New Zealand Projects International

Why use Buyers Agents?

In an ideal world, searching for a property abroad would be a labour of love. There would be long, sunlit days spent exploring areas of your chosen country, sampling the local produce and finding undiscovered corners to set up home. Unfortunately, the reality for most of us is quite different. Time-strapped buyers can use the Internet, the media and advice from knowledgeable friends to gather information but even these cannot help with all the organisational problems of buying a home abroad.             

As well as choosing the best location and knowing which ones to avoid, potential difficulties international buyers may encounter include language barriers, unfamiliar legal systems and unscrupulous developers. If buying a property in the your home country is one of the most stressful things in life, how much harder must it be to buy in a different country - possibly accessible only by plane, with different customs, a different language and a different time zone?               

Property search agents, also known as property finders or buying agents, work on behalf of buyers with the aim of helping them find their ideal location and property. They claim to save property hunters time and hassle. Many also claim that, despite charging for this service, they will end up saving you money, too. Does this all sound too good to be true? Well read on....

The Process

Search agents start by getting a thorough knowledge of their client’s criteria. Is this an investment buy or a holiday home? How often do you plan to visit? Who else will stay? Is rental return vital? How important is it to be close to schools and hospitals? They should know your budget and time-frame and how flexible you are prepared to be. ‘Location, location, location’ is all-important and a search agent should be able to help you here.      


They should be able to suggest places you might not have considered and they should have good local contacts, so they hear about property for sale that is not listed with local estate agents.                 

Search agents should prevent buyers from making costly mistakes. Buyers might want to buy in an area where they have happily holidayed in the past but experienced property search agents say this is not always a good idea. Just because a location is ideal for two weeks in the height of the season doesn’t mean it will have year-round appeal. Consider the ski resort that buzzes for four months in winter but closes up completely for the other eight months, making even buying food a difficult chore. Expert knowledge of a country or region is a vital part of the role of the property finder but where they can really add value is in helping buyers clarify exactly what they want.        

“We attract clients who are busy or don’t know where to start, we provide impartial advice and listen carefully to what they want. We can be unemotional and steer them away from an expensive mistake. A search agency should be able to suggest up and coming areas that you may not have heard of but which offer better value than the more established destinations.

Fees

It is vital to sign a contract to ensure you know exactly what you are getting for your money. A good agency should help you from start to finish, handling price negotiations for you, advising on how to finance the purchase and helping throughout the conveyancing process.                

Fees vary depending on requirements i.e. residential or commercial assignments. In New Zealand it is the vendor who pays a commission but in reality it is the buyer who pays for that commission in the asking price so it is important that you get the property at the right price. Buyers agents usually charge a retainer and hourly fee, which may be deducted from the final payment if you successfully purchase but ultimately the use of a buyers agent will ultimately save you money and ensure you buy right.