What is a Buyer’s Agent?
Searching for a property? It is a very competitive market out there! Get ready for endless searching to find properties which seem to be right, many qualified buyers competing for the same property and having to negotiate with real Estate Agent’s behind closed doors (in the position where it is incredibly hard for you to gauge exactly what is happening with the property and whether you are paying the right amount.
Purchasing a home can be a very stressful and complex process. Having a professional by your side who works for you – rather than the Real Estate Agent alone who works solely for the Vendor – is huge advantage.
You may have heard of the term Buyer’s Agent before. For you as a buyer, what is a Buyers’s Agent and more importantly – how can they help you in the process of securing your dream home or investment property?
Buyer’s Agent’s essentially work as your advocate. As our Director Paul Murphy states, “As a Buyer’s Agent, our role is to help you as a buyer to secure the right property which will enable you to achieve your goal(s).” A Buyer's Agent's role is to act on your behalf and help you through the process of finding and securing the property which is most suited to your situation and goals. For a complete break down of what a Buyer’s Agent does you can find it here.
For now, let’s focus on how a Buyer’s Agent can help you and how you can find one.
The advantages of using a buyer’s Agent when buying real estate include:
∙ Find the right property. A Buyer’s Agent is typically well practised in searching for properties and knows exactly what to be looking for. The Buyer’s Agent can essentially do all of the ground work for you in searching through many potential properties which might fit your criteria, and come back to you with a qualified selection including the pros and cons of each. This saves you a lot of wasted time and effort and ensures you can focus on the right part – choosing which home you like the most! Buyer’s Agents who have a lot of experience also typically have a large network of connections they can contact as well which increases the homes and scope of purchasing available to you. This includes finding off market properties. A Buyer’s Agent who is well connected can also recommend you to a reputable Building and Pest Inspector which will ensure that you are aware of as much as possible in regards to the property you are planning to purchase.
∙ Negotiate on your behalf: The Buyer’s Agent will put forward your offer to the Real Estate Agent for you if the purchase is through Private sale or off market. They will negotiate with the Real Estate Agent and the benefit is that an experienced Buyer’s Agent will be well aware of any common tactics which may be used so they won’t be tricked into making the wrong move!
∙ Attend Auctions on your behalf. The Buyer’s Agent can attend auctions on your behalf. A Buyer’s Agent such as our director Paul Murphy, who has conducted over 300 auctions, is a great advantage to have by your side! A Buyer’s Agent who has conducted many auctions will be an advantage as they are experienced and so will know what the right move to take is as the auction unfolds. Auctions can go any way and there are a number of tactics that can be used, so having an experienced professional who is impartial acting on your behalf will put your mind at ease because no matter what the outcome is – the outcome will be best suited for you and your situation.
∙ Ensure you have the right foundations in place and connect you with appropriate professionals when required. An honest and reputable Buyer’s Agent will ensure that you have your finances sorted, goals and strategy planned and protection in place in the unfortunate event something should happen to you to ensure you are as protected as possible in all areas before securing your property. They can also connect you with reputable professionals such as Accountants, Lawyers, Mortgage Brokers and Insurance Brokers where necessary.
How to find a Buyer’s Agent:
When searching for a Buyer’s Agent, don’t just blindly take the recommendations of the first one you meet up with or someone that a family friend thinks is good. It is recommended that you interview a few Buyer’s Agents and ask a range of questions so that you can ascertain who is the most experienced and suitable to help you achieve your goals. Some questions you can ask a Buyer’s Agent during your initial conversation include:
∙ What experience do you have?
∙ Were you a real estate agent before becoming a buyer’s Agent? If they answer yes then you can ask:
– Have you ever conducted an Auction campaign or run an Auction?
– Have you conducted a private sale campaign?
– How long were you a Real Estate Agent for? (Note a minimum of 5 years is ideal and they should have a strong track record of selling homes)
– Do you have a strong track record of selling homes? If so please show me!
∙ Do you physically inspect the properties that I like?
∙ Are you a member of any professional associations? Note REIV (Real Estate Institute of Victoria and PIPA – Property Investment Professionals of Australia are two of the most common)
∙ Are you fully licensed?
∙ Are you licensed exclusively as a Buyer’s Agent or are you permitted to sell property as well? (Note – this can result in a conflict of interest)
∙ What specific strategy would you suggest for me given you know my situation?
∙ Who pays you? You may also ask if they accept any kickbacks.
∙ How long have you been in business?
∙ Do you have case studies and testimonials I can look at?
∙ Do you have an upfront or percentage based fee structure?
∙ Will you be personally handling the process of purchasing my property or will it be passed onto someone else within your company? Be sure to check experience as you want to make sure the most experienced is handling your transaction.
∙ What is your due diligence process?
If you have any further questions you would like answered about what a Buyer’s Agent does please feel free to email us at paul@murphyjacobs.com.au.
You are also welcome to book a 45 minute obligation free initial discovery consultation where you can ask us the above questions and find out how we can be your advocate and help you secure the right property!