Two decades ago, most people would have never heard of a buyer’s agent. The thought of paying someone to help you buy a property just didn’t make sense. Can’t anyone buy a house?
In 1990, houses were three times cheaper than today, that means a lower mortgage repayment, lower stamp duties and banks were flexible with lending. Getting into the market was easy and fairly low-cost.
In 2019 buying property has become a complex task that requires a lot of skill to be done correctly. Homes have become expensive so buyers may only buy one in their lifetime. Learning from your mistakes after you have purchased can be costly.
Why? The high cost of property, stamp duties, selling fees and home loan repayments really force buyers to stay put. Therefor it is wise to buy the best property possible to save money in the long run.
So hiring professionals to help you, makes sense.
Doesn’t a Real Estate agent help me buy?
A real estate agent services the vendors or property seller. Ultimately, their job is to empty a buyer’s pockets for the benefit of the vendor. A buyer’s agent is the exact opposite of a real estate agent. A buyer’s agent services the needs of the property buyer.
Real Estate Agents Tasks:
Think of how a real estate agent represents all activities of a property seller. From marketing, listings a property for sale, dealing with buyers and negotiating the highest price from the buyer.
The buyer’s agent works in a similar way except only represent the best interest of their clients, the property buyer. Their job is to source high quality property to purchase on or off market, then negotiate the best price and terms that favor their clients, the property buyer.
A buyer’s agent should improve your total buying experience by:
Speeding up the buying process,
Elevating a buyers stress and increasing their confidence during critical times.
Reducing risk to unforeseen mistakes.
Do they save you money?
A good buyer’s agent should save you money in a number of different ways:
Their skill should be good enough to reduce the asking price of a property.
They should be able to purchase a property that requires less maintenance over the long term.
The property they select should be one that’s in high demand for the suburb, hence when the property re-sells in the future, you will achieve a higher price with a shorter time on market.
How much do they charge?
Fees can vary from agency to agency. Generally, most buyer’s agents charge percentage of the property value once a sale is achieved. Other buyer’s agents offer a fixed rate, with a no more to pay. Which ever fee structure you choose, a buyer’s agent should cost in the range of $6000 to $12,000.
Do buyer’s agents attend auction?
A buyer’s agent stands between the property buyer and real estate selling agent. They’re authorized to act on their client’s behalf during property selection, negotiation, filling out contracts and yes, bidding at auctions
Every buyer finds it incredibly tough to bid at an auction so it’s a great perk of the service.
How do you find a good buyers agent?
The best place to start is Google, check out buyer’s agent reviews and see what the public have to say about their experience with the agent.
Nothing beats local experience, so focus on Melbourne based agencies that aren’t trying to take over Australia.
Make sure they are a part of an ethics association like the Real Estate Institute of Victoria.
About The Author. Mark Ribarsky, a Bachelor of Business, is the founder of Wise Real Estate Advice (https://wiserealestateadvice.com.au) & Property Managers Melb (https://www.propertymanagersmelb.com.au). He is an experienced residential property developer, a fully licensed real estate agent, a buyer’s agent and property manager.