An insider's guide to buying quality real estate

1. An Insider’s Guide to
Buying Real Estate
in partnership with
EPS Property Search

2. Any advice contained in this presentation is general advice only and does not
take into consideration the reader’s personal circumstances. Any reference to
the reader’s actual circumstances is coincidental. To avoid making a decision
not appropriate to you, the content should not be relied upon or act as a
substitute for receiving financial advice suitable to your circumstances. When
considering a financial product please consider the Product Disclosure
Statement. Stanford Brown is a Corporate Authorised Representative of The
Lunar Group Pty Limited. The Lunar Group and its representatives receive fees
and brokerage from the provision of financial advice or placement of financial
products. The Lunar Group Pty Limited ABN 27 159 030 869 AFSL No. 470948.
Disclaimer

3. Patrick Bright, EPS Property Search

4. • They help home and investment property buyers (not sellers)
• They don’t take fees from anyone other than their buying client
(no conflict of interest)
• They guide their clients to purchase above average homes and
investment properties
What is an exclusive Buyer’s Agent?

5. • One point of contact for buyers to be able to access the entire
market.
• Allow buyers to deal with one person / buyers agent acting in
their best interests not hundred's of sales agents who are not
• Good time leverage for busy people
• You could hire a dud
• They cost $$$. Typically anything from 1-3% of purchase price
depending on the type of service provided
Pros and cons of hiring a buyer’s agent

6. • Off the plan
• Established
• Buy renovate hold / sell
• Highest and best use
New versus established property pros and
cons

7. Moving strategies without ending up homeless
• Can you finance the buy without selling first? If yes great!
• Buy first with a long settlement (risk level dependent on what
you have to sell and state of the market in the suburb your
selling in)
• Sell first with a long settlement (still a bit risky in the current
market)
• Be on the market “quietly” whilst looking to buy
• Sell with a rent back clause in the contract

8. Buying investment property
• Is it ok to buy a property sight unseen?

9. Example ad you may come across...
• Single level 3 bed family home
• Great condition – good renter, large amounts of free flowing
fresh air
• Some renovation work required
• North facing with good natural light
• Motivated vendor – will throw in bonus car for free

10. Don’t believe the selling agent ads!

11. Another example ad you may come across…
• Two story brick home
• North / East facing
• Some work required
• Going for a fire sale price

12. Don’t trust what you see online
Original
Same photo altered by adding 5%
light and clicking and dragging
left edge of photo

13. Never buy a property unseen!

14. Where to invest with a margin of safety
• The inner ring of capital cities
• As a general rule stick to plus or minus 20% of the median
price for the location / suburb
• Find the sweet spot for ROI
• Supply and demand is a key driver of any market so make sure
there is plenty of demand now and will be in the future
• Stick to my 20 – 25 – 20 rule

15. What to buy?
• A grade – 10% of the market
• B grade – 20% of the market
--------------------------------------
• C grade – 40% of the market
• D grade – 30% of the market

16. Keyelementsof negotiation
• Build rapport
• Information
• Motivation – Vendor’s and Agent’s
• Low need

17. Key elements of negotiation (cont)
• Never be the first to name a price
• Terms versus price - which is more important?
• Use deadlines
• Take the focus off the price

18. • Think rock climbing
• Bridge the gap
• The “I love it offer”
• I don’t care where you start
• Put your offers in writing
Negotiation in action

19. What to expect at auction
Whattoexpectatauction
• You will be nervous
• Pressure for you to
bid
• The blank cheque
book buyer
• Do auctions get the
highest price or the
second highest price?
• Don’t bid against
yourself
• The reserve to be
above the price guide
• A lotto outcome for
the buyer and seller
• Buy well or don’t buy

20. Top6mistakestoavoid…
1. Buying without finance pre-approval
in writing
2. Making a fed up purchase
3. Borrowing at your limit
4. Not conducting pest and relevant
building inspections
5. Listening to friends and family
6. Relying on data reports

21. Don’t be shark bait.. Do your research!

22. 02 9904 4722
patrick@epspropertysearch.com.au
Patrick Bright, Buyer’s Agent
My contact details