australian housing market. Here we tackle the big questions and the small details that come up when buying your first home. From financial prep to finding the right neighbourhood, we're here to ensure that you've got all the knowledge at your fingertips. So let's take the first step towards unlocking the door to your new home.
Creating a Buyer's Brief and Mortgage Eligibility
00:00:39
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Step one, setting your sale. The first step to becoming your own buyer's agent is by creating your buyer's brief. This brief clearly defines the characteristics of the home and the suburbs you're considering buying in.
00:00:52
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At this stage, you'll have already spoken to a mortgage broker and have a clear idea around your eligibility and budget. Your buyer's brief should include all your non-negotiables, and clearly defining your needs will help you find the right suburbs.
00:01:04
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You can download your free copy of the buyer's brief template at huntergalloway.com.au forward slash tools. Step two, being realistic. Now, the next step is to check whether the suburbs on your list actually fit within your budget. Start by visiting realestate.com.au forward slash neighborhoods.
00:01:23
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Here, you'll find useful insights based on the past year's sales data, including median price and growth trend. Let's say you're after a four-bedroom property in Albany Creek with a budget of $800,000, but The suburbs median price is now over a million dollars.
00:01:38
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Doing a check like this will help you focus on areas and suburbs that align within your budget. This tool also gives you an idea of how quickly prices are rising. As an example, if the growth rate over the past 12 months is 12%, it means an increase of about 1% each month.
00:01:54
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With a median price of a million dollars, prices are effectively going up by roughly $10,000 each month. And since your pre-approval typically lasts for 90 days, it's wise to include a buffer.
00:02:05
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So in this example, a buffer of between $30,000 to $50,000 can help you remain competitive for the duration of your search.
Using Real Estate Data for Budgeting and Market Analysis
00:02:13
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Step three, research. At this stage, you'll have a short list of suburbs. Now it's time to look at recent sales data.
00:02:20
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Jump onto the sold section of realestate.com.au. Now type in the suburb, then enter into all the details you're looking for, like the number of bedrooms, bathrooms, car spaces, and maximum purchase price.
00:02:32
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Once this is all set, search the results by newest first. This will give you a real sense for the types of homes that are selling for currently and how far your budget will go in the given suburb.
00:02:44
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It's a great way to confirm if the suburb that you've chosen fits your expectations. For example, you might find that homes in your price range are beautifully renovated. or you might realize they need some serious work.
00:02:56
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This process will help you quickly assess whether a suburb's offering the kind of properties you're genuinely interested in. Go through the same process for each suburb on your list and reduce your shortlist to no more than three targeted suburbs.
00:03:10
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Step four, pitfalls. The main goal we're looking to achieve is to secure a property off the market. We'll cover the exact process shortly, but buying off market means that you're the only one negotiating for the property and with no competition.
00:03:25
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And this gives you a serious edge when it comes to landing the right property at the right price. The key is to avoid auctions and to steer clear of properties that have been sitting on the market too long. Buyers agents often advise their clients against going to auctions.
00:03:39
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It's because auctions are designed to generate buzz and competition. They attract buyers from all price points, and this tactic is known as underquoting. While it's technically illegal, it's a strategy that's ubiquitous.
00:03:53
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The aim is to stir up a bidding frenzy, creating a sense of urgency and scarcity that pushes prices sky high. Let's be honest, it's easy to get caught up in the moment.
00:04:03
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The energy of the crowd, the auctioneer roaring, it's exciting. Getting swept up in it all means you'll be paying more than you had originally planned. It's worth noting that auctions are also unconditional and means that once the hammer falls, it's yours and there's no backing out.
00:04:19
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Now, with properties that have been on the market too long, it might mean that the owner's price expectations are unrealistic or it could mean that there's something wrong with the property, maybe issues with the building and pest.
00:04:29
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Buyer's agents are always after fresh listings and off-the-market opportunities. This is exactly what we're looking to do also. We're going to copy their playbook and avoid the same traps.
Communicating Needs and Building Agent Relationships
00:04:40
Speaker
Step five, articulate. Now it's time to revisit your buyer's brief. One common mistake is by having too many non-negotiables. At this stage, let's go back to your buyer's brief and narrow down your non-negotiables to no more than three.
00:04:53
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Why? Because we need to tighten up your criteria. This will help you clearly define what you're looking for and make it really easy for you to communicate this to others. especially as we move into the next phase of finding properties off the market.
