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Buyer’s Agents, otherwise known as Buyer’s Advocates or Property Strategists help property buyers (home buyers and investors) enter the real estate market. Typically a Buyer’s Agent will work alongside, and in the exclusive interests of a buyer, helping them through each stage of their property purchase. Buyer’s Agents are known for empowering buyers, by helping them make good decisions so they purchase the right property at the right price. Where a real estate agent or selling agent represents the interests of a property seller; a Buyer’s Agent represents the buyer.
Buyer’s Agents represent the exclusive interests of Property Buyers. For many, the concept of engaging a Buyer’s Agent to help with a property purchase is completely unfamiliar. I get it. It’s such a new space, especially within the Australian property industry, and in particular, Brisbane. Whilst most Buyer’s Agents share certain similarities in the way they operate, others are unique in their approach.
Here’s why we’re different.
The decision to buy a property can be exciting, but at the same time, you’re feeling a little nervous about what lies ahead. Buyers are often beaming with excitement the moment they begin their property journey, but it’s often this enthusiasm turns to frustration the moment things start getting hard. You miss out on what you thought was your dream home, or perhaps you were outbid on a property you thought was The One. Buyers often struggle with the process, getting stuck on the merry-go-round of Saturday morning open homes, rejected offers and real estate agents they’d rather not deal with. When you partner with a professional, all of this pain and frustration goes away.
Unlike traditional real estate agents whose job is to represent the seller, a Buyer’s Agent works exclusively in the best interests of the buyer. Experienced Buyer’s Agents stop their clients from making costly mistakes when buying real estate. Buyer’s Agents take the leg work out of searching for property and secure the best deals for their clients through their networks, negotiation skills and local market knowledge.
A skilled Buyer’s Agent can potentially save you tens to hundreds of thousands as they can often negotiate a lower price and better outcome because they are emotionally removed from the purchase and can help keep your decision making rational. They stop you from over-paying for a property or buying a “dud”. Essentially, Buyer’s Agents often put you in a stronger position than if you were to go it alone. Whereas many buyers don’t do thorough research before they buy, a Buyer’s Agent will perform due diligence and other checks on a potential home to ensure you know EXACTLY what it is you are buying before you commit to a Contract.
Buyer’s Agents can also help their clients navigate a fast moving market and obtain access to secret listings, off-market properties and ahead of market listings – properties that other buyers may simply never see.
It’s a skillset you’re simply not expected to have, but one that is invaluable if you want to make a successful property purchase. Not only this – Buyer’s Agents remove a huge amount of stress from the process because they take on the emotional and physical burdens that come with house-hunting. I’m referring to the physical on-the-ground leg work such as short-listing the right properties, attending open homes, negotiating with real estate agents, managing contract paperwork and all the in-between things like organising building and pest reports, performing due diligence, researching prices, talking with more agents… and the list goes on.
Sadly, I see all too often where too much trust is placed on real estate sales agents who are not under any obligation to work in the best interests of the Buyer. At worst, inexperienced buyers can lose thousands (and not even realise) because they didn’t know how to negotiate their contract or they unknowingly made a mistake during the purchase process. Interstate and overseas buyers who don’t know the local laws and market conditions can potentially over-pay tens (if not hundreds) of thousands of dollars because they didn’t understand the buying landscape. On the other side of the fence, I’ve had buyers appoint me to help them get in – that is, secure the right property – get them a seat at the table in a fast moving market. During a Property Boom, opportunities come and go very quickly and you need to be in a position to act fast and make quick (calculated) decisions. This is where a Buyer’s Agent can be of great value to a Buyer.
These buyers have demanding careers and busy lifestyles which means they don’t have the time to fully commit to a property search and the lengthy process that entails. They also lack the local market knowledge which can halt their decision making and delay the process – pushing the dream of the new home or investment further and further away. Interestingly, more first home buyers are partnering with Buyer’s Agents who can be their sounding board and trusted advisor throughout the process, ensuring they commit to the right property and pay a fair price. What these people have in common, is they understand that partnering with an industry professional will ultimately result in a better outcome than if they were to go it alone. The added bonus is they can tap into the Buyer’s Agent’s network that often leads to off-market properties that other buyers don’t see.
1. Does this person or agency receive kick-backs or incentives from third parties such as developers, builders or real estate agents in connection with their services?
If a Buyer’s Agent receives a monetary benefit or kickback because they have referred a specific property to you, it may indicate you are being given biased advice which may not be beneficial to you.
2. How connected is this person or agency within the local real estate community, and are they liked amongst their industry peers?
If a Buyer’s Agent doesn’t have a close-knit established local contact base of real estate agents and industry associates, you need to beware. If they’re not well-connected, you will miss out on off-market opportunities and their negotiation powers will be limited.
3. Is this Buyer’s Agent a true independent?
Some Buyer’s Agents have been known to “double dip” when it comes to receiving commissions from both you and the selling agent. This is highly unethical. A reputable Buyer’s Agent will work for you and only you. They won’t be partnered exclusively with other selling agents in order to “push their properties” onto you for kick-backs and incentives. If they are receiving a financial incentive, they will tell you about it (provide full disclosure) beforehand.
4. Will you be working with One Agent, exclusively throughout the process, or will you be passed to others in the agency?
Some buyers prefer to work with just one, lead agent. If this is You, be sure to ask who you will be allocated to within the team. You don’t want to be passed off to a less-experienced team member if you thought you were signing up with the head honcho. No one likes to be downgraded, and it will likely affect your overall result.
5. How long has the agency been established and do they specialise in areas where you want to buy?
Always partner with a Buyer’s Agent who specialises in the areas where you want to buy. Sadly, the barrier to entry for real estate agents and Buyer’s Agents is low. This means that almost anyone can obtain a real estate license that allows them to represent clients in property transactions. You need to be mindful that experience coupled with contacts counts for everything in this industry. If you want a great result, don’t partner with an industry newbie and be cautious of appointing an agent that doesn’t specialise in the areas where you want to buy. They won’t have the connections you need to access behind-the-scenes properties or the experience to negotiate strategically.
I suggest performing a google search on your potential Buyer’s Agent, reading their online reviews and checking their social media accounts. Who is this person when they’re off-the-clock and do you feel you can trust them with what is possibly one of the largest financial and emotional decisions of your life?