As more interstate buyers look to Perth for property investments, the role of buyer’s agents has become increasingly crucial. However, there’s a significant difference between using a local buyer’s agent versus one from another state. Perth’s property market has its own dynamics, and local knowledge is key to navigating these successfully.
Additionally, in Western Australia (WA), buyer’s agents must pass local real estate courses that cover WA’s unique laws, procedures, and paperwork, which differ from the rest of Australia. After qualifying, they must work under a qualified WA licensee for two years before obtaining a full licence to work independently. Interstate buyer’s agents, by contrast, may not receive this in-depth training, which can impact their ability to represent buyers effectively in WA. In this post, we’ll explore why working with a Perth-based buyer’s agent is essential to making informed, secure property purchases.
In-Depth Local Knowledge and Market Insights
Suburb-Specific Insights:
Perth’s property market can be deceiving if you only look at the numbers. Suburbs that appear promising on paper may not have the underlying drivers to sustain long-term growth. A local buyer’s agent understands more than just the statistics—they know the subtle factors that contribute to a suburb’s growth potential, such as demographics and social structure, school zones, and upcoming infrastructure projects.
For example, during periods of market growth, some investors may flock to suburbs with lower entry prices, driving up prices temporarily. However, a local buyer’s agent would know if these areas lack long-term growth drivers and might not perform well once the market stabilises. Their insights help you avoid areas that may only seem attractive short-term but lack sustainable appeal.
Recent Trends in Rental Yields:
With property prices rising faster than rents, many non-local investors or interstate buyer’s agents are targeting cheaper suburbs, believing they offer better rental yields. However, these areas may not have the growth potential to meet long-term investment goals. A local buyer’s agent can guide you toward suburbs and properties that strike the right balance between growth potential and rental return, ensuring they align with your investment goals.
On-the-Ground Property Evaluations and Identifying Risks
In-Person Property Inspections:
One of the key advantages of using a local buyer’s agent is their ability to conduct thorough, in-person property inspections. They can provide an honest assessment of the property, pointing out both strengths and potential issues. This level of detail is critical for making an informed decision.
In contrast, relying on an interstate agent often means purchasing a property sight-unseen or depending on videos and descriptions that might not reveal all the risks. While these materials might highlight the property’s positive aspects, they may overlook or underplay potential problems, simply because the buyer’s agent is not physically present to assess the property comprehensively.
Due Diligence and Understanding Local Issues:
A critical advantage of working with a local buyer’s agent is their understanding of the specific due diligence required in Perth. Local agents are aware of the unique aspects that need to be checked and handle these tasks directly, whereas an interstate buyer’s agent, accustomed to deferring them to a solicitor, might not be fully aware of what is required. They know what to investigate and how to interpret the findings, ensuring that buyers are fully informed about potential risks.
Examples include:
- Proposed Rezoning and Heritage Listings: Local agents investigate potential zoning changes and heritage listings that could affect the property’s future use or value.
- Crime Rates and Road Widening: They also check crime statistics and upcoming infrastructure projects, like road widening, which could impact the property’s desirability.
- Easements, Restrictive Covenants, and Land Contamination: Local agents examine easements and restrictive covenants, as well as check for any land contamination issues, ensuring the property is fit for your intended use.
Unconditional Offers:
Another significant concern with interstate agents is the frequent practice of making unconditional or sight-unseen offers on behalf of buyers. Unconditional offers lack protective conditions, leaving the buyer vulnerable if major structural defects or termite damage are discovered later. Sight-unseen offers are made without the buyer’s agent or buyer ever inspecting the property in person, which increases the risk of overlooking potential issues. Additionally, these offers are often made without thorough due diligence, so significant problems with the property may go unnoticed. A local buyer’s agent, on the other hand, should ensure that, within the competitive landscape, the offer includes the strongest possible protective conditions to safeguard the buyer’s interests, reducing the risk of unexpected expenses or complications post-purchase.
The Power of Local Networks and Relationships
Relationships with Selling Agents:
Local buyer’s agents who have been operating for some time have cultivated strong, long-term relationships with selling agents. These relationships are built on trust and mutual understanding of the local market. This often leads to smoother transactions, as selling agents know they’re dealing with a buyer’s agent who is familiar with the local laws, customs, and market conditions.
These relationships also benefit you as the buyer, ensuring that negotiations, inspections, and other aspects of the buying process are handled more efficiently and in your best interests. An interstate agent, who might not have these established connections, could face challenges in getting the same level of cooperation, potentially complicating the process and placing more responsibility on the selling agent, who ultimately represents the seller.
Final Thoughts
Perth’s property market requires a deep understanding of local dynamics, from knowing which suburbs have long-term growth potential to understanding specific property risks. A Perth-based buyer’s agent brings this local expertise to the table, ensuring you make informed, secure decisions when purchasing property. If you’re looking to buy in Perth, engaging a local buyer’s agent is the best way to protect your investment and achieve your property goals.
Getting Started
If you’d like to learn more about premium home buying or property investment in Perth or clarify your buying strategy and goals, feel free to call us on (08) 9381-7450 or fill in this no-obligation Getting Started form to get the ball rolling. If you’d like to learn more about property investment strategies, or you’d like to clarify your own strategy and goals, why not request our 4 Strategies Download. __________________________________________________________________________ 
Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area. Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide home buyers and property investors with the same level of representation that property sellers have benefited from for years.
