What is a Buyers Agent?
If you’re not in the real estate profession, you probably haven’t heard of a Buyer's Agent. Just like real estate agents who help you sell a property, a Buyer's Agent, or Buyer's Advocate, is a licensed professional who works for you and acts on your behalf to search, evaluate and negotiate a property purchase. They aim to ensure you’re as fully informed as possible and that you don’t overpay.
Buyer's Agents can offer either full or partial services to help you find the ideal property for the ideal price in the ideal location! Full service means the Buyer's Agent manages the entire process for you, which includes:
A ‘wish list’ analysis to understand your requirements to determine your ‘needs’ versus ‘wants’
Search available listings
Inspect and short-list suitable properties
Evaluate recent sales data and provide a written appraisal
Oversee and arrange due diligence such as building inspections, pest, survey and engineering reports
Negotiate the property purchase price and terms
Oversee the contracts and exchange
Pre-settlement inspections Settlement
Why use a Buyers Agent?
Buyer's Agents are licensed professionals who specialise in searching, locating, evaluating and negotiating the purchase of property on behalf of buyers. They do not sell real estate. They are engaged independently and paid for by the buyer to act on their behalf.
The key difference between a selling agent and Buyer’s Agent is who they represent as, by law, an agent cannot act for and accept a commission from both parties in the same transaction.
Buyer's Agents offer a number of different service options, ranging from complete searches through to auction bidding and single property reports. Their aim is to ensure that the purchaser is as fully informed as possible and doesn’t overpay for the property. Having an experienced Buyer's Advocate on side who is familiar with suburb values and the purchasing process also assists in maintaining objectivity when it comes to negotiating the best possible outcome.
Benefits of using a Buyers Agent
A few key ways a Buyer's Agent can help you:
Gain an edge by having your own advocate who is representing your interests 100% throughout the purchasing process. Understand the complexities and processes of buying by providing objective information, advice and support. Save time by searching for and analysing property on your behalf. Having someone do this for the buyer often results in a more efficient and faster outcome. Negotiate to obtain the very best price and terms. Source the correct property in the right location with better prospects for capital growth and/or rental yield. Access databases and information not readily available to the public, including increased access to properties off market. Eliminate stress by having one representative looking after your needs, rather than dealing with several different selling agents.
How do I choose a Buyers Agent?
Choose your Buyer's Agent carefully. Many real estate agents profess to be Buyer's Agents as well. You cannot act for both the seller and the buyer. What you should ask is do they sell real estate? Selecting the right agent is likely to result in you making the right purchase at the right price, saving you both time and money.
The results achieved by a Buyer's Agent will benefit you in the long-term and should amount to substantially more than the fee.
Another 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.
Independent buyer’s agents do not sell real estate or accept any fees for doing so.
Of course you should also "like" and "want" to work with your Buyer's Agent - this should be a fun experience! So spend some time - have a good chat with them and see if you click! Make sure you are not just a number who is handed off and rushed through the process!