Save Money Buying Property

Should I Use a Buyer’s Agent – How Much Money Can I Save?

Whether you are buying your dream home, your first investment property, or you have dozens of investment properties under your belt, enlisting the services of a buyers agent in Melbourne can be a great idea.

Buyers agents (also know as buyers advocates) are a popular way to purchase homes in countries like the US, in fact, according to statistics from the National Association of Realtors, 87% of buyers purchased their home through a real estate agent or broker in 2020- an increase from 69% in 2001.

They are also becoming more and more popular for property buyers here in Australia, particularly with the property market getting more competitive in recent years thanks to the effects of Covid-19 and with housing affordability becoming a huge issue in many areas of Australia

With all of that in mind, it’s no wonder that home buyers and property investors are looking into different ways that can help them save money when it comes to their property purchase.

But is a buyers agent necessary when you are considering investing in property?

There are many benefits of using a buyers agent when you are buying a home or investment property and whether you enlist a buyers agent to assist with your property search will depend on a number of factors and your property goals.

How much does a buyers agent cost?

As with many services, what you will pay for a buyers agent will vary. There are a range of services that buyers agents offer including:

Full Service

The buyers agent will research different locations, find properties that meet your criteria, investigate the property to calculate the best price, and negotiate with the property seller on your behalf for the purchase of the chosen property. 

Bidding and Negotiation

You find the property you are interested in investing in and your buyers agent will assist with the research and investigation of the property to ensure the best price, and assist with negotiating the price with the seller or will assist with bidding at auction. 

Auction Only

Working within your chosen budget, the buyers agent will bid for you at the auction of a property that you have found for yourself.

If we are looking at the full service as an example, there will still be variations in what you might pay for the services of a buyers agent. Some buyers agents charge a fixed fee, while others will charge a percentage (anything from 1-3%) of the total property sale price.

Overall, the price will depend on a number of factors including the area that you are  looking to buy in, the prices of the properties you are searching for, and the complexity of the search and your wish list. 

How much money can a buyers agent save me?

If you’d like to really know “are buyers agents worth it?”, then this is important. Some buyers agents will promise that they can secure you a lower purchase price than if you purchased a property on your own. However, like many things in life, this cannot be guaranteed.

It’s important to keep in mind that it’s not just the purchase price you need to think about. Beyond the purchase price, there are a multitude of things to consider when buying a home or investment property. Here are some things to consider if you are weighing up your options:

Time is money

If you have the time and motivation to invest in educating yourself and making an informed decision, then managing the property buying process yourself is certainly achievable. But if you are time-poor, then a buyers agent would be a wise investment as they can do all of the research for you, enabling you to make the best possible choice. 

Knowledge is priceless

Because most buyers agents are former real estate agents or property investors, they will often have access to off-market properties and insights due to their existing contacts. Additionally, because they know the suburbs, neighbourhoods and even apartment blocks that offer the best return on investment, they are able to pass on this knowledge to help you get the best property to suit your needs.  

In addition to your wishlist for your ideal property, buyers agents will generally have their own set of criteria that they use to assess whether a property is a good investment. By taking advantage of this expertise, you can secure a property that meets your brief, while also being a wise property investment. 

Buyers agents know how to negotiate

Negotiation is a skill that not all of us have, however you will find that buyers agents will be among the best! Buyers agents are professional negotiators and because of this, have developed the tactics and emotional detachment necessary for a successful property bid, often enabling substantial savings of the property purchase price.

Stress savers

Buying property can be an incredibly stressful experience, in fact research from Allianz Australia has found that over 50% of those surveyed said they would rather stay in their current home longer rather than dealing with the stress of buying property.

Enlisting the assistance of a buyers agent can help to ease the stress of  the property buying experience, as you know that they are working on your behalf to help you make the best decisions for your purchase. While not necessarily a monetary saving, many would argue that eliminating stress is worth its weight in gold!

Buyers Agent Sold

Why you should use a buyers agent?

As we have mentioned, there is never a guarantee that using a buyers agent will save you money. However, what they will do is save you the cost that comes with overpaying or buying the wrong property, and will work their hardest to get you the best possible deal.

By helping you to invest in the right property for your requirements, the buyers agent’s fee will often repay itself many times over.

At Alfy, our team has over 15 years of experience helping property buyers navigate Melbourne and regional Victoria’s property landscape, and because we are locals, you can benefit from our specialist knowledge in the Victorian property market. So if you want a buyers agent Melbourne property buyers trust, you can trust Alfy.

Get started on your property buying journey with a free 30-minute consultation with our experienced team to can help get started on your property buying journey.