Investment Property Buying

The Mistake of Not Using an Investment Property Buyer’s Agent

Buying an investment property without a buyer’s agent is possible, and many investors choose to manage the process themselves. The risk begins when confidence is greater than the research, local knowledge, negotiation experience or time available to complete the purchase properly.

Key Takeaway

An investment property buyer’s agent may add value through strategy alignment, market research, property assessment, negotiation, due-diligence coordination and process management. Whether the service is worthwhile depends on the investor’s experience, available time, local knowledge, buying brief and the quality and independence of the provider.

Before You Decide

Do not judge a buyer’s agent only by the fee, testimonials or promises of off-market access. Review the work that will actually be completed.

1Define the gap: Identify whether you need education, research, search, assessment, negotiation or full acquisition support.
2Check independence: Understand who pays the buyer’s agent and whether commissions or referral arrangements exist.
3Compare the scope: Confirm what is included, excluded and completed by third-party professionals.

Can You Buy an Investment Property Without a Buyer’s Agent?

Yes. A buyer’s agent is not compulsory, and engaging one does not guarantee that a property will perform well. Investors who have sufficient time, local knowledge, negotiation experience and a disciplined due-diligence process may be comfortable managing the purchase independently.

The better question is whether the investor can complete every stage of the process to an appropriate standard without allowing urgency, emotion, fatigue or incomplete information to weaken the decision.

A do-it-yourself purchase may involve setting the strategy, arranging finance, selecting locations, researching markets, finding properties, assessing value, attending inspections, coordinating reports, negotiating terms and managing the purchase through to settlement.

Buying independently can avoid a professional fee, but only when the investor performs the work rather than simply skips it.

The Real Cost of Buying Without a Process

The obvious cost of using a buyer’s agent is the professional fee. The less obvious costs of buying without a structured process can include overpaying, purchasing the wrong property type, missing defects, selecting a weak location, losing suitable opportunities or reducing future borrowing flexibility.

Not every mistake can be prevented, and a buyer’s agent cannot remove market risk. However, a repeatable process can reduce the likelihood that a decision is driven by poor evidence, inconsistent analysis or pressure from the sales process.

Time cost Hours spent searching, inspecting, comparing sales and speaking with agents.
Opportunity cost Suitable properties may be missed while the investor researches slowly or inconsistently.
Pricing risk An unsupported offer may result in overpaying or repeatedly missing realistic opportunities.
Due-diligence risk Important legal, building, strata, insurance or location issues may be overlooked.
Portfolio risk A property may look attractive by itself while weakening cash flow or future options.
Emotional cost Long searches and failed offers can create fatigue, urgency and inconsistent decisions.

Education Is Useful, but It Is Not the Same as Execution

Courses, podcasts, books and property data platforms can improve an investor’s knowledge. They can explain market indicators, cash flow, yields, lending concepts and common risks.

The difficulty is applying that information to a live property under time pressure. A buyer still needs to decide which evidence matters, recognise when the data is incomplete, compare property-specific differences and negotiate without becoming attached to the outcome.

Education may teach an investor to review comparable sales. Experience helps determine which sales are genuinely comparable, how condition and position affect value and whether current competition has changed since those sales occurred.

Investors who want to remain hands-on but strengthen their process may find property mentoring more suitable than a full acquisition service. The right level of help depends on whether the main gap is knowledge, confidence, time or execution.

What an Investment Property Buyer’s Agent Actually Does

The exact service varies between providers, so the engagement agreement matters. A full-service buyer’s agent may assist from strategy and brief development through to property search, assessment, negotiation and settlement coordination.

Buying brief Translate goals, budget, finance position and risk limits into practical property criteria.
Market research Compare locations, demand, supply, pricing, rental conditions and relevant local risks.
Property search Review advertised, pre-market and agent-network opportunities against the agreed brief.
Property assessment Analyse value, rent, condition, layout, location and suitability before recommending action.
Negotiation Develop an offer strategy based on evidence, market conditions and the investor’s limit.
Process coordination Help organise inspections, reports, advisers and communication through to settlement.

A buyer’s agent is not the lender, accountant, solicitor, conveyancer, financial adviser, valuer or building inspector. A sound acquisition process uses the right specialist for each issue.

