What is a Buyers Advocate (and do you need one)?

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Show overview

Guest Interview – What a Buyers Advocate does and do you need one for your next property purchase with Sam Spernat with Rodney Samuels Consulting

How to find guests and presenters 

Guest bio

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Episode Transcript

Note: This is an automated transcript so it isn’t perfect

Have you heard of Buyers Advocates, but you’re not quite sure what they actually do. What does the process of working with the buyers advocate look like? And also, why would you work with a bias advocate? Why would you not just go and buy a house yourself without any assistance? Well, if you’re wondering these things, you’re not alone. They’re pretty common questions. So I asked a friend of the show Sam Spernat at from Rodney Samuels Consulting Who? He is a BIS advocate. To come back onto the show and explain to us you know what it buys, advocate does and why you should consider working with one when you make your next property purchase. Now, if we haven’t met before Hello. Thanks for joining up. May us. Thanks for listening to the show. My name’s Joe Violeta. I am the co owner of Violet of Finance with my husband, Carl. It’s a mortgage brokerage and we help families and small businesses achieved their property and finance dreams and goals by helping them to get a fair deal on their property finance or their home loans, property investment, finance, that sort of thing. One more thing I want to let you know before the show starts is that I recorded this episode a few months ago. I think it was back in February and it is now August 2020 and the show will be published in September 2020. And so, if you’re listening to the show in realty time, so in September 2020 we are in the midst of stage for restrictions here in Melbourne. Judah Covert 19. So during this episode, which were recorded back in February, I think it wass we were talking about open for inspections. So when you sell your house, people can come and walk through and have a look. Those things were still allowed back then. They’re not committed at the moment during their restrictions, so but hopefully they will be again soon. So I thought I’d just let you know. And if during this intro you’ve heard any little background noises, it’s because I’m recording this from home and we’re all home because of stage for restrictions. Anyway, I’m going off on a little bit of attention. Now let’s get stuck into the show and answer all your questions about buyers. I think a san thank you So much for joining me on the show today. Now what we’re going to chat about is why people should consider engaging a BIS advocate. I thought you’d be the perfect person to speak to saying that you you are put its advocates so you you’d know the benefits. I think we might start off with what ABIs advocate actually is and does because I think buys advocates a quiet, popular and well understood in America, for example. But in Australia, I think it still might be a bit of an emerging industry. So can you give us some clarification around what a buyer’s advocate is? Sure, it’s a bit of a new industry in Australia, So basically the way to think better buys, advocate is your representative to go help you find bye and secure the right type of property that meets your requirements and obey that for investment or Homebuyer Ship. Really? The Advocate is there to be your representative where sales agent, the person selling the property is there to represent the vendor. So my job is to, you know, when I meet with a climate, the first question is, you know what you’re looking for. What are you trying to achieve and what what do you goals out of this property? And obviously homeownership should still be treated with an investment twist. It shouldn’t ever just bay artist water home, so it doesn’t matter how forms it does. But really, Then it’s my job to go into the market, find the property that suits my client’s needs and then help them secure that property without overpaying for that property. Okay, so representing the buyer and helping them secure the property that they want without overpaying for. So when someone works with the BIS advocate, what does the process look like? Like, how does it actually work? Sure. So why don’t we just talk through a Ziff? I was dealing with a new client. It’s obviously as I said, we’ll talk about investment because predominantly, that’s what we’re there. Four eyes investors. But obviously, as I said, I deal with a lot of home buyers more than I ever thought I would. And the first question, as I said, is always well, once we got past the budget, what are you trying to achieve out of the property now? Some For some clients, it’s capital appreciation, particularly our younger clients and for some of our older clients actually rent or turn because they’re having towards retirement. They need something that’s going to give them an income or so than something that’s going to give them capital, right? So that’s always the first total of minutes. Will what properties are going to give that goal? And are they available in their price point isn’t something that we can help them with and then going out into the marketplace and trying to find and secure that property for them. You know, I sat down with a client recently, had a budget of about 700,000, looking for something to add value to their first time, but also being their first home. It’s a stepping stone property, so we want something that in the future could either be tenanted out very easily because they may flip it into being an investment or something that we can on cell at the end of the day to help them leverage into the next bigger property for themselves. But you know they have an advantage in the client’s father is a builder, so obviously finding something that needs a renovation to them would be a big advantage because they can get it done for cheaper than anyone else. So that’s what I mean by looking for their goals. Their