WHAT IS A BUYERS AGENT
Buyer's agents are licensed professionals that specialise in searching, evaluating and negotiating the purchase of property on behalf of the buyer. They do not sell real estate. The key difference between a buyers' agent and a traditional selling agent is who they represent. A buyers' agent works exclusively for the buyer, whereas the selling agent works for the vendor (seller). By law an agent cannot act for (and accept a commission) from both parties in the transaction.
Many think that using the services of a buyers' agent is too expensive. This is not the case. Buyers' agents can save you money, time and stress, whatever your budget. In most cases they will save you the fee and provide a whole lot more benefits. In the US, over 50% of the population uses a buyers' agent to assist in the purchasing process.
For investors, the buyers' agents fees are tax deductible. Buyer's agents generally charge an engagement fee before they begin the search. The fees are either a flat fee or a percentage of the property purchase price.
Here are 7 key reasons why you should use a buyers' agent:
- Gain access to a wider choice of properties - (many not even advertised) via the contacts/ network of the buyers' agent
- Leverage your time – instead of searching the newspapers and internet every weekend, get someone else to do the hard work short listing suitable properties.
- Don't become emotionally involved - at an Auction or during contract negotiating process.
- Eliminate the stress and frustration - don't be shown inappropriate and unsuitable properties by selling agents that don't listen to the buyers' needs.
- Their independent - imagine an agent working on your side not trying to get a sale for their vendor at any cost.
- Source the right type of property - in locations with good prospects for capital growth
- Help investors build their property portfolio faster - purchasing the right property at the right price with the right yield to ensure they are in a position to purchase their next property sooner.
But beware… not all buyers' agents are the same. Choosing the wrong buyer's agent for your investment property could cost you tens of thousands of dollars!
Here some questions you could ask your buyer's agent before engaging them:
Are you a fully licensed real estate agent?
Be wary of hiring someone who doesn't hold a real estate license and hasn't had years of experience in the property industry.
Do you have current professional indemnity insurance?
If something goes wrong with your property purchase you will have absolutely no recourse if this is not the case.
Do you specialise in home buying or property investment?
Buying investment properties requires certain expertise and strategies to maximize the capital growth of your property. Most buyers' agents don't specialise or even understand property investment. If you are an investor ensure your buyer's agent has experience in purchasing property investments and a proven track record. If you are buying a home make sure your buyers agent fully understands your needs and geographic territory.
Can you provide a reputable team of professionals to help me make a more informed investment decision?
Do they have a proven team of solicitors, accountants, property managers, builders and pest inspectors to ensure you buy the right properties and maximize your investment returns?
Are you truly independent?
Is the only way they are remunerated from the payment of your fee? They should not receive any kick back or payment from the vendors agent or developer.
Contact Us today to find out how using a Buyer's Agent to buy your new home or an investment property.