Following on from yesterday’s post about researching areas. What about another avenue. Buyers Agents and Bird Dogs. Funny names, but seriously its a great way to leverage your time and effort and fits into the 80/20 rule.

I have never had to use a buyer’s agent as I have either found the property I am interested in or been able to Joint Venture with someone who can inspect the property on my behalf.

From what I can see from various Buyers’ Agent’s websites they basically find, negotiate and close property transactions on behalf of investors and home owners who for one reason or the other cannot, do not or are not confident in the buying of a house process.

I do however have no hesitation in using one as the time and effort in going to and from property after property can start to drive even the most motivated of us investors up the wall.

The recent WA boom which by all accounts went almost exactly like the one we had here on the east coast in 2003-2005, it would have been a great time to use a buyer’s agent as the travel, time and knowledge would have proved to be invaluable.

I have heard mixed reports of the buyers agents not really doing much more than ringing up from ads in the paper or on www.RealEstate.com.au and charging 1-4% of the purchase price. For those kinds of fees I would want the Stamp Duty Paid as i have spoken about before or a longer settlement that suited me.

I find the thrill of hunting down the property and the agent one of the reasons for investing; as you do never really know what you’re going to get until the phone rings and the seller states their case.

Buyers Agents?

My thoughts for Buyers Agents would be that they may be another person in the puzzle of working out what a property is worth. When the time comes for selling a property and you ask a few agents for what they may be able to sell it for, you may be surprised what a Buyers Agent may have to say about the price.

I am sometimes drawn to the reality that what is on the ‘retail’ market is for all of us including these buyers agents, so why use them if you are a local? I assume that most local users of these guys services are for Auctions or basic negotiations. But they do perform information style services that lead to purchasing property they find.

Bird Dogs?

The weird and wonderful USA term relating to the guy who sells a deal to you for a commision or cut of the profit or sometimes a regular fee. I have had mixed success being a bird dog, but its a greatway to onsell your findings if you dont want the property for one reason or another. These guys just find the deal, they don’t go under contract on your behalf or anthing like that. They simply find the deal and call you to let you know what they have found for you. I know some people who find these guys in newspapers and local advertising material. They usually get a $1000 for finding a great deal (lots of instant equity) and much less if its simply good value deal or something you asked him to find.

These guys are usually investors in training or retired Real Agents who still have the bug or may simply want something to do for a great income. You just have to find enough investors to get enough income to go full time Dogging. I suppose this is where the the Bird Dogs turn into Buyers Agents.

I did say that I like to be an active investor, so I may use a Dog in the future, I don’t see any Buyers Agents in the present future.

I was a happy dog when I wanted to get some quick cash together before investing big dollars.

Don Christie

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