SEVEN SECRETS FROM A SYDNEY BUYER’S AGENT

H O W T O S AV E T I M E A N D M O N E Y

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

A N O T E T O S Y D N E Y ’ S P R O P E R T Y H U N T E R S

Buying a house is one of the most exciting

– and stressful – purchases you can make.

I’ve supported hundreds of property hunters

through this process and spent years finding

ways to make buying the right property

easier. I’m also well aware of common

mistakes that end up costing people time

and money.

So I want to share some of the most valuable

things I’ve learned with people like you –

buyers and investors who want to make the

most of Sydney real estate.

Sydney is home to one of the most

competitive, fast-paced and occasionally

ruthless real estate markets in Australia.

In 2016 alone property prices rose 13.1%

according to CoreLogic. That means they

rose a whopping 67.3% over the five years

between 2011 and 2016.

No wonder then, that for many people

looking to buy their first or next property,

it can feel like there’s simply no way in….

But there is. So long, of course, as you’re

willing to take concrete steps to be more

prepared, more informed and more

negotiation-savvy than the other property

hunters out there. In this guide, I’ll show you

how to become all of these things and more.

So, why am I giving away my buyer’s secrets?

I’m hoping this information will make your

property search that much easier. I’m

regularly surprised by how many people

don’t put the principles I’m sharing here

– many of which should be common sense –

into practice. Instead, they get carried away

by the emotion and stress of the search.

And of course, I’m also hoping you’ll

get in touch with the The Buyers Agency

Sydney team for our expert advice. After

all, our clients rely on our experience,

our connections with agents in exclusive

areas and our direct access to off-market

deals. We’re specialists in Sydney’s Eastern

Suburbs and Lower North Shore and we

cover every step of the process – from

initial research to managing inspections,

negotiating the best price, settling contracts,

advice on renovating and tracking the value

of your property over time.

So take a few minutes to read these tips.

It could save you months of heartache and

many thousands of dollars.

Wishing you success in your property search,

Rodney P McLoughlin

Director, The Buyers Agency Sydney

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

My first tip is probably the most

straightforward: prepare your finances.

It may seem obvious enough but you’d be

surprised at how many people show up

to auction without having first made that

all-important call to their bank manager or

mortgage broker. Worse still, many don’t

know how high their bidding can go – and

that can lead to serious financial difficulty

when the bank turns around and denies

your loan.

If you’ve taken the time to set up a realistic

budget and get pre-approval on a home loan,

you’re already ahead of the competition.

Q U E S T I O N S F O R YO U R B A N K

M A N AG E R A N D F I N A N C I A L

A D V I S O R

— How much can I borrow? (Don’t rely on

the online calculators, they won’t give you

the full picture).

— What type of loan do I need?

— What will my monthly repayments be? Can

I pay less through fortnightly repayments?

— Do I need mortgage insurance?

— What are the benefits of fixed and variable

interest rates?

— What steps do I take to get pre-approval?

K E Y F I G U R E S T O I N C L U D E I N

YO U R B U D G E T

— Monthly or fortnightly repayments

— Rough estimates for any renovations

or repairs

— Cost of conveyancing and other legal fees

— Stamp duty – get an estimate using the

stamp duty calculator

If you don’t have financing set up, get in

touch with our team. We work closely with

some of the best mortgage brokers in

Sydney who can save you money by finding

the best possible loan for your situation.

R E M E M B E R

Your budget should always dictate your

property search criteria, not the other way

around. Be realistic, but keep in mind that

there are ways to buy into competitive

markets, even on a tighter budget.

B U Y I N G I N S Y D N E Y

F R O M O V E R S E A S ?

We offer specialist services for expat

Australian buyers and foreign investors.

Let us help you track the latest market

trends, find and shortlist properties that

meet your exact requirements, and manage

the final negotiation and sale. We’ll make

sure you don’t pay more than necessary,

help put you in touch with people who can

arrange finance, and give you peace of

mind throughout the process.

H A V I N G Y O U R F I N A N C E I N P L A C E M A T T E R S M O R E T H A N Y O U T H I N K

• • • W H Y YO U S H O U L D S P E A K T O YO U R L E N D E R B E F O R E

YO U G E T S E R I O U S A B O U T S E A R C H I N G

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

No matter what your budget is, keep in

mind that the ‘perfect’ property – one that

ticks every single box – probably doesn’t

exist. Most buyers have to compromise

on something.

So get clear on what you’re looking for.