The Ten Stages of a Disciplined Property Acquisition

A useful way to assess a buyer’s agent is to understand where they contribute across the complete acquisition process. The service should be more than forwarding listings and making offers.

1Strategy clarification: Define what the property is expected to contribute to the investor’s plan.
2Finance confirmation: Establish the practical budget, borrowing conditions and required buffers.
3Brief development: Set location, property, financial and risk criteria.
4Market selection: Compare locations using demand, supply, affordability and risk evidence.
5Property sourcing: Review suitable opportunities from public and agent channels.
6Property assessment: Test value, rent, condition, layout, risks and portfolio fit.
7Due diligence: Coordinate independent legal, building, pest, strata, finance and insurance checks.
8Offer strategy: Set the price range, conditions, terms and walk-away position.
9Purchase management: Coordinate communication, contract milestones and settlement preparation.
10Post-purchase review: Record what worked, what changed and what should improve next time.

Build the Buying Brief Before Looking at Listings

A weak buying process often starts with browsing listings before the investor has defined what the next property needs to achieve. This makes it easy to become attached to a property and adjust the strategy afterwards.

A strong brief should contain more than a suburb list and bedroom count. It should state the intended role of the property, the financial limits, acceptable risks and reasons the buyer should walk away.

Strategic role Clarify whether the property is intended to support growth, cash flow, diversification or another objective.
Purchase range Define a realistic budget that includes acquisition costs and required reserves.
Holding tolerance Set an acceptable range for repayments, expenses, vacancy and maintenance.
Location criteria Identify the demand drivers, supply conditions and local risks that matter.
Property criteria Define the dwelling type, layout, condition, land and tenant appeal required.
Rejection rules State which defects, risks, price levels or compromises make the property unsuitable.
A buyer’s agent should be able to explain why a property fits the brief. The recommendation should not rely only on general statements about future growth, scarcity or off-market access.

The Main DIY Buying Risks

The greatest risks are not limited to choosing the wrong suburb. They can appear throughout the process, from the first search filters to the final offer.

1Weak brief: Searching without clear criteria makes it easier to justify whichever property feels most appealing.
2Incomplete research: Data can be collected without understanding supply, local differences or property-specific risk.
3Overpaying: Urgency and competition can push an investor beyond the price supported by comparable evidence.
4Missed defects: Cosmetic presentation can distract from building, strata, maintenance or planning concerns.
5Poor portfolio fit: A property may appear attractive by itself while reducing cash flow or future flexibility.
6Search fatigue: Months of inconsistent searching can lead to compromise or emotional decision-making.

Market Research Is More Than Choosing a Fast-Growing Suburb

Investors are often drawn to suburbs with strong recent price growth, high advertised yields or positive media coverage. Those indicators may be relevant, but they do not provide a complete investment case.

Market research may consider employment, population, household demand, rental conditions, supply pipelines, development activity, infrastructure, insurance exposure, buyer depth and differences between neighbourhoods within the same suburb.

It should also examine whether the selected property type suits the local tenant and resale market. A strong suburb does not automatically make every dwelling a suitable investment.

A structured data-driven due-diligence process can help investors move beyond headlines and test the evidence supporting a location and property.

A Market Research Framework

No individual data point proves that a market will perform. The value comes from combining different evidence and identifying where the investment case may be weak.

Demand Consider population, household formation, employment, rental demand and buyer participation.
Supply Review current stock, approvals, construction pipelines and competing dwelling types.
Affordability Compare prices, rents, incomes and the depth of the likely buyer and tenant market.
Local economy Look for employment diversity rather than relying on one project or industry.
Infrastructure Separate confirmed and funded projects from proposals or promotional announcements.
Location risk Consider flooding, bushfire, insurance, planning, contamination and other local exposures.

Why Comparable Sales Require Interpretation

Online estimates and recent sales provide a starting point, but comparable evidence needs to be reviewed manually. Two properties in the same suburb can have different values because of land, condition, layout, outlook, street position, parking, zoning or renovation quality.

A sale from several months earlier may also reflect different supply and buyer competition. A property sold under unusual circumstances may not represent normal market value.

A buyer’s agent should be able to explain which sales were used, why they are relevant and how differences were considered when setting an offer range. Investors should be cautious when a recommendation relies only on an automated estimate or broad suburb median.

