Buyer's agents are the flavour of the month right now and brokers can earn another stream of income by forming a business partnership. We speak to Paul Giezekamp of Property Secrets and Rich Harvey of propertybuyer about how buyer's agents can add value to your business.
Video transcript below:
Donna Sawyer, Australian Broker TV
Donna Sawyer: Buyer’s agents are on trend right now as home buyers look for return on investment in a relatively flat property market. Speaking at the recent Sydney Home Buyers Show, Paul Giezekamp of Property Secrets says mortgage brokers can benefit from forming an alliance with a buyer’s agent who acts on behalf of the client and provides another stream of income to your business.
Paul Giezekamp, Property Secrets
Paul Giezekamp: It actually started over in America and it’s now flavour of the month here in Australia, but it’s been going for round about 10 years in Australia, but it has really taken off the last 2 or 3 years. So if you don’t know how to buy property or if you are a mortgage broker that doesn’t have that income, that would actually marry quite well.
Rich Harvey: Mortgage brokers are a great alliance partner for us. I mean you can’t go shopping for property unless you have your finance pre-approved and there is really it’s a waste of time. So for brokers we are working with them, by helping their clients to identify where to buy and what to buy.
Paul Giezekamp: What we offer to mortgage brokers is that they can actually refer their clients to us, they do the loans but it gives them another stream of income, so they are not solely reliant on the upfront trail commissions, they can also get an upfront commission from like a buyer’s agent company. So the buyer’s agent job is go out there and find the best possible product and the best possible investment for the mortgage broker for their client.\
Donna Sawyer: Rich Harvey of Property Buyer says Buyer’s agents add value to brokers services by offering independent property valuations and by streamlining the purchasing process.
Rich Harvey: The key value is speeding the time it takes, identifying what to buy and making sure they pay the right price, that’s a really key one. I think for brokers they get a bit frustrated when they find that the property valuation comes back over what the client, over what they paid. So we protect the client from paying too much.
Donna Sawyer: He says buyer’s agents also mitigate the risk of pre-approved home loans falling through.
Rich Harvey: A broker will often get frustrated because they will get the pre-approval, it will sit in the drawer for 3 months and then it will probably expire. So really the best thing is to get the broker to advise their clients to use a buyer’s agent and help them speed up the process.
Paul Giezekamp: It definitely adds value because when someone goes and sees a mortgage broker and they get their refinance approved and also the pre-approval, they then are sort of like left by themselves and so a lot of the investors will go ahead and speak to agents, but the agent’s job by law is to look after the seller, not the purchaser.
Donna Sawyer: This is Donna Sawyer reporting for Australian Broker TV.