From the desk of Linda Johnson, Co-Founder and Director – Spring Buyers Agency, and REBAA NSW State Representative
You may have heard the term, “Jack of all trades, master of none.” It’s an adage that can apply across most walks of life, but none more so than in our professional realm.
The low barrier to entry as a buyers’ agent is deeply concerning and under review. In our profession, there will be a decent percentage of operators who were attracted to it by their “romantic” ideas about being a professional property buyer. Many will have completed an expensive course, obtained their requisite REI licence (or perhaps found an avenue to bypass the license category timeline), hung a shingle and chased business. They often incorrectly believe they’re qualified and capable of buying whatever for whoever… and sometimes wherever.
But as every REBAA member knows, the complexities of property purchasing are vast. The required depth of knowledge, range of skills, life experience and commitment to hard work to make your role a success is daunting. Looking across our membership, there is a consistent lesson for anyone wanting to join our profession – and it’s that the best operators apply specialisation to their role.
Like medical professionals, legal experts, tradespeople and any number of other professions, buyers’ agents work best when they identify their specific specialisation and apply their particular skillset to it. It’s a way to deliver even better results to clients.
Specialisation can be defined in different ways. Property markets can normally be divided into subsets of location, property type and price point. I’d suggest buyers’ agents can include their buyer demographics in that division as well.
By concentrating on the combination of those and other factors that best suit your skills, you can home in on your specialty.
For example, most buyers’ agents tend to specialise by location. If you’re based in a regional centre, you may well service a wide range of property types throughout the entire town and its surrounds. In contrast, capital city BAs often find themselves focusing on a cluster of suburbs, or a certain region.
But we can go further. Some, particularly new entrant, buyers’ agents like the idea of operating in just the prestige sector of their market – some will even limit their client base by budget (although this is rare, to be honest, as they quickly learn markets fluctuate).
There’s property type too. Again, many will source multiple property types in their locality, but some may be particularly drawn to sourcing detached homes, new builds, commercial or even rural properties.
Then there’s your client demographic. For example, homebuyers require a different skillset from their representative than investors do. In fact, there are some very effective buyers’ agencies that are REBAA members who buy investment properties Australia-wide. These agencies have a sound basis for investment analysis, specialist knowledge of the areas they are buying in and will still personally inspect the areas and homes they are considering for clients – so, in that way, they continue their specialised approach.
What about large operations that seem to cater for all buyer types and requirements? Well, dig a bit deeper and you’ll find there are probably multiple professionals in that business, each with their own specific area of specialisation.
There are a range of upsides for clients who deal with specialist buyers’ agents.
There’s the deep understanding of their field – these buyers’ agents can quickly assess a prospective purchase to determine if it’s worth pursuing. They know what due diligence is required and can more easily and accurately assess market value when it comes time to make an offer.
The other big advantage is networks. Specialised buyers’ agents will be well-connected in their area or sector. They will have well-developed relationships with selling agents and other professionals in their chosen sector. This allows them to easily converse and negotiate with these people. It’s also a source of pre-market and off-market listings, giving their clients first dibs on potential purchases.
If you’re a buyers’ agent starting out in the profession, how do you identify your speciality area?
First up, you should always work initially for an experienced and well-established buyers’ agent with REBAA credentials. Not only will you develop the skills needed to become an excellent professional, but you’ll also be exposed to a range of property sectors so you can see which interests you most.
Also, think about how you can apply your own life experience to the role. Buyers’ agents who specialise in family homes are often family types who live in their service area too. They already know about school zones and community facilities in their area that appeal to their demographic. They also understand what’s required in a family home to help it function effectively.
Where you live can be important as well. Being a part of the community where you work gives you a unique insight into what’s happening in your service area.
Also – pay attention to what you’re passionate about. If you’re enthusiastic about analysing returns and growth rates, perhaps concentrating on the investment sector or commercial investment would be a good choice for you.
Whatever your focus as a buyers’ agent, undertaking a specialisation is one key to delivering outstanding results for clients and ensuring you are operating at the top echelon of your industry.
