Buyer’s agents are also called buyer’s advocates; these licensed professionals specialise in searching and evaluating as well as negotiating the purchase price of property- they act on behalf of the buyer. They are not real estate agents who largely represent the property’s seller; on the other hand, a buyer’s agent looks after the interests of the person who is buying property.
How Much Do They Charge?
Certain buyer’s agents will charge an engagement fee that has to be paid before they start searching a property for you. Clients who want a full-service may pay a flat fee/percentage of the purchase price of the property. If you use a buyer’s agent to bid on your behalf at an auction, the fee will be much lower as the time involved is less. If you are purchasing an investment property, their fees could be tax deductible.
Benefits of Hiring a Buyer’s Agent
Overseas buyers who are purchasing a home or investment property in Australia may wonder whether they really need to hire a buyer’s agent. The fact is that there are a number of benefits to hiring one. Take a look at what these are:
#1 Early & Wide Access
When you hire a well-established buyer’s agent, he/she will have access to a much wider-range of properties compared to what you will be able to independently scope. At times they have access to properties that haven’t even been advertised. These agents have very strong connections in the market and use these to connect you with suitable opportunities (ahead of other agents in the market).
When a professional seeks out a property that matches your requirement; it saves you a lot of time in terms of looking at multitudes of properties and short-listing them. This also reduces the amount of stress you go through and the efforts you put into the exercise. You will find that you have more time to attend property inspections and can focus only on ones that are more suitable to your needs.
Of course, in this day and age where so many things are technology-driven, you will find a lot of data and a number of tools that can help you make smarter and more informed property-buying choices, but it still becomes a time-consuming proposition; and if that work can be outsourced to someone who works with your interest in mind, then why not?
#3 Investment Property
If you are buying investment property, you should connect with buyer’s agents who specialise in these. They will be able to help with sourcing the right kind of property that has good capital growth prospects. They have a good understanding of market indicators. In addition to working from your requirements, they also look for ways and means of optimising your property shortlist based on the experience they have in the field. In the long-term, this saves you a considerable amount of stress and money and lessens your chances of making a bad investment decision.
#4 Bidding & Negotiating
This is one of the important reasons for using a buyer’s agent. The person will be able to support you while an auction is underway as well as with the negotiation process. It can be quite intimidating and daunting to bid at an auction. It’s a definite advantage to have a person who is objective, to be there and represent your needs at that crucial time.
An experienced buyer’s agent will have the emotional detachment, tactics and confidence to represent you at an auction. The agent understands how the entire bidding process works and many also insist that they can get a their clients very low purchase prices (even below what they’re willing to pay).
How Can you Find the Right Buyer’s Agent?
It’s best to ask family and friends or anyone you trust, whether they are able to recommend a reliable buyer’s agent. Word-of-mouth becomes one of the best ways of tracking down an agent who has a good market reputation. You should check whether they work in the specific areas you are want to buy in. There is no doubt about the fact that a buyer’s agent is a valuable resource when you are purchasing property from overseas.
Thanks for reading,
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