If you are interested in buying a home or purchasing your next investment property, then you may be considering a buyer’s agent. A buyer’s agent, also known as a buyer’s advocate, is a real estate professional whose job is to research, assess, and negotiate the purchase of a home or investment property on behalf of their client.
Read More: What is a Buyer’s Advocate?
We know that the property buying journey can be stressful, in fact research from Allianz Australia has found that over half of those surveyed said they would rather stay in their current home longer rather than dealing with the stress of the property buying journey, and almost 20% would rather go without social media for a month than enter the housing market.
Buyer’s agents can make the property buying experience much less stressful as they are working in your best interests and on your behalf to help you make the best decisions for your purchase.
What services do buyer’s agents offer?
While different buyer’s advocates tailor their services dependent on their specific skill sets, generally buyers agents will offer three types of services:
Your buyer’s agent will find properties that meet your selected criteria, research the property to determine the best price, and negotiate on your behalf for the purchase of the chosen property. This option would suit property buyers who are buying in an area that is unfamiliar to them, those who are very time poor, or simply those who want to take the majority of the stress out of buying a property.
Bidding and Negotiation
If you choose this service, you will find the home yourself but your buyer’s agent will step in and assist with the analytics and background check of the property to ensure the best price, and will also assist with negotiating the price for sale or bidding at auction. This option is great for those who know what they are looking for in a property, but need a little extra support when it comes to price analysis and negotiating the sale.
Your buyer’s agent will bid for you at the auction of a property that you have found for yourself, working within your chosen budget. This option is great for property buyers who already have a clear idea of the type of house they want and the area they want to purchase in, but want to be able to participate in auction bidding without being emotionally involved.
How much does a buyer’s agent cost?
Figuring out how much does a buyer’s advocate cost can be difficult, as this will depend on a range of different factors, including the type of services provided, the experience the agent’s have and even where they are located.
A typical buyer’s agent fee will either be a fixed fee for their services or a percentage of the property’s purchase price. Some buyer’s advocate fees will also include an engagement fee before they begin the search for a property. Of course, if you choose to enlist the buyer’s agent for their Auction Only service, then you will generally pay a much lower fee as there is less time and work involved compared to the full service option.
It is also worth keeping in mind that if your buyer’s agent is working to purchase an investment property, then generally the buyer’s advocate fees can be tax-deductible. Purchasing costs, including buyer’s agents’ fees, can form part of the cost base when buying an investment property, which will reduce the capital gains tax an investor would pay when it comes time to sell. However, we recommend that you speak with your accountant to see what is applicable to your situation.
Is using a buyer’s agent worth it?
Buying a home or investment property is expensive, with property buyers required to pay stamp duty, conveyancing and legal fees, not to mention the huge deposit required.
With all the costs associated with purchasing a home or investment property quickly adding up, it might seem unnecessary to add on even more costs in the form of using a buyer’s agent. However, for many property investors and home buyers, the investment is well worth the additional cost, and using a buyer’s agent may even help save money on your property purchase.
There are several reasons why you should work with a buyer’s agent or advocate on your next property purchase. Your buyer’s agent can provide local knowledge and accurate appraisals about property values and the growth potential for your chosen suburb. Armed with this information, they can then negotiate the best possible deal on the property purchase price, often saving money on what you may have paid without this knowledge.
Additionally, they can use their extensive network to give you access to off-market and pre-market properties that you would not have access to otherwise, giving you greater choice and options. Even if you are planning to just use a buyer’s agent to help you to bid at auction, then they can help you to avoid making emotionally-driven decisions, which may result in you paying more money than you need to for your chosen property.
Overall, the main benefit of enlisting a real estate professional like a buyer’s agent or buyer’s advocate for your next property purchase is that they can help to remove a lot of the stress from the property buying process.
Make sure your buyer’s agent is worth the cost
How do you know if your buyer’s agent will be worth the investment, and not a waste of money? It’s all in the research. Buyer’s agents need to be licensed real estate agents and it’s important they have experience in the area you’re wishing to purchase in.
Also, you will need to ensure that they are independent agents, and do not accept sales commission from vendors or developers.
As with any financial decision, it is important to research your buyer’s agent to make sure that you are getting what you are paying for. It may be worth meeting with several buyer’s agents to make sure you are working with a buyer’s advocate who completely understands your situation and requirements, and one that you feel comfortable with and trust.
Buy your next property with a buyer’ advocate you can trust
At Alfy, we always work hard to help make the property and home buying experience easier for our valued clients. Our team has over 15 years of experience and are passionate about helping people navigate Melbourne and regional Victoria’s property landscape.
Alfy has years of property experience throughout Melbourne, its surrounds, and throughout regional Victoria, and because we are locals, you can benefit from our specialist knowledge in the Victorian property market.
So if you are investing in your dream home or next investment property in Melbourne, or throughout Victoria and want a buyer’s agent Melbourne property buyers trust, choose Alfy.
Get started on your property buying journey with a friendly and free 30-minute consultation so our experienced team can help you to discover your property goals.