When you’re buying property it would be valuable to have some advice and information from someone “in your corner”. An exclusive buyer’s agent works for you, not the seller, and can be a worthwhile investment.
Buyer’s agents are licensed professionals that specialise in searching, evaluating and negotiating the purchase of property on behalf of the buyer. They do not sell real estate.
The key difference between a buyer’s agent and a traditional selling agent is who they represent. A buyer’s agent works exclusively for the buyer, whereas the selling agent works for the vendor (seller). By law an agent cannot act for (and accept a commission) from both parties in the transaction.
Outline of services
Most buyer’s agents offer at least two levels of service:
The full search service, whereby the buyer’s agent actively searches the market and shortlists properties meeting the specific criteria of the client and then evaluates and negotiates the recommended property.
The negotiation or auction bidding only service – this is where the client finds the property and engages the buyer’s agent to evaluate and negotiate a private treaty or bid at auction.
Using a buyer’s agent to purchase real estate is becoming more widespread throughout Australia as investors and home buyers understand the benefits they provide. A professional buyer’s agent can provide you with all the knowledge you need to make an informed decision about the value of a property without all of the sales “hype” often generated by sales agents and glossy brochures.
Is it too expensive?
Many think that using the services of a buyer’s agent is too expensive. This is not the case. Buyer’s agents can save you money, time and stress, whatever your budget. In most cases they will save you the equivalent of their fee and provide a whole lot more benefits.
In the USA, over 50% of the population use a buyer’s agent to assist in the purchasing process.
Buyer’s agents can give you the upper hand by their understanding of the auction process, bidding tactics and by not being emotionally involved in the auction or negotiation process. For investors, the buyer’s agents fees are tax deductible.
Buyer’s agents generally charge an engagement fee before they begin the search. The fees are either a flat fee or a percentage of the property purchase price.
Are they Independent?
An important question to ask a buyer’s agent is whether they are truly “exclusive” or “independent”. If they accept sales commission from vendors or developers then they cannot be classified as “independent” as they are acting in the interests of the seller.
Why use a Buyer’s Agent
Here are the seven key reasons why you should consider using a buyer’s agent:
Choice. Gain access to a wider choice of properties (many not even advertised) via the contacts/ network of the buyer’s agent.
Leverage your time. Instead of searching the newspapers and internet every weekend, get someone else to do the hard work short listing suitable properties.
Lower price. Use a professional negotiator to obtain the lowest possible price.
Eliminate the stress and frustration of being shown inappropriate and unsuitable properties by selling agents that don’t listen to the buyer’s needs.
Expert on your team. Have an independent professional buyer’s agent working on your side.
Get the right home. Source the right type of property in locations with good prospects for capital growth.
Get the right investment. Help investors build their property portfolio faster by buying in growth areas.
Informed choice, lower price
Buyer’s agents will also ensure you don’t pay too much by providing background information about the true value of the property you are seeking to buy, so that you can make an informed choice.
If you choose a licensed, professional buyer’s agent, the saving you make on your next property could run into tens or hundreds of thousands of dollars, could be less stressful and is likely to take less of your precious time.
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