Searching for the ideal investment targets can be very time consuming and oftentimes frustrating. And the same can be said about putting a value on, and negotiating the price and purchasing terms of, your targets. That is why an increasing number of investors resort to hiring the services of independent search and buying agents.
Buyer’s agent vs. seller’s agent
A search and buying agent acts for you – you are the customer. Therefore there are no conflicts of interest. All potential targets are taken into consideration, regardless of who the seller is; and the best possible price can be achieved, because the agent not only is not under pressure from the seller, but also will usually be able to obtain discounts from both the seller and the seller’s agent or broker.
On the other hand, if you limit your search to the targets that are listed by the sellers’ agents or brokers and then negotiate your purchase directly with them, you will be not only limiting your choice, but also reducing your chances of achieving the ideal price, especially if you are not familiar with the market’s specificities and culture.
Cost – what cost?
The good news is that search and buying agency fees will as a rule be more than offset by the choice of targets and the price discount that the agent manages to obtain from the seller. So in practice the price of a search and buying service will, so to speak, be negative or, at least, a zero cost option.
Under a search agency agreement, your chances of finding investment targets that match your exact requirements are dramatically increased, because your agent will not only search advertised targets, but also have access to off-market, privately available targets. Besides, if your time is important to you, you can reduce your involvement to the very minimum, because your agent will not only provide a full search service, but will also contact the sellers or their agents so as to obtain additional information and make the viewing appointments for you, at your convenience.
Having used a search agency service, under a buying agency service agreement your chances of buying an investment target that matches your exact requirements for the best possible price are dramatically increased, because your agent: (a) is totally independent from sellers and their agents and is therefore in a position to provide unbiased advice and guidance; (b) is generally able to anticipate potential problems with a particular target and use that to either lower the asking price or else advise you against a purchase; (c) can recommend able professionals to conduct specific surveys or other due diligence that may be advisable; (d) being totally independent, through a deep knowledge of the market and acquired negotiating skills, will generally be able to obtain a discount far in excess of the agency fee.
Belion Partners’ services
Belion Partners has teamed up with professionals that have a deep knowledge of the Portuguese real estate and SME markets, and are therefore in a position to offer top quality property and SME search and buying agency services.
Belion Partners will gladly provide a preliminary analysis of your requirements, free of charge and on a noncommittal basis, so as to determine whether these can be realistically met under current market conditions. Click here to submit your property requirements or contact us if you intend to buy a business.