Ask to see the evidence behind the recommended price. A professional opinion should be supported by relevant comparable sales and a clear explanation of the property’s differences.

A Practical Comparable-Sales Checklist

Comparable sales are most useful when the selected properties genuinely resemble the property being assessed. The buyer should understand why each sale was included.

1Recency: How long ago did the comparable property sell?
2Location: Is it in the same pocket, school zone or micro-market?
3Land: Are the block size, shape, slope and access broadly similar?
4Dwelling: Are the size, age, condition, layout and parking comparable?
5Position: Are views, noise, traffic, orientation and neighbouring uses similar?
6Sale circumstances: Was the sale normal, urgent, off-market or otherwise unusual?

Negotiation Is More Than Making a Low Offer

Many investors assume strong negotiation means submitting a low opening price. In practice, an unsupported low offer may be ignored, while an aggressive offer can lead to overpayment if the investor has not set a walk-away limit.

Negotiation may involve price, settlement timing, finance conditions, deposit structure, access, inclusions and the vendor’s circumstances. The strongest position depends on the evidence and the priorities of both parties.

A buyer’s agent may negotiate frequently, but investors should still ask how the offer range was determined and which terms are being used strategically. The WTP guide to investment property negotiation explains why value, terms and discipline need to work together.

A successful negotiation is not simply one where the offer is accepted. The final terms must still support the investment decision.

What Should Be in a Pre-Offer Pack?

Before an offer is submitted, the buyer should have enough information to explain why the property fits the strategy and what would cause them to walk away.

1Brief summary: Explain how the property meets the agreed strategy and criteria.
2Comparable sales: Include the most relevant evidence supporting the price range.
3Rental evidence: Record the expected rent, source and any assumptions.
4Cost estimate: Include acquisition costs, known repairs and likely holding costs.
5Risk summary: Identify the main property, market, finance and due-diligence concerns.
6Offer position: State the opening offer, maximum price, conditions and walk-away rules.

Off-Market Access Should Not Be the Only Reason to Engage

Some buyer’s agents have relationships with sales agents and may hear about properties before they are widely advertised. That access can be useful, but an off-market property is not automatically a better property or a better deal.

The same assessment should apply whether the opportunity is advertised, pre-market or private. The property still needs to fit the brief, be supported by value evidence and pass the required checks.

Investors should be cautious of services that rely mainly on the promise of exclusive access. The greater value may come from screening out unsuitable properties, interpreting evidence and maintaining negotiation discipline rather than simply presenting more listings.

Due Diligence Must Remain Independent

A buyer’s agent may coordinate due diligence, but the relevant legal, finance, tax, building, pest and strata advice should come from appropriately qualified professionals.

The buyer should understand which checks are included, which professionals will be engaged and whether the investor is free to choose their own advisers. Referral relationships should be disclosed clearly.

Contract and title Use a solicitor or conveyancer to review legal obligations, title and contract conditions.
Building and pest Use qualified inspectors to assess defects, damage and maintenance concerns where relevant.
Strata review Review records, levies, capital works, disputes and building issues before buying into a scheme.
Finance review Confirm serviceability, loan conditions, buffers and valuation risk with a licensed professional.
Tax and structure Obtain personal advice before deciding on ownership, tax treatment or investment structures.
Insurance Check insurability, premiums, exclusions and location-specific exposure before commitment.

A Property-Level Due-Diligence Checklist

The exact checks depend on the property type, location and contract. This checklist is a starting point rather than a substitute for professional advice.

1Physical condition: Review the building, roof, drainage, services, pests and visible maintenance.
2Legal title: Check easements, covenants, boundaries, restrictions and contract conditions.
3Planning: Review zoning, approvals, overlays and surrounding development risk.
4Strata: Examine levies, capital works, defects, insurance, disputes and committee records.
5Rental position: Test rent evidence, vacancy, tenant demand and property-management assumptions.
6Insurance: Confirm cover availability, exclusions, excesses and likely premium.
7Holding costs: Include rates, strata, insurance, maintenance, management and vacancy.
8Exit market: Consider the depth of future buyer demand and potential resale constraints.

When a Buyer’s Agent May Add the Most Value

Professional support may be especially useful when the investor’s main constraints are time, local knowledge, negotiation experience or the ability to assess properties consistently.