Which of your criteria are must-haves and

which can you live without? Answering this

question should take time and effort.

T H E R E S E A R C H P H A S E

When you first start house hunting look at

a wide range of properties. Go to some

open houses for a few properties that are

well above your budget or don’t meet your

criteria. At this point you’re aiming to learn

about the market. But there’s always a

chance you’ll meet an owner who needs to

sell urgently or that you’ll discover a new

area you hadn’t considered.

T H E H U N T

One of the main factors that can make

house hunting a long, arduous process is

lack of clarity around what you’re aiming for

and where you’re willing to compromise.

Research is important, but if you keep

visiting every open home across multiple

suburbs you’ll be giving up all your free

weekends for months. Being clear about

your must-haves, nice-to-haves and

negotiables helps avoid this.

Q U E S T I O N S T O R E F I N E

YO U R S E A R C H

— Location: How far are you willing to look

outside your most ideal suburbs? How

close do you need to be to schools, shops

and public transport?

— Property type: Are you only interested in

new properties? Off-the-plan units? Vacant

blocks? Don’t limit yourself by focusing

only on the types of properties most

buyers are looking for – thinking outside

the box could save you thousands.

— Property elements: Don’t base your

search criteria only on things that are

easily changed with a renovation. Put the

most emphasis on things you have no

control over like block size, aspect, natural

light, views and street noise.

While it’s always difficult to find a property

that matches all your criteria, knowing what’s

out there and defining exactly what you want

is invaluable when it comes to bidding and

negotiating on that ideal place.

Using a buyer’s agent like The Buyers

Agency Sydney takes the time and hassle

out of the property hunt, by helping you fine

tune your search criteria and find the perfect

property faster.

M A K E S U R E Y O U K N O W W H A T Y O U W A N T• • •

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I N V E S T O R S , S T E P O U T O F T H E H O M E H U N T E R M I N D S E T

• • • B U Y I N G A N I N V E S T M E N T P R O P E R T Y I S N O T H I N G

L I K E B U Y I N G YO U R O W N H O M E

B U Y I N G P R O P E R T Y T H R O U G H

A S E L F - M A N AG E D S U P E R

F U N D ( S M S F )

If you’re looking to buy in an SMSF, you’ll

also need to consider questions like:

— How much do I need in super?

— Can I borrow money to buy the property?

— Am I allowed to renovate?

— What kind of deposit will I need?

For more expert advice, read our guide to

buying in an SMSF or contact us today.

S E C R E T 3

Even if you’ve already bought your own

home, taking the next step and buying an

investment property requires a completely

different approach. You’ll need to consider

a new range of factors – and it’s even

more important to keep emotions out of

the equation.

Q U E S T I O N S F O R I N V E S T O R S

— What is the vacancy rate in my

chosen area?

— What can I expect for an average

rental return?

— What’s the demographic of the area?

Who’s likely to rent my property?

— What are the average crime rates in

the area?

— Are property prices expected to

rise or fall?

— What happens if the tenants damage my

property? Do I need landlords insurance?

— If I buy a new property, how much

depreciation will I be able to claim?

Who do I need to speak to about

managing this?

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

It can be a frustrating experience paying for building,

pest and other inspections when you don’t end up

buying. But if you’re serious about a property, always

resist the temptation to cut costs here.

Harsh as this situation is, the alternative – buying

a property that turns out to have a major flaw – is

chilling and could be a huge opportunity cost. When

faced with that $10,000 bill to rip up floorboards and

treat for termites, a $500 pest inspection suddenly

seems very worthwhile.

We’ve heard too many of these horror stories not to

share some key tips:

— Research your building inspector: Check their

reviews and credentials online. Make sure they

have suitable and current professional indemnity

insurance. Watch for inspectors who may be hiding

problems to benefit sellers.

— Make sure your inspection reports cover

everything: Don’t miss these crucial areas:

• Pests

• Water damage

• Foundations

• Electrical work

B U Y I N G A U N I T ?

Request the minutes from the last two body

corporate meetings to find out about any problems

with the building and check the finances are in

order. Are there any upcoming one-off payments,

special levies or loans for urgent repairs?

Don’t forget to have your solicitor or conveyancer

check drainage diagrams, find out about any

easements and whether the property boundaries

are accurate.

C O U N C I L C H E C K S

Your solicitor or conveyancer should make enquiries

to find out:

— Are there any submitted or approved development

applications in the area?

— Are there upcoming major infrastructure

developments (road widenings, light rail, tunnels,

flight path changes)?