00:05:07
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You should be able to clearly articulate the type of home that you're after in just one or two sentences. Keep it simple, keep it short, keep it specific. For example, I'm looking for a single-story two-bedroom house on a block larger than 400 square meters in one of these three suburbs.
00:05:24
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It's clear, easy for anyone to understand and remember. The shorter and more focused you brief, the better. Step 6. Leverage Let's talk about leveraging other people's time.
00:05:35
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Buyers agents often promise to find new properties off the market, but here's the truth. They're not the ones door-knocking across every suburb you're interested in Why? Because it's incredibly time-consuming and, frankly, ineffective,
00:05:48
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to convince someone to sell their home against their will. Instead, buyer's agents use leverage, specifically the time and effort of real estate agents. Top real estate agents are extremely active.
00:06:00
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They're dropping flyers, making calls, and checking in with homeowners that are potentially thinking about selling. Buyer's agents tap into this hustle. They build strong relationships with local real estate agents and give them a clear brief on exactly what their clients are looking for.
00:06:15
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It's a win-win. Real estate agents love having motivated buyers lined up because it helps them win listings. And sellers love real estate agents with big databases of ready-to-go buyers.
00:06:27
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And here's where things get very interesting. Once a real estate agent secures a listing, it can take between four to six weeks for the property to actually hit the market. The seller might need to declutter, style a home, and book in photography, none of which happens overnight.
00:06:43
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This delay is your opportunity. Buyers agents use this window to get in early before the property hits the online listings like realestate.com or domain.
00:06:54
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Why? It's because this is how they snap off off the market properties with zero competition. No bidding wars, no stress, just a clean run at securing the property quietly before anyone even knows it's available.
00:07:08
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And you can do the exact same thing. It starts by building relationships with local real estate agents in the three suburbs you've shortlisted. The best way to do this is by going to every open home in the area and be friendly, ask questions, and most importantly, know your brief.
00:07:24
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You need to be able to clearly explain what you're after. It's because when these real estate agents win a new listing and it's not ready to hit the market, guess who's getting the early invite? This is the exact strategy buyers agents use and now it's yours too.
00:07:39
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No more missing out. No more chasing listings that everyone has seen. Flip the script and get ahead of the pack.
Balancing Price and Terms in Offers
00:07:46
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Step 7, negotiate. Now it's time to make your move. Negotiation isn't just about offering more money, it's about being strategic.
00:07:53
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It comes down to finding the right balance between price and terms. But before you even start the conversation, you'll need to know a few things about the property. When was the property last sold and for how much?
00:08:05
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What's the current land value? Why is the owner selling? And is a seller an investor or are they currently living in the property? These are the details that will give you a critical insight and they're usually easy to find by asking the real estate agent or searching online.
00:08:20
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And by now you should be a suburb expert. You've seen what's selling, for how much and how fast. This will give you the confidence to approach your negotiation with clarity and purpose. Now, when it comes time to putting an offer in, start by tailoring it to what the seller actually cares about.
00:08:37
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For example, if the vendor is buying another home, settlement might be more important than price. In these cases, they might be happy to accept an offer that's slightly lower, but with a longer settlement, say 90 days instead of the regular 30.
00:08:53
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is because it gives them breathing room to line everything up. And this is what negotiation is really about. Understand what matters to the other side and shape your offer around it accordingly. If you uncover that price isn't their top priority, you've got a real opportunity to negotiate smarter.
00:09:09
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And also keep in mind the market conditions. If homes are selling very quickly, now's not the time to play hardball. Lowballing in a hot market is a fast track to miss out on the property. In the end, it comes down to reading the room.
00:09:23
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Your earlier research will guide you in making the right call at this stage. Step eight, your offer. When it comes to making an offer on properties, I always recommend doing it properly and complete a formal contract to sell.
00:09:35
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The exact process will really depend on the state you're buying in and it's always best to get guidance from a con conveyancer. Most states' contracts will allow you to include important clauses like a finance and building a pest inspection clause.
00:09:47
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Even if you're pre-approved, I still recommend including a finance clause until you receive a formal approval from the bank, nothing is guaranteed. When submitting your offer, avoid using round numbers like 610,000 because it can give the impression you've still got a little wiggle room. Instead, try offering something like 613,500. It signals you've stretched your absolute limit and it's your best and final offer.