1You are buying interstate: Local inspection, agent relationships and neighbourhood knowledge may be difficult to build remotely.
2You have limited time: The search, inspection and assessment process may conflict with work or family commitments.
3You lack negotiation confidence: You may struggle to set a limit or maintain discipline under pressure.
4You are overwhelmed by data: You can access information but are unsure how to interpret competing indicators.
5You repeatedly miss properties: The issue may be pricing, offer terms, responsiveness or an unrealistic brief.
6The purchase has strategic consequences: One poor acquisition could place pressure on the wider portfolio.

When You May Not Need Full-Service Support

A full acquisition service may not suit every investor. Someone with strong local knowledge, enough time and a proven buying process may prefer to manage the search independently.

An investor may also need help with only one part of the process, such as strategy, property assessment or negotiation. In those circumstances, a limited-scope service or mentoring arrangement may be more appropriate.

You know the market You understand local values, property differences and current competition.
You have enough time You can inspect, analyse and respond to suitable properties without rushing.
You use a written process Your brief, due diligence and offer limits are documented and applied consistently.
You have advisers You already work with suitable finance, legal and property specialists.
You remain objective You can reject a property when the evidence or price no longer supports it.
You need targeted help A negotiation or assessment service may solve the actual gap more efficiently.

Full Service, Negotiation Only or Mentoring?

Not every investor needs the same service model. The best option is the one that addresses the actual weakness in the current process.

Full acquisition Suitable when the investor needs help with strategy, research, search, assessment and negotiation.
Appraisal and negotiation Useful when the investor has found a property but needs evidence and offer support.
Auction bidding May suit buyers who need disciplined representation at a specific auction.
Property review Provides an independent assessment of a shortlisted property before proceeding.
Mentoring Supports investors who want to learn and remain directly involved in the process.
DIY purchase May suit experienced investors with time, local knowledge and a reliable process.

How to Compare the Buyer’s Agent Fee

A fee should not be judged only by asking whether it is large or small. The useful comparison is between the cost, the scope of work, the quality of the process and the alternative cost of managing the purchase independently.

The investor should understand whether the fee is fixed, percentage-based or staged, and whether additional charges apply for inspections, reports, auctions or travel.

1Service scope: Does the fee cover strategy, research, search, assessment, negotiation and settlement support?
2Time saved: How much search, inspection, analysis and communication work is likely to be required?
3Risk process: Does the service provide stronger assessment and independent challenge?
4Opportunity cost: Could a slow or inconsistent search cause suitable properties to be missed?
5Independence: Is the buyer’s agent paid only by the buyer, with all referrals disclosed?
6Exit terms: What happens if no property is purchased or the investor pauses?

A buyer’s agent should not be selected because they promise to save more than their fee. The fee should be assessed against the quality and completeness of the service without relying on guaranteed savings or growth.

A Buyer’s Agent Value Worksheet

This worksheet can help compare the service more objectively. It is not a financial calculation or guarantee. Its purpose is to identify where the proposed value is expected to come from.

Research value Would the service provide analysis that the investor cannot complete confidently?
Search value Would it materially improve speed, coverage or access to suitable opportunities?
Assessment value Would the service identify risks or pricing issues the investor may otherwise miss?
Negotiation value Would independent representation improve discipline and offer execution?
Time value How much personal time would be required to complete the same work properly?
Learning value Will the investor understand the evidence and improve their own process?

Questions to Ask Before Appointing a Buyer’s Agent

Different services use similar marketing language, so the investor should ask detailed questions before signing an engagement agreement.

1Who performs the work? Confirm whether the person selling the service will also research, inspect and negotiate.
2How is the brief developed? Ask how finance, goals, risks and portfolio fit become practical criteria.
3Which markets are covered? Understand how locations are selected and whether the service is limited to preferred regions.
4How is value assessed? Ask to see the process for selecting and adjusting comparable sales.
5How many clients are active? Confirm whether the team can inspect and respond promptly.
6Are commissions received? Ask about developer, sales-agent, broker, manager or adviser payments.
7What is excluded? Confirm which reports, advice and costs remain the investor’s responsibility.
8What are the cancellation terms? Review the agreement carefully before paying an engagement fee.

Check Licensing, Insurance and Complaints Processes

Buyer’s-agent regulation differs between Australian states and territories. Investors should confirm that the provider holds any required licence or authority for the location in which they operate.

