Should you consider using a Buyers' Agent?
May 1, 2011 / Written by Thirst Creative
By Rich Harvey, CEO and Founder www.propertybuyer.com.au
Why use a buyers agent?
Buyers' agents are licensed professionals that represent investors, home buyers and developers in purchasing residential and commercial real estate. A Buyers’ Agent specializes in searching, evaluating and negotiating the best possible price on behalf of the buyer. They do not sell real estate. The key difference between a buyers’ agent and a traditional selling agent is who they represent. A buyers’ 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.
A professional buyers’ 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. At Propertybuyer we give our clients objective feedback without fear or favour!
Buyers’ 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 buyers’ 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.
Many think that using the services of a buyers’ agent is too expensive. This is not the case. Buyers’ agents can save you money, time and stress, whatever your budget. In most cases they will save you the fee and provide a whole lot more benefits. In the US, over 50% of the population uses a buyers’ agent to assist in the purchasing process.
Buyers’ 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 buyers’ 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.
An important question to ask a buyers 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. Only deal with a licensed buyers’ agent. You can check licenses via the Office of Fair Trading in each state. Only use one that is a recognised member of your state Real Estate Institute and the Real Estate Buyers Agents Association of Australia.
Here are 7 key reasons why you should use a buyers’ agent:
- Gain access to a wider choice of properties (off-market/ silent listings) via the buyers’ agent network.
- Leverage your time – instead of searching the newspapers and internet every weekend, get someone else to do the hard work short listing suitable properties.
- 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 buyers’ needs.
- Have an independent professional buyers' agent working on your side
- Source the right type of property in locations with good prospects for capital growth
- Help investors build their property portfolio faster by buying in high growth and high yield areas.