How much does it cost you to search for a property on your own? Make a guess. NOTHING? ZERO? ZILCH?
Would you believe if I say it could cost you $133,000 to buy a property yourself? And using a buyer agent can save you more than $100,000? And $500,000 in one instance?
Really? This article will walk you through the numbers, and why buying too slowly and not using a buyers advocate to help buy faster can cost you a lot more than you think.
Let us look at the Property Buying Facts and Figures
UBank’s research has revealed that it can take up to 12 months for a person in VIC to find the perfect property. That’s an entire year of searching through countless properties, trying untested tips, and losing out on rental yields. On top of that, property prices are rising at an average of 6.8% annually [Corelogic]. This means that if you take a year to find a property, you'll miss out on that 6.8% increase in equity, and end up paying 6.8% more for a similar property when you eventually find one.
To put this in perspective, let's consider the median Melbourne house price of $833,000 (2018) and a median rental of $420 per week. If it takes you 12 months to buy a property, you will miss out on $21,000 in rental yield and $56,000 in equity growth, and you will end up paying $56,000 more for a similar property when you eventually buy one. That's a total of over $133,000 lost! This figure does not even include the additional stamp duties paid, the time spent researching and travelling to inspections, and so on.
If it is an investment property that you are buying, this means you'll be making $133,000 less in that property alone. It's no wonder that more and more savvy and busy property buyers are engaging the services of buyers agents to save them time, money, and the hassle of navigating the property market.
What happens when you use a Buyers Agent?
Depending on the complexities of a purchase, it usually takes our Buyers Advocates an average of 2-3 months to find the property. About 50% of our lucky clients take as little as 1 month for their purchase.
Yes, it might cost you on average of 2-2.5% in buyers agent fees, but, remember, you get rental incoming coming into your bank account 6 to 9 months sooner! And you benefit from the 6.8% equity appreciation sooner! You are still up to 4.3% better off with a buyer's agent in the first year!
When you consider the missed opportunity, engaging a professional Buyers Agent like us, is suddenly a cost effective, and smarter way in your property search journey.
Have a no obligation discussion with us. Mention this article and we will be pleased to offer a special deal just for you.
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