Reasons to Use a Buyer's Agent

Technology has without a doubt made our lives easier and information available at the touch of a button, however, current trends are showing that technology can also help to over complicate matters.

Property purchasing is a prime example of this:

Not so long ago, it was common for a real estate agent to take a prospective buyer to a few inspections and the negotiations were straight forward, the right buyer would come and the sale was negotiated.

Now there is an entourage to deal with in many agencies. From marketing and administrative staff who have assisted the agent to create an advantage in negotiations to get the deal closed.

THE NEED FOR A BUYERS AGENT

With Australia moving towards the US type model in real estate the table is somewhat turning.

The status quo for many years in the US was that both parties received representation to ensure the deal was mutually agreed with no extras or hidden costs and both parties were serviced to their requirements.

BREAKTHROUGH

In Canberra, buyer's agents have become a major part of the real estate infrastructure. Since the start of this century here in Australia, they are growing year-on-year.

The buyer's agent works to obtain the best possible price for the vendor whereby the agent then receives his/her commission upon the finalisation of the contract. He/she has been supported throughout the process by smart marketing and advertising campaigns, and the industry looks at them as a help, not a hindrance as they help to provide a level playing field for both parties.

Both property investors and owner-occupiers in inner-city areas are proving to be the fastest-growing market for hiring buyer’s agents. With the rise in prices in these areas in cities throughout Australia where many now come with 7-figure price tags, it’s hardly surprising!

After the events of 2020, it’s becoming less and less likely that people will gamble with their capital in the equity markets unless they have a top broker, without professional advice you just won’t do it, even if we are only talking AU$20-30,000.

The same applies to real estate investors, why would you just hand over half-a-million dollars without proper consultation and the necessary groundwork being done. This is where a buyer’s agent comes into their own, very much like a seasoned stockbroker, but many people still do not understand the benefits of using one.

CATCHING ON FAST

In the ever-changing and dynamic Australian property market, a buyer’s agent adds a new dynamic for first-time home buyers.

It is purported that the rise in buyer’s agents in Australia toward the back end of the last century led to a huge surge in property investment in the country.

Back then the agent had a stereotype of representing the new young executive generation who were riding the .com boom at the end of the ’90s and property investment became the new buzzword around the country as young executives were looking to boast property portfolios, as a result buyer’s agents had the tag of being an accessory for the rich (which wasn’t the best tag to have).

Now the landscape has changed, in the last two decades the world has become a truly global marketplace with a diverse clientele, many of them not in the areas that they are looking to buy, so having a local representative that knows their area, marketplace and have connections within is seen as a huge advantage in today's connected world.

Buyers agents are now deemed a valuable asset to be able to do safe purchases and transactions without needing a buyer’s representation to conclude the deal, however, this is not restricted just to the higher end of the market where properties are going into a portfolio, but have become a crucial partner for first home buyers Canberra to make sure they make the right choice.

This trend is gathering pace and the way a buyer’s agent works is very reassuring as they only take commission upon the sale being made, so it is within their interest to ensure they leave no stone unturned especially for first home buyers.

Q. Where do I start?

A. Look to search your local listings, in the Canberra area for example, you can search for buyer’s agent ACT, or look at Canberra auction property bidding to give you a much more diverse range of results to ponder.

ADVANTAGES FOR INVESTORS WHEN USING A BUYER’S AGENT:

Market Research – Already Done

Save valuable time on looking at market trends, historical prices and upcoming changes from the local government, especially when it’s not your forte.

Price Assessment

They will implement a strategy to view the best property in-line with your needs and budget. So buying a house in Canberra will not be a stressful experience.

Negotiating

Many people feel out of their comfort zone when negotiating money fact to face, a buyer’s agent will make sure when buying property in Canberra you do not pay more than you should.

Presenting the Facts

Having all the relevant information in front of you to make a decision is worth its weight in gold, you are sure to be fully informed and secure there are no hidden extra’s or agendas.

Local Knowledge

Local market knowledge is vital and is something money cannot buy; this is why it’s worth paying the commission.

Off-Market Knowledge

Buyers agents have a complex network that they are entwined with, they can arrange for you to view properties that haven’t been listed yet, meaning when there is no competition you are more likely to get the price you are looking for.

No Stress

They will ensure you don’t fall into any traps or make common mistakes so you know that when you sign on the line, it’s what you wanted at the right price.

SO WHAT IS THE CATCH?

A common perception is that this kind of service will be expensive and this puts many buyers off looking up a buyer’s agent.

However, the vast majority of buyer’s agents in Australia agree either a fixed percentage of the sale price or (unlike a lawyer) they charge a flat fee upon a successful transaction, thus meaning they are looking out for your best interests otherwise they also lose out financially.

The commission ranges are between 2 and 2.5 per cent of the purchase price or a set fee.

For anyone who thinks this is too high, think about the hours and hours outside of work it would take for you to find property for sale in Canberra, then prospect houses, the searches, phone calls, and subsequent disappointing viewings.

Not to mention dealing with pushy agents trying to get the highest price or turning up without an auction bidding agent at auctions only to miss out and leave frustrated. Believe me when I say Canberra auction property bidding is not for the feint hearted! You need to know what you are doing.

Taking that into context, it doesn’t seem so bad to have one consultation and then just visit properties that tick your criteria does it?

FIND A GOOD AGENT

Understand, buyer’s agents are not all the same.

Follow these tips to find the right agent to work with:

Experience

Ask about their property investment portfolio, this will give you an idea of their local experience as this along with knowledge are their two main tools.

Best Interests

Buyers agents represent your interests at all times so there is clarity when you deal with them, initially you will have a question and answer session after that everything should be tailored to your likes and dislikes and most importantly your budget.

Conclusion

If you find yourself in the market to buy a property and are considering doing it alone, ask yourself ‘How much experience do I have in this marketplace?’ If the answer is ‘Not much’ then start to search for buyer’s agents in your area and start to look at testimonials and look for references and ratings online. Search for an ACT buyer’s agent and save yourself a lot of time and hassle.

Hiring an agent can be worth its weight in gold, and more importantly, the question really should be ‘Can we afford NOT to use a buyer’s agent?’

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