Commercial and residential real estate buyers are turning to buyers’ agents to help level the playing field. How could they help you?
It’s not surprising that many purchasers feel the property buying landscape is stacked in favour of property sellers. If sellers have agents, why can’t buyers? Enter the buyer’s agent. More and more commercial and residential real estate buyers are turning to buyers’ agents to help level the playing field.
How can they help if you’re buying property?
Buyer’s agents (or ‘buyer’s advocates’) are licensed professionals that specialise in searching, evaluating and negotiating the purchase of residential and commercial real estate on your behalf. A buyer’s agent is an especially attractive option for anyone who is short on time, confused about the market, or not sure how to negotiate with selling agents and developers.
Regardless of whether you’re purchasing residential or commercial property, a buyer’s agent can assist you throughout the entire process of searching to negotiating the purchase of a chosen property, and right through to settlement.
Another option for buyers is to seek out a buyer’s agent for the sole purpose of bidding for them at auction. This is a great choice for buyers who are confident in their ability to find the right property, but find the auction process intimidating or emotionally daunting.
Why use a buyer’s agent?
Access to ‘silent’ listings
A well-connected buyer’s agent will use their industry contacts to present you with a wide range of options, including access to ‘silent’ off market properties. Off market sales are property transactions that take place behind closed doors, without public advertising.
Speed-up the process
With the countless hours that go into trawling properties, making shortlists, and fronting up to inspections, outsourcing the effort to a professional can make perfect sense. A buyer’s agent will identify locations and property types that best fit your financial capacity and search criteria. You’ll get your time back to focus only on the properties that the agent has hand-picked to tick all your boxes.
Buyer’s agents who specialise in investment properties can help you source the right type of property in locations with good prospects for capital growth. They understand market indicators and will use this knowledge to protect your from making an ill-informed investment decision that could cost you thousands of dollars.
Local market knowledge
It can be overwhelming purchasing property in an area you’re not familiar with. Having a buyer’s agent on the ground can give you the advantage of local market knowledge and help guide you towards buying in the right areas, at the right price. Spotting a top performing property and steering buyers away from potential financial disaster takes considerable research skill and due diligence.
Bidding and negotiating
One of the most popular reasons people use a buyer’s agent is to support them during the auction and negotiation process. There’s no room for emotion when negotiating a property deal so it helps to have someone objective to represent your needs when it’s crunch-time. Buyer’s agents understand the nuances of the process and bring the confidence, emotional detachment and strategies necessary for a successful purchase.
How much does it cost?
If you choose to work with a buyer’s agent, you can expect to pay either a flat engagement fee, or a percentage of the property purchase price (usually between 1-3%). The cost will depend on a number of factors including your property price point, the area you’re looking to buy in, and the complexity of your search criteria.
Using a buyer’s agent only to represent you at auction would likely incur a lower fee as there’s much less time involved.
A final word
There’s never a guarantee a buyer’s agent will save you money. However, what they will save you is time and stress, and with their superior negotiation skills and extensive knowledge of the property market data, they’ll give you the best chance of avoiding overpaying or buying the wrong property.
The Loan Tailor uses unique industry knowledge and expertise to offer you tailored buying and lending advice. Get in touch or call Andrew on 0410 731 292 for a no-obligation chat on how to finance your next property purchase, or for a referral to a trusted buyer’s agent.
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.