What is a buyers agent and what do they do?
A buyers agent is a professional who helps individuals or companies purchase real estate. They typically work with clients who are looking to buy residential or commercial properties and help their clients find suitable properties, negotiate the purchase, and manage the transaction process from start to finish.
They look after tasks including:
- Researching the market
- Identifying properties that meet your criteria
- Arranging viewings
- Negotiating offers
- Liaising with lawyers and other professionals involved in the transaction.
- Advice on issues such as financing, zoning, and building regulations.
What are the benefits of using a buyers agent?
There are strong benefits of using a buyers agent to help you find a property, especially if you are urgently looking for a property in a short period of time. They have the relevant contacts, knowledge and skills that can help you avoid a stressful buying process.
- Expert advice and guidance on the property market: A buyers agent has in-depth knowledge of the local property market, including current prices, trends, and potential pitfalls to watch out for. This can help you to make more informed decisions about which properties to consider and how much to offer.
- Negotiation support: A buyers agent can help you to negotiate the best possible price for a property, using their expertise and experience to get you the best deal.
- Time and effort savings: A buyers agent can save you time and effort by doing the legwork for you, such as scheduling viewings, coordinating with the seller's agent, and handling all of the paperwork and other logistical details involved in the buying process.
- Access to off-market properties: A buyers agent may have access to properties that are not publicly listed, giving you the opportunity to view and potentially buy these properties before they are available to the general public.
- Help with special situations: If you are buying a property under special circumstances, such as a probate sale or a short sale, a buyers agent can provide expert guidance and support to help you navigate the process.
What is the process of working with a buyers agent ?
Buyers agents can provide you with a list of properties that suit your specific needs and requirements, with their knowledge of the current market, understanding and insights, it can be generally a quick turnaround.
The process of working with a buyers agent in Australia when buying a home typically involves the following steps:
- Identify your property needs and preferences, including factors such as location, size, type, and budget.
- Select a buyers agent and establish a working relationship, including discussing your property needs and preferences, agreeing on fees and terms of engagement, and signing a contract or agreement.
- Search for properties with the assistance of your buyers agent, including receiving property recommendations and alerts, attending property inspections and open homes, and receiving advice and guidance on potential properties.
- Evaluate and compare properties, including reviewing property reports, market data, and other information provided by your buyers agent, and considering the potential pros and cons of different properties.
- Make an offer on a property, including negotiating the price and terms of the sale with the seller or their agent, and obtaining legal and financial advice as needed.
- Complete the transaction, including signing the contract of sale, arranging payment of the deposit and other costs, and coordinating with lawyers, lenders, and other parties to complete the purchase of the property.
How much does a buyers agent get paid?
According to the Real Estate Institute of Australia (REIA), the average cost of a buyers agent in Australia is around 1.5% to 4% of the purchase price of the property. The exact amount can vary, ranging from 1-3% for residential properties and 2-4% for commercial properties. Some buyers agents may also charge an hourly rate for their services
Example: If you were buying a property with a purchase price of $500,000, you could expect to pay between $7,500 and $10,000 in buyers agent fees.
Are buyers agents worth the money?
Whether or not hiring a buyers agent in Australia is worth the money will depend on your individual circumstances. If you are new to the property market, have a limited understanding of the buying process, or simply don't have the time to conduct the necessary research and negotiations, a buyers agent can be a valuable asset.
They can provide expertise, guidance, and support throughout the process, helping you find and purchase the right property at the best possible price. This can save you time, money, and stress, and help you make a more informed and confident decision.
However, if you are an experienced buyer and feel confident in your ability to navigate the property market on your own, you may not need the services of a buyers agent. In the end, the decision to hire a buyers agent should be based on your specific needs and priorities.
Tips on choosing the right buyers agent:
Just like finding a home, finding a buyers agent can also be an overwhelming process, here are a few tips to help you find the right agent for your needs.
Hot tip #1: Look for an agent with experience and expertise in the local property market: A buyers agent should have in-depth knowledge of the local property market, including current prices, trends, and potential pitfalls to watch out for. Look for an agent who has a proven track record of success in helping clients to find and purchase properties in the area where you are looking to buy.
Hot tip #2: Ask for references:Before choosing a buyers agent, ask for references from previous clients and check the agent's reputation with industry organizations such as the Real Estate Institute of Australia (REIA). This can give you an idea of the level of service and expertise that the agent can provide.
Hot tip #3 Consider the agent's fees and services: The cost of a buyers agent in Australia can vary depending on the location of the property, the complexity of the transaction, and the level of service provided. Make sure to ask about the fees and services offered by the agent, and compare them with other agents to find the best value for money. Communicate openly and honestly with the agent: Buying a property is a big decision, and it's important to choose a buyers agent who you feel comfortable working with.
Hot tip #4: Communicate openly and honestly: with the agent, and make sure that they understand your needs and priorities as a buyer. This can help to ensure that you have a positive and successful experience working with a buyers agent.
You’ve got a buyers agent, now you need the home loan.
Just like having a good buyers agent with the right insights an knowledge of the industry, can help you find the perfect home, having a good source of information and platform for the right home loan is just an important.
Joust can help you find the right home loan for your specific requirements. By using our Joust Live Auction platform, lenders will send through their most competitive offers based on your requirements. You then have the control to select which offer you would like to proceed with.
It’s completed free and there are no obligations to proceed with any offers, you can get started today in under 3 minutes.
*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Joust recommends that you consider whether it is appropriate for your circumstances. Joust recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.
