Buying a home for the first time can be overwhelming. There is a boatload of technical jargon in the real estate world and trying to wrap your head around these terms is incredibly stressful.
As exciting as it is, buying a home is more than just paying the owner and getting your key. You’d need to do some research, shop around for the best properties, make phone calls, and compete with others for the same properties on the market.
However, there is a smart way to avoid all this frustration – getting an agent to help you find your dream property cuts through a lot of the hassle making the process more manageable.
What Do Buyer’s Agents Do?
Trying to purchase a property on your own may not be a good idea. What if you had someone to help you? Someone with more experience in the real estate market?
Buyer’s agents are real estate professionals whom you can hire to do the leg work of buying on your behalf. They represent your interests and not that of the seller, and also:
• Research the best properties for you based on your preferences
• Negotiate for the best purchase price on your behalf
• Help you through the paperwork
Differences between a Buyer’s Agent and Seller’s Agent
Buying a property is like an everyday business transaction – there are buyers and sellers. Now, both of these parties – the seller and the buyer – have representatives. The person who represents the buyer is known as a buyer’s agent while the one who represents the seller is called a seller’s agent. The seller’s agent is also known as a listing agent.
While they both want you to buy a house, only buyer’s agents, registered with the Buyers Agents Association of Australia, work for your interests. Buyer’s agents help you to buy properties at the lowest price, while seller’s agents want you to pay the highest possible price for a property.
Why Do You Need a Buyer’s Agent?
The real estate world is a confusing labyrinth. As a buyer, you’ll need a buyer’s agent to help you navigate it. Here’s how,
A buyer’s agent has your best interests at heart – Unlike a seller’s agent, the buyer’s agent wants the best for the buyer. They help you find a property that clicks with your needs and not their own.
They understand the market – You don’t have time to study the real estate market before buying a home. Lucky for you, you won’t need to. Buyer’s agents dedicate their lives to understanding the real estate market so you won’t have to.
They’ll help you find the right property – You know what don’t know where to look. Discuss your needs with the agent, and they’ll look through the plethora of listings to find one that is the best fit for you.
They also negotiate the purchase price on your behalf – It’s easy to lose money when you do it on your own. You probably won’t understand the market pricing and seller’s agents may take advantage of your naivety. You, therefore, need a buyer’s agent to lock horns with the seller’s agent and get you the best possible price.
Using a buyer’s agent to buy a property saves you much money.
How Do Buyer’s Agents Get Paid?
When you use a buyer’s agent, you will need to sign a contract.
This contract is a typical buyer-agent agreement and mostly covers the agent’s responsibilities to the buyer. The deal also ties you to the agent, which means that you cannot enlist the services of any other without the consent of the first agent you engaged.
Opting to use a buyer’s agent to purchase a property means that you’ll have to pay them. Most agents registered with the Real Estate Buyers Agents Association of Australia (REBAA) take a fee of 1 – 3% of the purchase price of a property or a fixed fee of $5,000 – $15,000. Some agents charge a small fee upfront and some as much 50% of the fee upfront; it all depends on which agent you choose to use.
Enlisting the services of a buyer’s agent is a smart move when buying a home. It saves you time, money, hassle, and protects you from overpaying for a property at the persuasion of a seller’s agent.
At Buyer’s Agent Australia, we are here to help you find a professional to guide you through the home buying process. If you have any queries about purchasing a property, our property experts are on hand to help you.
Contact us today to find out how we can help you land your dream property in Australia!