It is also reasonable to ask about professional indemnity insurance, the legal entity named in the engagement agreement, complaint handling and how client money is managed where relevant.

Check the provider, not only the brand. Confirm the licensed entity, responsible agent, engagement terms and the people who will actually perform the work.

Understand Conflicts of Interest

A buyer’s agent should represent the buyer, but investors still need to understand commercial relationships that may affect recommendations.

Potential conflicts may include developer commissions, referral payments, preferred mortgage brokers, property managers, conveyancers, accountants or building inspectors. A referral is not automatically inappropriate, but the arrangement should be transparent.

1Who pays the fee? Confirm every source of income connected with the purchase.
2Is stock pre-selected? Ask whether recommendations are limited to properties or developers linked to the provider.
3Are referrals optional? Confirm that the investor can choose independent advisers.
4Are benefits disclosed? Request written disclosure of commissions, rebates or commercial relationships.

Warning Signs to Treat Carefully

Strong marketing does not necessarily indicate a strong buying process. Investors should look beyond testimonials, social-media content and the number of properties displayed online.

Guaranteed outcomes Promises of growth, equity, rent, savings or rapid portfolio expansion should be treated carefully.
Undisclosed commissions The investor should understand every source of payment or referral benefit.
One preferred property type The recommendation may be driven by available stock rather than the investor’s brief.
Pressure to proceed Urgency should not prevent legal, finance, valuation or building checks.
Vague due diligence The provider should explain which checks are completed and by whom.
No walk-away discussion A sound process should identify reasons not to buy as well as reasons to proceed.

DIY Buying Versus Buyer’s Agent Support

The choice is not simply between paying a fee and buying for free. Both paths involve time, responsibility and risk.

DIY advantage Lower direct professional cost and complete control over the search and decisions.
DIY trade-off Greater time commitment and responsibility for research, inspections and negotiation.
Supported advantage A structured process, market interpretation and experienced negotiation support.
Supported trade-off A professional fee and reliance on the competence and independence of the provider.
Hybrid option The investor searches independently but obtains targeted assessment or negotiation support.
Mentoring option The investor remains hands-on while learning and applying a disciplined process.

A Practical Readiness Test for DIY Investors

Before deciding to buy independently, answer these questions honestly. A weak answer does not automatically mean a buyer’s agent is required, but it identifies where more work or support may be needed.

1Can I explain the brief? The strategy, criteria and rejection rules are written clearly.
2Can I assess value? I can identify relevant comparable sales and explain property differences.
3Can I assess the market? I understand local demand, supply, rental conditions and major risks.
4Can I act promptly? I have time to inspect and analyse opportunities without rushing.
5Can I negotiate objectively? I can set and maintain a walk-away position under pressure.
6Do I have advisers? I know which finance, legal and building professionals need to be involved.
7Can I reject the property? I will walk away when the evidence, condition or price no longer fits.

A Decision Scorecard for Choosing Support

This scorecard can help clarify whether full-service support, a limited service or a DIY approach is more appropriate.

1Experience: Have I completed similar purchases using a reliable process?
2Market knowledge: Do I understand the local market at street and property-type level?
3Available time: Can I search, inspect and analyse consistently over several months?
4Objectivity: Can I challenge my own assumptions and walk away under pressure?
5Negotiation skill: Can I set an evidence-based offer and manage agent pressure?
6Professional network: Do I have suitable finance, legal and inspection professionals?
7Purchase complexity: Is this an interstate, unfamiliar or strategically important acquisition?
8Learning preference: Do I want the work completed for me or to improve my own skills?

How a Better Buying Process Reduces Regret

No buying process can remove every risk or guarantee that a property will grow or perform as expected. The purpose of professional support is to improve the quality and consistency of the decision.

A stronger process documents the brief, separates independent advice from sales information, compares properties using consistent criteria and records why the final offer is acceptable.

This makes it easier to distinguish between a poor decision and an unfavourable outcome. An unexpected market or personal event can affect a well-researched property, while a poorly researched purchase can still perform well in a rising market.

The standard should not be whether every purchase succeeds. It should be whether every decision was supported by a disciplined and explainable process.

Review the Purchase After Settlement

A post-purchase review can improve the next acquisition. It should examine the decision process rather than judging success only by short-term price movement.

