This Is Why People Pay Too Much for Property

There are plenty of ways to buy property, though I still don’t understand why people try to buy themselves?

They’ll drive half way across town to save 2c per litre on petrol, though try to negotiate a $1m purchase themselves with zero experience in negotiating property.

Worse still, they can sometimes go to auction with absolutely no clue of the actual value of the property they are trying to buy. They arm themselves with the maximum a bank is willing to lend them, their ego and their emotional attachment to the purchase.

It rarely ends well for them.

These people are sitting ducks for real estate agents.

Some real estate agents prey on these types of buyers to milk them of every dollar. Maybe you know some people like this?

Then there are the buying experts.

The buying experts have purchased hundreds of properties. They know the exact value of a property and never overpay even by a single dollar. In most cases, they purchase property far cheaper than the “amateur investor” because they have personal relationships with the selling agents and both know how to get a deal done.

Some real estate agents love dealing with the buying experts. They’d rather do more fair deals, more often, than spend their time trying to milk “mum’s and dad’s” out of every penny the bank is willing to loan them.

Think of it from a selling agents perspective. They make a commission on the sale of the property. In this example, let’s say it’s 2%.

Option 1:

They call up a buyer’s agent (like Your Empire) and say they have a property to sell. They know Your Empire has access to buyers that are pre approved for finance and also know exactly how the process will go as they have done business with us many times before.

Your Empire gets an independent market valuation of the property and let’s say it’s $1m, which is offered to the selling agent on the buyer’s behalf.

As the selling agent, do you make the deal, take your $20,000 commission and move on?

Option 2:

  • Post the property online
  • Run countless open home inspections, taking time and utilising staff
  • Call any parties that have been through the property
  • Deal with people who have no idea about the buying process
  • Negotiate a price with an emotional buyer – if they actually have pre-approval

They could then negotiate an extra 10% on the property price from the amateur (which gets $2,000 additional commission).

Though would it even be worth it?

For some, yes. That’s the way they do business. They’re happy to spend all that time, utilise staff and spend their resources on milking the extra dollars from the “sitting ducks” rather than focussing on getting more listings. They HAVE TO demand a bigger sales price from these people as well, because they have to justify the extra time and resources spent on the sale.

For others, no. They’d rather do a bigger volume of deals dealing primarily with buyer’s agents where they know how long the process will take and how the outcome will look, right from the first phone call.

So who is Your Empire’s buying expert?

His name is Kel and maybe you’ve seen his name posted on some Your Empire reviews given by clients. They simply love dealing with him because he knows how to get the deal done.

He’s relentless. He’s one of the most experienced in the business (he’s been around for 20 years). Both real estate agents and clients love dealing with him. That tells you something. He has relationships with all the people who matter and yet remains out of the public eye.

Maybe I’ll introduce him to you one day, though he has no interest in the limelight. He doesn’t need it. He’s too busy buying great properties at independent valuations for happy clients.

So if you are interested in buying an investment property or family home soon, sure you can do it yourself… or you can get a buying expert to find the right property and negotiate the price for you.

 

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