What is a Buyer’s Agent?

By December 11, 2018 No Comments

Real Estate Agents vs Buyers’ Agents

In simple terms, a Real Estate Agent represents the seller’s bests interests (i.e. to maximise the selling price of a property) whereas a Buyers’ Agent represents the buyer’s best interests (i.e. to minimise the purchase price of a property).

But- Buyers’ agents do MUCH more than just negotiate the lowest purchase price.

They can save you a lot of stress, hassle, and time as they guide you through the whole property search and property acquisition process. They can even attend inspections on your behalf and shortlist properties that meet your criteria.

They are also experienced in dealing with property transactions and will prevent you from falling for typical sales tactics and paying too much for a property.

What do Buyers’ Agents do?

Buyers’ agents are licensed professionals who can assist a buyer in purchasing a home or an investment property. They will guide and advise you from the initial planning stage, through search, due diligence, background checks (to ensure the property isn’t riddled with termites!), negotiation, auction attendance, exchange of contracts, through to settlement.

Buyers’ agents also act as the middle man, liaising between your solicitor’s, accountants, financial advisors, and mortgage broker so you don’t have to. They will also be able to interpret these specialists’ “lingo” and explain everything to you in simple terms.

Why use a Buyers’ Agent?

  • Buyers’ agents have vast industry knowledge as well as insider contacts which means they can get first look at a property before it is advertised and even access to properties off-market.
  • They will save you a lot of time. They will complete all the groundwork and only present you a shortlist of properties that meet your criteria. You will get your weekends back, and they can assist in arranging private inspections at times that are suitable for you.
  • They perform due diligence & research and can assist you to arrange a building and pest inspection to ensure all the necessary checks are completed.
  • A good buyer’s agent is also an experienced investor and is on top of any market changes. They will prevent you from falling for novice investors traps.
  • They can negotiate the lowest price on a property due to their experienced negotiation and auction bidding skills. They are independent and unemotional so will prevent you from falling for typical real estate sales tactics.
  • They will be your support and explain the whole process along the way.
  • They act as the main “go to” person between your solicitor, accountant, mortgage broker and financial advisor.

How can a Buyers’ Agent help purchase a home?

Your Buyers’ agent will guide you through the planning to ensure you are clear on what you can afford for your budget. They will also provide suggestions on what you need to be flexible on, as well as provide advice on your location.

They will save you time by shortlisting properties that fulfil your criteria so you don’t have to spend each weekend trawling through open homes. They can also assist arranging private inspections in times that suit you and your family.

If you’re nervous about purchasing your first property, a Buyers’ agent will be by your side guiding you to ensure you don’t pay too much for a property, or get caught up in emotions at the auction. They are independent and unemotional about the purchase, so will provide their honest feedback as well as prevent you from paying too much for a property.

How can a Buyers’ Agent help purchase an investment property?

Your Buyers’ agent can assist you in purchasing an investment property from initially setting a strategy to achieve your goal. They will be able to guide you on the best suburbs to purchase based on your budget and strategy, and ensure you avoid the typical mistakes novice investors might make.

Often investment properties are purchased in locations not close to where you live, and a Buyers’ agent will be able to guide you on the best locations to achieve your strategy due to their vast knowledge of the markets, because they are working in the markets every day.

Your Buyers’ agent will be able to explain all the requirements for an “investment grade” property and assist you to understand yields, returns, capital growth, and cash flow.

Are Buyers’ Agents qualified?

Yes, a Buyers’ agent is required to be licensed in the state they are operating in (different licenses per state due to legislation differences).

A Buyers’ agent should also be a member of a professional body such as the Real Estate Institute of NSW (or QLD, VIC, WA etc), Property Investment Professionals of Australia (PIPA), or Real Estate Buyers Agents Association (REBAA).

You can check a Buyers’ Agents license registration on the Fair Trading website.

If you are looking for a Buyer’s Agent to assist you with purchasing a home or investment property in the Sydney, Brisbane and Newcastle regions, please get in touch with Aus Property Professionals here or give us a call on 1800 146 837!