00:10:12
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Lastly, try to tighten up your conditions where possible. For example, a shorter time frame for your finance can make your offer more appealing. Just make sure you check with your conveyancer and mortgage broker before you adjust anything.
00:10:26
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Step nine, be willing to walk away. Once you've made your offer, it's easy to get emotionally attached to the property, especially if the property is the type of home you've been dreaming of.
00:10:37
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But one of the most important and powerful negotiating tools you have is your ability to walk away. You need to remind yourself that this isn't the only property on the market and it won't be your last opportunity either.
00:10:49
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That's why it's smart to have a shortlist of properties you're seriously interested in, not just one. That way, if the deal doesn't come together, you've always got other options to look at. If the seller's countering with a price that pushes you past your comfort zone,
00:11:02
Speaker
Pause, take a breath, and remember you don't need to chase it. House hunting is a long game. And just like waiting for a bus at a busy bus stop, if you miss one, there's always another one on its way.
Comparing Buyer's Agents vs. DIY
00:11:15
Speaker
What does a buyer's agent do? Hiring a buyer's agent can cost you up to 3% of the purchase price. On a million dollar home, that's about a $30,000 fee. But what exactly are you getting for what you're paying for?
00:11:27
Speaker
A buyer's agent, also known as a buyer's advocate, is a licensed real estate professional who represents you, the buyer, throughout the purchasing process. Unlike a selling agent who works for the vendor, a buying agent is there to help you find, evaluate, and secure the right home at the right price.
00:11:45
Speaker
So what do they actually do? Off-market properties. One of the biggest selling points of a buyer's agent is their ability to source off-property markets. But here's the truth. You don't need a buyer's agent to access these types of properties.
00:11:59
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As you learned in step six, building strong relationships with local real estate agents and having a clear, sharp buyer's brief means you'll be able to get the same result without the $30,000 fee.
00:12:12
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negotiations Buyers agents are skilled negotiators. They know the game and understand the tricks and can spot a bluff a mile away. But guess what? So can you. With the right preparation, researching recent sales, understanding the vendor's motivation, and knowing your limits, your negotiation can be just as effective. In fact,
00:12:32
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you're now equipped with the exact same playbook buyers agents use to secure the deal. And if the deal doesn't feel right, you walk away. Process management. Buyers agents often work with busy professionals or people that are buying interstate.
00:12:46
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They handle all the legwork, attending inspections, coordinating building and pest, dealing with conveyances, and making sure everything runs smoothly from your offer to settlement.
00:12:57
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Essentially, they're your project manager. But if you followed each step, you're more than capable of managing the entire process yourself. The key is by staying organized and having the right people around you.
00:13:10
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Buyer's agents can be valuable, but they're not essential. You now have the exact roadmap to follow from setting your brief to shortlisting your suburbs, negotiating like a pro. You've got everything you need to take control and save yourself tens of thousands in the process.
The Role of Pre-Approval and Speed
00:13:25
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Preparation. Your goal is to find an off-market property and preparation is critical for this. When you find the right home, things are going to move very quickly. And in most cases, you'll only have a few short weeks to get everything sorted, which is why having your pre-approval organized in advance is very important.
00:13:43
Speaker
A fully assessed pre-approval means a real person, that is the bank's credit assessor, has thoroughly reviewed your documents and formally pre-approved your home loan. With a solid pre-approval, you can confidently place offers with seven-day finance clauses.
00:13:59
Speaker
This puts you in the strongest possible position to secure a property quickly and take it off the market before anyone sees it. The best way to get your pre-approved sorted is to speak with a great mortgage broker.
00:14:10
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A good mortgage broker will help you clearly understand your borrowing power, compare multiple lenders to find the best fit, and help you understand all the buying costs. guiding you from start to finish.
00:14:21
Speaker
Many lenders automate their pre-approvals, but it's best to avoid these because they're not worth the paper they're written on. That's exactly why having an experienced mortgage broker is invaluable because they'll ensure that your pre-approval is rock solid and worth the paper it's actually written on.
00:14:38
Speaker
When buying off the market, speed is essential because you've got a very narrow window and any delays will cost you the deal. And here at Hunter Galloway, we're mortgage brokers that specialize in helping home buyers across Australia.
00:14:50
Speaker
So if you're looking for a fully assessed pre-approval, we can help completely free of charge. Get in touch with us by visiting us at huntergalloway.com.au or call us on 1300 088 065. And until next time, I'll catch you then.