— Is the property heritage listed?

You should also do your own checks to make sure the

area has adequate broadband and mobile reception.

W H AT T O L O O K F O R AT I N S P E C T I O N S

When you’re inspecting a property, always be on the

lookout for these things. They could be the sign of a

bigger problem:

— Large cracks in walls. Pay close attention if the

house has just been painted.

— Uneven floors or a bounce when walking across a

room.

— Doors and windows that don’t close properly.

— Paint peeling off walls and damp smells. Is the

seller’s agent using deodorisers or fragrances to

hide a smell?

— Water pressure. Check by turning on taps and

flushing toilets.

— Hazardous materials such as asbestos.

— Adequate fencing around the pool. Does it

meet regulations?

Q: Should we forget about a property if it does have

structural problems?

A: Get a second opinion. There are few problems

that can’t be solved with enough time and money,

so knowing exactly what needs to be done to the

property gives you the chance to negotiate a

better price.

N E V E R S K I M P O N T H E E X P E R T S• • •

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

These days it seems like every property

worth buying sells through auction. This

is doubly true when it comes to the most

desirable suburbs. But what if you didn’t

have to front up to an auction with 100

other buyers and go through yet another

stressful round of bidding, only to lose

out at the last minute?

The fact is, the average buyer will never

hear about some of the best property deals.

‘Off-market’ properties change hands behind

the scenes with the help of well-connected

buyer’s agents.

This approach can benefit savvy sellers

and buyers often get a better deal too.

Seller’s agents need to foster good working

relationships with buyer’s agents so they’re

almost always upfront about any defects or

inadequacies, as well as the real value

of the place.

This means a buyer’s agent can find out the

real story of the property and negotiate a

better price.

W H Y W O U L D S O M E O N E S E L L

O F F - M A R K E T ?

— To maintain confidentiality around

their sale

— To save on selling costs

— For a quicker sale

— To manage a difficult transition,

such as a divorce or death

B U T N O O N E I S S E L L I N G

W H E R E I WA N T T O B U Y…

If you think your dream neighbourhood is

off limits, think again. A good buyer’s agent

will take a proactive approach to sniff out

off-market sales. They can letter drop a

particular street or block of units to gauge

interest and potentially negotiate a price

directly with an owner.

T H E B E S T P R O P E R T I E S N E V E R M A K E I T T O M A R K E T

• • • W H Y YO U N E E D T O AC C E S S O F F - M A R K E T D E A L S

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

Putting in the hours to do your research

properly will almost always pay off. This

means being prepared to do the legwork.

In today’s market simply searching online

or waiting for the next email update from a

property website isn’t enough.

Your research should cover everything from

the history of the area to walking through

your prospective neighbourhood to pick up

on factors like road noise (go in peak hour

for the real picture), light levels at different

times of day, the time it takes to get to the

bus or train station, on-street parking, what’s

happening with nearby properties and who

your neighbours will be.

T I P

Talk to the neighbours if you can. Often

there’s at least one who knows everything

about the street and is more than happy

to share.

It’s also important to research the sale price

of properties in your price range over the

last three months. You may need to call

some seller’s agents to find this information.

(Keep in mind that buyer’s agents have direct

access to sale price history.)

YO U R P R E -A U C T I O N P L A N

General information about a neighbourhood

is important, but if you’re heading to an

auction it’s crucial you know the specifics

about the property before you start bidding.

Always know how long the property has

been on the market and exactly why the

vendor is selling. You should also have your

completed pest inspections and a pre-set

auction limit.

If the property passes in and you end up

negotiating directly with the seller’s agent, all

this information will help. You want to make

the lowest offer possible. But go too low and

you risk offending the vendor or having the

agent decide you’re not a serious buyer.

Find out more about how we can help you

when buying at auction.

A U C T I O N M Y T H

It’s more expensive to buy at auction.

Fact: Usually only a few of the 700-800

properties that go to auction each week

sell well above their reserve price. The

media doesn’t write about properties

that fail to reach the reserve and are

negotiated after the auction ends.

If the prospect of bidding at auction is adding

extra stress to your house hunt, remember

that a confident buyer’s agent can take the

emotion out of the process. We use tried

and tested strategies to make the right bid

at the right time and protect you from

budget blowout.

I N F O R M A T I O N I S P O W E R• • •

A N D A L L R E S E A R C H I S U S E F U L

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

My final secret is this: don’t wait. There’s a cost to taking no action when it comes to finding

your dream home, especially when the property market is hot.

