Why use a Buyers Agent?

We lead very busy lives, so when you’re looking to purchase property, it can often take a significant amount of your valuable time to find one that fits all the criteria. Not to mention, there’s currently the added challenge of severely limited properties being listed for sale.

If you’ve used a mortgage broker before, you know that we’re here to make the finance process easy. So, if house hunting is proving to be a little difficult, perhaps you could benefit from outsourcing to a buyers agent to assist with the search for your dream property. If that approach interests you, here are a few things to remember about using buyers agents that I’ve learned after many years of working in home finance.?

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Buyers agents, also referred to as ‘buyer’s advocates’, are licensed professionals who specialise in finding, evaluating and negotiating the property purchases on behalf of a buyer.

Different to real estate agents, who generally represent just the seller of a property, buyers agents are enlisted to look after the buyer and their requirements.

What services do buyers agents offer?

The two levels of service offered by buyers agents or buyers advocates are typically:

1. A holistic or full service, which includes finding properties that meet their client’s criteria and negotiating on the purchase of the property – either at private sale or auction. They could also be tasked with looking for just one specific property, or for an entire portfolio of properties, depending on their client’s needs.

2. Or buyer’s agents may be engaged purely to bid at the auction of a property that their client has found for themselves.

How much do buyers agents charge?

Unlike our mortgage broking service, there are fees for using a buyers agent, and these fees vary from agent to agent.

Some charge an engagement fee before they begin the search for a home. For the full holistic service, clients can expect to pay either a flat fee, or a percentage of the purchase price of the sourced property.

Lower fees are generally charged to use a buyers agent when they are solely bidding at auction, since there’s much less time involved.

For investors, the cost associated with using buyers agents is typically tax-deductible if they’re used to help purchase an investment property.

Why would you use a buyers agent?

While using one of these agents may not be for everyone, here are six reasons how they can help:

1. Bidding and negotiating

One of the most popular reasons for people to use buyers advocates is to assist during property auctions and negotiations.

Bidding at auction can be intimidating, competitive and emotionally daunting, so it’s a relief to use someone with a lot of experience to represent your needs in the heat of the moment.

Buyers agents know the process back to front – as well as all of the unspoken tricks. They bring confidence, emotional detachment and tactics necessary for a successful bid at auction. Many experienced buyers agents also claim they can achieve a purchase price below their client’s budget, all while saving time and reducing stress.

2. Experience in the market

Buyer’s advocates should be seasoned professionals. They’re familiar with what to look for and what to ask. Good agents should add a constructive, objective view of the buying process, reducing the chance of emotion getting in the way for a buyer.

Buyers agents also know when things are too good to be true, when to hold and when to jump on an opportunity. Like putting trust in a great mortgage broker for your home loan, trusting a good buyers agent can mean that you have an expert on your side in a market that can sometimes feel like a battleground.

3. Early and enhanced access

Savvy buyers agents could even have access to a range of properties that might not yet be on the market.

Having strong relationships with local real estate agents, solicitors, building inspectors, tradespeople, property managers and others is a sign that you’re onto an excellent buyers agent. Engage an agent who can offer you more than just know-how, but also their extended network.

If you’re purchasing an investment property with the help of a buyers agent, then they may also include organising the property management for you, which can make the transition from purchase to rental even easier.

4. Valuable local insights

Like the way a good real estate agent helps you sell property for the highest price because they know the local market, a buyer’s advocate should be very familiar with the markets they operate in and be able to accurately advise you.

If a property is overpriced or if there are developments in the next suburb that will impact you down the track, then they should be able to tell you the real story.

Also being aware of the history of an area means an educated forecast for the future. While it’s tough to predict the future, it’s sensible to listen to someone who has local experience and an informed opinion.

5. Saving you time and effort

Just like a good mortgage broker can save you time and effort to find the right home loan, trusting a professional to locate the right property for you can save you the hassle of research and shortlisting. With a good buyers agent, your weekends can be dedicated to attending inspections on properties that meet all your criteria.

There may be plenty of tools and data available now to help you make informed choices when buying property, but it still takes time. By outsourcing that work to someone who understands your specific needs, it can often be worth the cost of the service.

Also, if you’re purchasing property interstate, buyers advocates can give you a great advantage. Having a agent to act on your behalf somewhere else is almost like being in two places at once. Only when you’re really needed, you can make the effort to travel.

6. Investing know-how

There are buyers advocates who are specialists in property investment. These agents can help you source the right type of property in locations with better chances of capital growth, or find the investments that will fit into your strategy.

This investment expertise can reduce your chances of making ill-informed investment decisions when it comes to growing your future wealth.

How do you find a good buyers agent?

You can ask friends, family or others you trust if they know of a buyers agent they can recommend. Word of mouth is an excellent way to track down an agent with a good reputation. You can also use the online community and Google the top-ranking agents with the best reviews.

Just make sure the buyers agent you choose is familiar with, and ideally an expert in the areas you’re looking to buy in.

If you have more questions, I’m happy to chat.

When using any professional to help you purchase property, you need to find someone who you can build trust with. You’ll also want to make sure that they will be acting in your best interests and they don’t have a vested or commercial interest in properties they are recommending to you.

However, if you find the right buyers agent then it can make all the difference and have you relaxing with the property search done right and much sooner than you may have thought.

Contact me to talk about your property goals and get an objective opinion about using these types of services.?Call 0431 708 806 today or send me a LinkedIn Message to book a free no-obligation meeting or a quick chat. For more details on Mortgage Choice in Kogarah, you can visit our website.