Can’t anyone buy a house? So why do you need a buyer’s agent?
Take a look at the benefits of using a buyer’s agent and how they can help you get a better property. What exactly do they do? Well, the answer is simple. They source properties for sale and help you get the best deal and making the entire process easier for you.
A buyer’s agent sources properties that are for sale:
1. Off market: this is a property that is for sale without a public selling campaign.
2. They can leverage relationships with real estate agents to gain access to properties which are coming on the market early, giving you a leg up on the competition.
3. Source property from many areas.
Use their investor know-how for their client’s benefit
Buyer’s agents have long-term experience in the do’s and don’ts of real estate investing. A lot of the bumps which will cost investors money over the life of a property can be solved by choosing the right property from the beginning.
They answer the difficult questions that make property buyers second-guess themselves like:
- Where to buy property to maximise capital growth?
- What makes a desirable property for a tenant?
- What makes a property attractive for resale?
- What is a low maintenance property?
- Can you subdivide the property down the track?
Negotiate for the buyer
On average, a good real estate agent negotiates one property sale each week. They are trained professionals who have practiced the art of emptying pockets. A typical homebuyer might only buy two or three properties in a lifetime.
Pitching the two parties against each other, the real estate agent would win more times than they lose.
A buyer’s agent represents the buyer during a negotiation. They have all the same skills as a real estate agent and know what needs to be done to help you win the best deal.
Any buyer that has bid at an auction understands how hard it is. The pre-auction nerves and the risk involved.
A buyer’s agent makes sure your auction ready, they make an auction plan, mapping out a bidding plan and in most case are able to stop an auction before it even starts with a private negotiation.
The risk side of an auction comes from unconditional purchasing. If you win an auction you have to pay a 10% deposit on the day. The buyer also forfeits the right to cool off on the property; the sale is not subject to finance or a building and pest inspection. A buyer’s agent will make sure these factors are taken care of prior to the auction.
Take the emotion out of it
Many buyers that spend a lot of time on the market can lose their ability to think clearly about a decision. An outside party, like a buyer’s agent, has the ability to see the warning signs of a dangerous purchase and stop yours from making a rash decision.
Most people are time-poor
For any buyer that works full time, it’s difficult to spend a large part of your weekend looking for property. This process can drag out for months with no result.
A buyer’s agent spends their working hours sourcing and inspecting real estate so their clients don’t have to.
How much do buyer’s agents charge?
Fee’s for a buyer’s agent can vary from agency to agency. Many buyer’s agents charge a percentage of the sale price, more commonly know as a commission model.
If your in the market for a buyer’s agent your best bet is to hire one that offers a fixed rate regardless of how much money your spending or how long it takes to purchase a property.
How do I find a buyer’s agent?
It’s important to find a buyer’s agent that has local experience in an area your interested in. You can do this by checking Google, simply search the term, buyer’s agent, and the suburb you’re interested in.
Top 10 Benefits Of Using A Buyer’s Agent
1. Save money, negotiating power.
2. Less time looking for property.
3. Reduce the risk and buy a better property.
4. Access to off-market property.
5. Reduce stress through the buying process.
6. Don’t have to deal with real estate agents.
7. Don’t miss out on a dream purchase.
8. Their fees are tax deductible for investor buyers.
9. They bid for you at auction.
10. They do all the paperwork/contract of sale.
During a selling or buying process, the scales seem to be tipped in favor of a property seller. Using a buyer’s agent levels out the playing field for the buyer as there employed to look after the interest of there clients.
About The Author
Mark Ribarsky is the founder of Wise Real Estate Advice Pty.Ltd Melbourne’s leading buyer’s agency and property management company. Mark has a Bachelor of Business, a fully licensed estate agent and is a residential property developer.