Buyer’s agents, or buyer’s advocates, are becoming more and more popular in the property purchasing industry. But who are they really, and do you need one?
Firstly, a buyer’s agent is a licensed professional with extensive industry knowledge. They are hired by homebuyers to alleviate some of the stresses that come with buying a property.
They live and breathe property and can help search, evaluate and negotiate a property on behalf of the buyer.
While a selling agent works for the seller of the property, a buyer’s agent works for you, the buyer. It is their priority to ensure you find your dream home at the best price.
What does a buyer’s agent do?
A buyer’s agent generally offers two types of services – a full service and an auction service.
How much does it cost?
The price of a buyer’s agent varies from agent to agent. Some will charge an engagement fee before they begin the search for a home, while those getting the ‘full service’ will usually pay a flat fee or a percentage of the property purchase price.
To use a buyer’s agent just to bid at an auction on your behalf will come with a lower price tag.
Keep in mind; all fees may be tax deductible if the property is an investment.
Why use a buyer’s agent?
Access to off-market properties
A good buyer’s agent will have connections throughout the real estate industry. They will have inside knowledge of market trends in the area, as well as exclusive access properties not on the market yet.
They save you precious time
One of the most difficult parts of purchasing property is working around busy work, family and life schedules. Finding the perfect home usually involves scrolling through thousands of properties online for hours, weeks, or even months.
Tell a buyers agent exactly what you are looking for, and they will do the searching for you saving you countless of hours – with the added bonus of full access to off-market stock.
They can give insider tips
If you are buying an investment property, a buyer’s agent will be a valuable asset to you. They can help you source the right type of property in the right locations with great opportunities for capital growth.
A buyer’s agent has a deep understanding of the property market and will ensure you make the best decision, financially.
They are expert negotiators
This is one of the most common reasons people use a buyer’s agents – to help them through the auction and negotiation process. First homebuyers, in particular, often all into the trap of putting too much trust into their selling agent.
Bidding at auction can be an emotionally daunting task, with buyers often making decisions with their hearts instead of their head. Emotion can be the biggest price drive when purchasing a property, and it can seriously cost a buyer in the long-term.
Enlisting the help of a buyer’s agent will help avoid any of these issues occurring and ensure a buyer makes the best decisions when it comes to purchasing a home.
Buyer’s agents are there to guide the buyer, keep a logical mindset and keep the emotion out of the transaction, therefore buying at the lowest price.
They also know all the tricks to the trade and often use their expert negotiation skills to get a better-than-expected purchasing price.
How do you find a buyer’s agent?
Do you research! Ask friend and family if they have any recommendations – word of mouth is the best way to find a great buyer’s agent.
Always read testimonials on a buyer’s agent websites to see if others have had satisfactory results.