Long-term investments should be approached carefully. But with the right information and support, any investment can pay off in time. Choosing a buyer’s agent to help you navigate purchasing property is becoming increasingly popular for both investors and buyers alike because of how much work they do on your behalf while also making sure that you get what best suits your needs as an individual or company buying real estate.
A buyers agent is someone who chooses to act for the buyer and not the seller in a property transaction. A licensed buyers agent charges you an exclusive service fee, so they are driven by your interests instead of their own personal ones. They should be positioned alongside you so that together as partners you can work towards getting what both parties want out of this property transaction.
Fees for a buyers agent can be fixed. Alternatively, they can also be a percentage that’s based on the level of service provided. For example, you may be paying for a service that can range from negotiation only, assessment and negotiation, or a full property search, assessment and negotiation all rolled into one service. Just remember that it is illegal for a buyers agent to get commissions from both parties involved in a property transaction. So make sure that your buyers agent is working exclusively for you.
Buyers’ advocates are professionals when it comes to negotiating the most favourable terms for their clients. They study and understand all of the different sales tactics, which means they know how to judge a property’s value based on evidence rather than being swayed by an agent – something that can’t be said about your average buyer or seller! When buying property, buyers’ agents have the authority to act in accordance with what was agreed upon beforehand between them and you as a client (though not always legally binding).
It’s no secret that the property market is complex, but developers and selling agents have been trying to make it easier on buyers for decades. But with so many factors at play in today’s housing environment, you need a trusted real estate expert by your side – one who understands how quickly things can change (and will do their best to keep up).
With the vast number of agencies to choose from, finding a buyer’s agent can be difficult. To help you make the best decision possible, REBAA (The Real Estate Buyers Association of Australia) offers lists of trusted and licensed agents that are vetted by their professionals who specialise in this field.
How some buyers agents can mislead you
Brokers, property spruikers and project marketers are all well-versed in smoke and mirrors rhetoric. There is a lot of confusion surrounding the term buyer’s agent so it’s important to be cautious when engaging with these people which often leads to disappointment for buyers who may not understand what they’re getting into.
The laws and terminology for real estate across Australia can vary from state to state. So it’s always best to check with local government websites if you’re planning to buy property. Something that’s really important to check is the transparency standards that any property transaction should meet. One of the most important rules to consider is that a buyers agent must act on behalf of their client exclusively. A buyers agent should never accept any form of payment from a real estate agent or property developer that’s involved with your property purchase.
So remember there is a big difference between “buyers agents” and selling agents. The former are paid by the client, while the latter get commissions from either sellers or real estate firms to promote their properties. Be wary when you encounter an individual who offers free advice about what property to buy; they may be trying to mislead you into choosing one that makes them more money in commission fees.
Here are just some of the questions we recommend you ask when choosing a buyers agent in Melbourne:
- How do you get paid and who do you receive payments from?
- Who are you legally allowed to represent in this property transaction?
- Do you have a buyers agent licence and how long ago did you get it?
- How can I avoid overpaying for a property?
Remember that your buyers agent should be your partner in getting the dream property you want. While choosing a buyers agent you should also consider their personality and working style. If you end up hiring someone who is knowledgeable when it comes to real estate, remember that they may not understand your brief. So here communication is key. A good dynamic between you and your buyers agent will also help to ensure a higher level of service. With a good line of communication between you and the buyers agent, they should have no trouble telling you that they yes, they do accept commissions.