goal is to get the first time, but also they’ve got a big advantage. So why not utilise that advantage? So that would bay one of away? We start the conversation, obviously, was talking to them about what properties were being their budget. From what areas, you know, if they set down, that’s what I want. South Yarra. Well, we’re not going to be talking about single front cottages are We were going to be talking about one and two bedroom apartments, same ways. If they go over the Williamstown or Ascot fail, we can start talking about Bill units and the same down south and in Brighton. Or in, you know, Elston way call Carnegie that that’s more of a billy unit market than apartment market. Okay. And so then, once you’ve helped them find what might be inappropriate property s so that they go to the open home or do you go to it, or what happens there often is involved on involved as you like. Some clients, you know, literally hands in the air. Not interested may call me when you find something and then we’ll have a chat. Got a great client like that At the moment, I don’t think he’s ever even looked at one of the properties off boarding the most inmates from past them. I’m really not interested, which is fine. But then, in the same breath, I have other clients who want to be out there on the Saturday with me. I don’t mind if they want to come and look at other things with me to get an appreciation of how I operate. So they might jump in the car with the order so they morning incoming look att. Five or six properties, couple off the might be for them. But I’ll also be looking at properties for other clients while I’m out there that they can’t just dedicate a whole weekend to one client for obvious reasons. So, no, they do come to the Open’s. Normally, I’ll try and actually already have looked at the property before. I take a quiet with me because then I’ll be able to assess whether they’re wasting their time or not, because there’s nothing worse than when I go look at a property that I think might be all right. The client’s begged me to tag along and we get out front. I’m so sorry, because I can’t even say it’s horrible from the street. And I’m not going to let you buy this on any kind of, you know, walk in, head down, right? This is revolting. Let’s leave on, You know, they might have come from half a. Now we’re on our way just to come level that So I try and cover the property’s off before they come and have a look. Okay, All right, that’s good. And then you know the right questions to ask that realestate agent She usually would often have a relationship with many real estate agents, particularly considering that you also offer then vindaloo advocacy. And then and then you know, so the right questions to ask them and then Khun also negotiate with them in a private sale. I’m I’m supposing, but if there’s an auction, do you also bid on the clients? But I’ve asked you about seven questions in that one sentence started. So you look you’re right. I do 10 don’t know the agents, and if I don’t know that agent. I’ll know someone within their firm that I’ve dealt with previously where I could kind of say, Well, hang on, look, have a chat. This person let them know I’m not going to waste their time and it just gives them some confidence in who they’re dealing with is a known quantity, and vice versa. I could speak to one of the agents and they could go. Just be careful for X y zed results. And that does happen. Not all agents are really that conscionable. I’m sure the public is shocked to hear that. Really? The idea is that you I will go in there. I’ll ask the questions I need to ask. And I kind of quarantine the purchaser from them. They don’t have to talk to the age, and then they kind of just have a look and not be pressured because the agent knows they’ll get a pretty resounding response from me if they passed one of my clients. I have a way with words. I love that you offer a pester barrier as well. Well, I call it okay, you know, And look, that does tie into the vendor advocacy and one of the reasons a lot of people who use our vendor advocacy service, which we do, we get paid a referral fee by the agents. There’s no additional cost. Teo. Use that service when you’re selling your home. Andi takes the guesswork out, but a lot of people use it because there’s a thing called the educational process, and it was more common in the past. But it still does happen where the agent will tell you a price that your properties worth probably above market to try and get the work and that will then tell you one week later are amazing. The markets change. We’re going to drop your price and expectation, and they know if they do that with May, once again, it’s going to be a pretty resounding response. And I’m not going to be too polite to them. But also more importantly, not only will I never use them again, I’ll make sure their boss probably knows that I’ll never use their company again. That’s just not the way we operate on DH people like that feeling contradictory. My older clients, who maybe don’t have the confidence or clients that have never bought and sold before and don’t know the games the agents play. And, you know, some of the last sleek and very good at flying the guy and really makes people almost uncomfortable dealing with them and not realising what their rights are. Actually, CAG good. All right. So a conduit, a cz well, and you’ve got a relationship with the agents and okay, so if it’s a private sale, you would negotiate the price, and then if it’s an auction, then you you can offer to bid for the client at the option way. Always been frail clients on their behalf under the negotiation. That’s part of the service of the package. So, yeah, we’ll attend the auction on your behalf on bid or do the private cell negotiation on DH with our company. It doesn’t matter whether you know it takes two or three goes to buy the property for you that we’re looking for because you can’t buy everything you were tempted by. And I’d be really worried about an advocate that does say