1Brief accuracy: Did the property genuinely meet the original criteria?
2Research quality: Which market and property assumptions were correct or weak?
3Cost accuracy: Which acquisition, repair or holding costs were missed?
4Negotiation review: Was the final price and structure supported by evidence?
5Service review: Did the buyer’s agent or other advisers deliver the agreed scope?
6Process change: What should be added, removed or improved before the next purchase?

Choose the Level of Support That Matches the Problem

An investor who understands the market but dislikes negotiation may need a different service from someone with no time to search. Another investor may want education before they are ready to purchase.

Start by identifying the exact difficulty: strategy, market selection, research, search, property assessment, negotiation or process coordination. Then compare services based on how well they solve that problem.

For investors seeking full acquisition support, an investment property buyer’s agent may help with the brief, research, property assessment, due diligence and negotiation. That support should remain transparent, evidence-led and aligned with the investor’s goals.

Unsure whether to buy independently or use professional support? Review your strategy, available time, market knowledge and current buying process before deciding which level of help is appropriate.
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FAQs About Investment Property Buyer’s Agents

Do I need a buyer’s agent to purchase an investment property?

No. Investors can buy independently. A buyer’s agent may be useful when the investor lacks time, local knowledge, negotiation experience or a consistent process for assessing properties and managing due diligence.

What does an investment property buyer’s agent do?

The service may include developing a buying brief, researching markets, searching for properties, assessing value and rental suitability, coordinating due diligence and negotiating the purchase. The exact scope should be confirmed in writing.

Will a buyer’s agent always save more than their fee?

No. A buyer’s agent cannot guarantee savings or investment performance. The service should be judged on its scope, evidence, independence, process quality and whether it addresses the investor’s actual needs.

Do buyer’s agents have access to off-market properties?

Some may hear about pre-market or privately offered properties through agent networks. However, access varies, and an off-market property is not automatically a better investment or a lower-priced opportunity.

How do I know whether a buyer’s agent is independent?

Ask who pays them, whether they receive developer or referral commissions and whether all commercial relationships are disclosed. Review the engagement agreement and applicable licensing details before proceeding.

What should I ask before appointing a buyer’s agent?

Ask about the scope, fee structure, research method, active client load, markets covered, comparable-sales process, referral arrangements, professional advisers, exclusions and cancellation terms.

Can I use a buyer’s agent only for negotiation?

Some providers offer negotiation-only, auction-bidding or property-assessment services. A limited service may suit investors who can manage the search and research but need support with a specific part of the purchase.

What is the difference between property mentoring and a buyer’s agent?

Property mentoring generally focuses on education and helping the investor improve their own process. A full-service buyer’s agent usually performs more of the research, search, assessment and negotiation work on the client’s behalf.

Does a buyer’s agent replace a solicitor, broker or building inspector?

No. Legal, finance, tax, building, pest and financial matters should be reviewed by appropriately qualified professionals. A buyer’s agent may coordinate parts of the process but should not replace specialist advice.

How can I assess whether the buyer’s agent fee is worthwhile?

Compare the fee with the work included, the investor’s available time, the complexity of the search and the quality of the research and negotiation process. Avoid relying on promises of guaranteed savings or growth.

Can an experienced investor still benefit from a buyer’s agent?

Yes. Experienced investors may use a buyer’s agent to save time, enter an unfamiliar market, manage an interstate search or obtain independent assessment and negotiation support. Others may prefer to continue buying independently.

How long should it take a buyer’s agent to find a property?

There is no universal timeframe. The search may depend on the brief, market conditions, budget, property availability and the investor’s willingness to wait. Be cautious of guaranteed timeframes that may encourage compromise.

Should a buyer’s agent recommend one suburb or several options?

The recommendation should follow the agreed strategy and research process. The investor should understand why a location is preferred, which alternatives were considered and which evidence supports the decision.

What should happen if the buyer’s agent recommends a property I do not like?

The buyer remains responsible for the final decision. Ask the buyer’s agent to explain how the property meets the brief, then review the evidence and concerns. A good process should allow the client to reject a property without inappropriate pressure.

What is the biggest risk of buying without professional support?

The biggest risk is not the absence of one particular professional. It is proceeding without a clear brief, reliable evidence, appropriate specialist advice or enough time and discipline to complete the process properly.