There are a lot of benefits around using a buyer’s agent when purchasing a property (you can read our blog about it here), but can they save you money as well as time?
Just like the old adage says ‘it’s all about who you know’, and part of the benefit of working with a buyer’s agent are their relationships in the industry.
Working for a fixed fee or commission, a buyers agent acts as the middleman between the real estate agent and the buyer, ensuring their client gets the best deal possible. More popular in the United States, they are quickly gaining popularity here in Australia as buyers are searching for someone to help them navigate the waters of purchasing property.
They are often privy to inside knowledge in regard to reserve prices of properties going to auction, or the history of certain suburbs and properties, as well as whether a seller is looking for a quick sale.
While a buyer’s agent may be able to save you money or keep you under budget by negotiating a great price on your dream home, there is no guarantee, and purchase price is just one way they can help you save.
One of the most obvious reasons to hire a buyers agent is to save time as they know the market, the agents, the properties available, and how to spot a good deal.
These are some tips for finding the right buyer’s agent to help you find your next property.
How to find the right buyer’s agent
- Make sure they are a part of a licensed buyer’s agency. Ask to see proof of their license, or check online via your state or territory’s consumer affairs office.
- Ask the agent about their network of contacts in the area, and their knowledge of the suburb you are looking to purchase in.
- Enquire the percentage of sales they have negotiated in which the properties were off market. This is a great indication of whether or not they have strong contacts.
- Check their fee structure and determine the cost based on your budget. Do they work on a fixed or a percentage of the property purchase?
- How much experience, and what qualifications do they have?
- Once you have ticked off all the above boxes, be sure you feel comfortable with them and that you can trust them. A buyer’s agent is out there representing you, so this is very important.
Remember, at the end of the day you are making the decision on which home to buy and at what price. While a buyer’s agent is there to support and act on your behalf, you have to be happy and comfortable with the negotiations and deal offered at the end of the day.