Nearly 60% of houses in Sydney are either owned or purchased by the residents. As of 2016, almost 37% of households with mortgages paid $2600 or more per month on loan repayment. Studies also show that first home buyers are more likely to have heavy mortgage burdens.
Buying property in Sydney can be daunting, and you may end up shelling out much more than you need to. Hence, many buyers seek out buyer’s agents in Sydney to guide them through bidding and price negotiation.
Here are some reasons why hiring a buyer’s advocate might be the best decision you make regarding your property purchase.
Who is a buyer’s advocate?
A buyer’s agent or advocate is a licensed real estate professional you can hire to represent your interests in a property deal. Reputed agents comply with the NSW Government’s Fair Trading standards regarding buying activities – including searching, negotiating, bidding, and concluding a successful purchase.
The bidding process:
Fair Trading regulations of the NSW Government include guidelines on bidding. According to the rules, you must register (or authorise your agent to register) in the bidder record maintained by the seller any time before the auction. The highest bidder over the reserve price wins the bid and pays the deposit on the spot after signing the sale contract.
The process can be unnerving, but buyer’s advocates provide you with valuable support. They can bid on your behalf and increase your chances of a successful bid without overvaluing the property. They will perform a property search and evaluation if your bid is successful and negotiate a further settlement once you pay the deposit.
Consultation for strata scheme properties:
65.5% of NSW’s strata scheme properties are in Sydney, accounting for 82.7% of NSW’s total lots. Strata scheme properties are buildings that are divided into ‘lots’. When you purchase a ‘lot’, you will also co-own common areas in the property, such as gardens, roofs, and driveways. A buyer’s agent can clarify the spaces you have complete control over and the spaces that you cannot alter without the permission of other owners. For instance, you may need permission to install internet services in your apartment/house.
Once you purchase a lot, you might have to ask the owner’s corporation to produce a section 184 certificate. It lists out the names and addresses of other owners, what levies you have to pay, and a capital works plan, among other details. Your agent can help you demystify the process, thus equipping you with actionable information.
Sometimes you may be purchasing a ‘lot’ in a community scheme. The Fair Trading rules apply differently to communities, and your agent can walk you through the implications of each clause in the sale contract.
Avoid Frauds and Scams:
If you look to property purchase as an avenue to reduce your tax liabilities and diversify your investments, you will need to consult a legal advisor. Buyer’s advocates can help you streamline the process and save you precious time. Further, they can help you scrutinise payments to ensure you’re paying the correct party.
Recent trends have shown an increase in business email compromise (BEC) crimes. For instance, in September 2021, a couple buying a property in Macquarie Park had to pay $1 million to finalise the property transfer, and they ended up transferring the amount to scammers. The scammers sent an email pretending to be the seller’s legal agents, asking to transfer the money to another account. Had the couple hired an agent to represent them, they could have avoided the loss.
In conclusion
The NSW government gives you a grant of up to $10,000 under the expanded First Home Buyer Assistance Scheme if you build or buy your first home. Consult reliable buyer’s agents in Sydney to search, bid, and negotiate for the best prices on your dream home. With the economy picking pace after the pandemic, now is the best time to invest in a home.