they buy everything attempt because I’d be thinking they probably overpaid in, but it’s the same fee. Whether it’s the first one, we go for or it takes us five goes and you know what? Sometimes that just happens and you can’t help it where you miss out on properties here and there. Just because someone is willing to pay more than you and me. You know you can’t just throw caution to the wind and pay whatever it takes. That’s a dangerous method. And that’s why I think having and that is one of the big ad advantages of having an advocate is that it removes the emotion from it. And I noticed with a lot of my husband, Carl’s clients, they’ll find a home and they’ll be like, Right, this is the dream home and I don’t have any finance, sort of. But I need finance sorted within the next 48 hours because I need to put on an offer. And if I don’t get this home, it will literally not literally, but they say it will literally the end off the world. And the thing is, other properties will come about. So we need to approach these kind of negotiations and these purchases with cool heads, or else you can end up overpaying Sze. I think that’s one of the huge benefits of having an advocate is someone who’s done this before. Many, many, many, many times, many more than you have and will approach it with a very cool head. What are some of the other benefits off engaging ABIs advocate? I mean, we’ve covered wth, Um, but let’s just list them off so we could be really, really clear. It’s the independence. You’re not seeking advice from someone who has a vested interest in working for the vendor or not you. It’s also not wasting your time. So you’re not looking at things that are a priced above your price point, and therefore you don’t end up chasing the market now in a growing market that can be really dangerous, because you might start off thinking I could buy with what I want for 700 or 800. What have you. But then all of a sudden, if you spent 6, 12 months looking, you’re all of a sudden price completely out what you could have bought 12 months ago, and that’s one of the big factors about knowing when to say Yes, I will have that extra bid. I won’t hold back. I will have the gut because, as I said, a CZ we’ve discussed previously. Sometimes paying that little bit extra to get into the market is the best thing you can ever do. And I often say to my clients, There’s no harm in paying half a step ahead of the market to secure a good property If you’re going to hold it for a long time. There is a lot of damage and danger. They were in paying a four step ahead of the market because that then 18 capital appreciation. And that’s why it is. I’ve mentioned in some of my other social media content. There’s two prices that we discussed. There’s always what’s the property worth, and then what’s it going to take to buy this property? It is very rarely are they the same number. There’s always a buyer’s premium. Okay, after factory, you know it’s the same. Doesn’t matter whether we’re talking about property. Classic cars, artwork, fine jewellery. If you want something that’s rare, you will have to pay a premium to secure it and some houses around some investments are red. Some are dime a dozen. I try, and not by the ones that are dime a dozen because then why would someone pay your premium in 10 to 15 20 years when you come to sell it? Very good point any other. What other benefits, Khun? Oui, List off. Look, save your time aggravation. You don’t have to deal with real estate agents. That’s usually the big one. You’d have to deal with the estate agents. That’s all left up to May I getto have that fund. The time is really the big one on out there. Seven days a week, 365 days a year, pretty much other than the major holidays, actually looking at property and talking to agents. If you’re in the hunt for a property, you’re spending every weekend driving around, and I’m sure all your listeners could think of better things to do on their weekend and talking to a state agents. God knows I can half the time, but this is the life I chose. So for a lot of people in its the time factor and the lack of aggravation, they get their weekends back. How many times I’m sure your listeners have had the kids at odds kick or swimming, and now I really want to go look at that property, but it actually might prefer not to have to leave this game or or it’s pouring with rain. And that’s true rank. Show anything. I don’t want to get a couple of kids in the car to go. Look at this house sent me along to do it. It’s much more much easier to get me to do these things. That’s so true. So say, saving time of aggravation, potentially money getting and actually finding a property that will meet your needs and your and your goals. Now you men have done three goals. Is a big one because everyone’s got a different gold. There could be a property developer. They could be an investor. They could be a home buyer. But it’s all the intrinsic issues of what they’re trying to achieve is what we help our clients with. Great. Now you mentioned your social media content, so you do do a lot of really good videos. I enjoy watching them. Where can people find your videos and more information online? Well, Facebook’s always probably the best one. That’s where I do put a lot of it through. So Rodney Samuels, consulting on Facebook’s our page or instagram rs underscore consulting. We’ve got an I G T v Channel their YouTube. I’m on. I don’t I must admit, I don’t cheque YouTube as Muchas thie. Other ones. Once again just on our web page. Rodney Samuels dot com Don’t you Brilliant. Well, that is fantastic. Please do make sure that you go and cheque Sam out and connect with him online. Thank you so much for joining me. Sam and I look forward to chatting with you again very soon. Thanks for joining us on the dream home movement. Be sure to come over and say hi on Facebook and Instagram. I hope that your dream home projects are going well and I look forward to chatting with you again next week.

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