Sydney’s real estate market shows no sign of slowing down. Using the same CoreLogic figure

of 13.1% growth, a property that cost $2m at the start of 2016 would have cost $2.262m by the

end of the year. That’s the equivalent of more than $5,000 a week.

So there are concrete financial reasons to get in as soon as possible.

Saving a deposit and doing your research is important. But it can also pay to act before you

feel completely ready, even if that just means starting a conversation with a buyer’s agent at

The Buyers Agency Sydney.

T H E R E ’ S A R E A L C O S T T O N O T T A K I N G A C T I O N

• • • N O T B U Y I N G A P R O P E R T Y C O U L D C O S T YO U M O R E

T H A N PAY I N G A B O V E T H E O D D S

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Y O U R P R O P E R T Y S E A R C H C H E C K L I S T

F O R A L L P R O P E R T Y H U N T E R S

— Decide on needs, wants and

non-negotiables.

— Research your market online and offline.

— Define your budget limit.

— Get finance pre-approval.

— Find trusted building and pest inspectors.

— Have a solicitor ready to do your

conveyancing.

F O R O W N E R O C C U P I E R S

— Is your partner on the same page when it

comes to what you’re looking for?

— Have you considered your future needs

and growth potential?

F O R I N V E S T O R S

— Research neighbourhood statistics like

rental returns and tenancy rates.

— Consider landlords insurance.

— Engage a trusted tax adviser.

— Remember to leave the emotion at

the front door – this is an investment not

a home.

W H E N B U Y I N G V I A A N S M S F

— Research the tax laws and benefits that

apply to your situation.

— Find out about restrictions on making

changes/repairs.

F O R O V E R S E A S B U Y E R S

— Find out which Australian tax laws apply to

your situation.

— Decide who will manage inspections,

bidding and sale negotiations.

Y O U R B U Y I N G C H E C K L I S T

Are you truly ready to buy? Ask yourself

these questions:

— Does the property meet enough of your

not-negotiable search criteria?

— Have you done your market research on

comparable sales?

— Is your finance in place – including

a deposit?

— Have you confirmed your auction or

negotiation strategy?

— Are your building, pest and council

inspections complete?

— Has the property title been checked?

— Have you engaged your solicitor/

conveyancer to look over the contract?

W H AT N O T T O D O

— Don’t put property buying in the ‘too hard’

basket and wait for the market to turn

or cool down – no one has a crystal ball

and there could be a huge opportunity

cost to inaction, particularly in a market as

hot as Sydney.

— Don’t rush in and buy something on a

whim or without having done your due

diligence on the property and proper

market research on prices – you could

end up with a lemon or paying above

the odds.

— Don’t miss out on off-market properties

– it happens more than you’d think so

make sure you’re well connected with

agents in your search area.

— Don’t be scared of auctions – it’s a fair

and transparent process but the pressure

can be overwhelming, so consider

employing someone experienced to bid

and negotiate on your behalf.

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU

T H E B U Y E R S A G E N C Y S Y D N E Y : Y O U R U N F A I R A D V A N T A G E

A buyer’s agent works exclusively for you – the buyer. We’re relatively rare in the Australian

real estate market, which means you’ll have the edge over most other property hunters.

W H Y U S E A B U Y E R ’ S AG E N T ?

— Save money: We not only have access to exclusive off-market properties and homes that

are just about to enter the market, but we can also do the negotiating for you, drawing on

years of experience to get to the best price.

— Save time: We average four weeks from first inspection to settlement. Our market

knowledge means you’ll save months of research and we can also inspect on your behalf

and provide detailed reports.

— Get help with the fine detail: With our knowledge of investment properties, buying via an

SMSF, and buying from outside Australia, we can direct you to the best people for legal, tax

and contract details. We’ll also track your property’s performance over time, sending you

an objective property or rental analysis every year.

— Find peace of mind: We know what to look for when it comes to defects, over-eager

vendors and sellers agent tricks. From shortlisting, to inspecting, to making the winning bid,

we stay objective and put your best interests first.

The Buyers Agency Sydney draws on 30 years’ experience in the real estate industry.

We enjoy helping buyers through the process of finding and buying their dream properties.

Our industry contacts mean we’re connected with leading agents in Sydney’s Eastern Suburbs

and Lower North Shore and our knowledge of the market means we know where to focus

now and where to look next.

We’re there for the entire process, making sure you don’t pay more than necessary or spend

months in a fruitless property search. To discuss how we can help you find your ideal property,

contact us today.

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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU