When you are buying a home, it is important to consider all of the costs involved so that you can receive value for the substantial amount of money you are investing. Some of the costs you need to consider aside from the deposit you have already saved include stamp duty, conveyancing, legal fees and buyer’s agent fees.
Should you invest in a Buyers Agent?
A Buyer’s Agent is beneficial when you are trying to secure your next property because they are experienced and work as an advocate on your behalf. They understand what needs to happen to secure the property you are looking for and will ensure that every step of the process is handled with due diligence, and as straightforward as possible. The services provided by our director Paul Murphy, who is a licensed Buyer’s Agent in Melbourne include initially sitting down with clients and working out exactly what their goals are and ensuring they have the right representation and experts to conduct the conveyancing, legal work and building and pest inspection, then finding the right properties which suit what clients are looking for, presenting the properties to the client so they can choose the ones they like, then handling the process of negotiating and securing the property which can be done off market or via representing the client at auction. Due to his extensive network of professionals within the property industry, Paul also has access to off market opportunities which individuals themselves would not be able to access.
Benefits of engaging a Buyer’s Agent
There are many benefits you can receive through engaging an experienced, reputable Buyer’s Agent, including:
· Saving time. An experienced Buyer’s Agent such as Paul who has been buying and selling properties for over 32 years knows exactly what needs to be done and in what order. This ensures that the process is quick and as straightforward as it can be.
– saving time and reducing stress for you as the buyer.
· Improved success rate. Having an experienced Buyer’s Agent represent you who knows how to handle Real Estate Agents and is confident in what the next best move is regardless of any circumstances that may arise is an important advantage because it will ensure that you are best positioned to secure the property you love.
· Eliminate expensive mistakes. Having a Buyer’s Agent who is experienced can allow you to avoid many mistakes including overpaying due to heightened emotions, potentially buying a property which is the wrong grade and won’t provide you with decent capital growth, taking a long time to secure a property which may then mean you pay a lot more for it, heightened stress if the process does not go to plan, not getting the right building and pest inspection done which could cost you thousands (or even hundreds of thousands) if issues arise which could have been picked up, or potentially not getting the right conveyancing or legal advice which could result in the process being more difficult or you having to spend more money unnecessarily than you initially budgeted.
What does a Buyer’s Agent cost?
Buyer’s Agent Fees can vary depending on the model that they use. Buyer’s Agents in Melbourne can either adopt a fixed fee model or a variable fee model (for in-depth information on the difference you can find it right here).
Fixed Fees
Fixed fees are where the Buyer’s Agent provides you with a fixed fee upfront for all of the services they will provide for you. As it is a fixed amount, it will not vary depending upon the price you pay for the property you purchase. You will have the peace of mind of knowing upfront exactly what you are paying for. In Melbourne, the average fixed fee range for an experienced Buyer’s Agent is between $5,000-$20,000 depending on what services you require. Should you engage a Buyer’s Agent to represent you at Auction and bid for you as a standalone service, it could be as little as $750 though. At Murphy Jacobs we adopt a fixed fee model so that our clients always know upfront what they are investing in the right Buyer’s Agent to guide them and secure their investment property for them.
Variable Fees.
An alternative to the fixed fee model is a variable fee model. Under this model, Buyer’s Agent’s charge a fee based on the price you actually pay for the property you are securing. Typically, this fee range is between 1-3%. Let’s look at what that may look like if you are securing properties at different price points.
With a variable fee model, the fee amount can vary significantly depending on what you pay. It is also important to note that even though some Buyer’s Agents adopt a variable model, some still require part of the payment amount upfront.
Which fee model will be right for you?
It really depends on what you think is the right fit for your individual circumstances. At Murphy Jacobs, we find our clients often prefer the fixed fee model because it is transparent and from the beginning they know what they will be paying, as well as how we will support them at each stage of the process. For busy professionals in particular, this means that they can then focus on what they do best and leave the in-depth research, organisation of required professionals and securing of the property they want up to us!
If you would like to arrange an obligation free consultation where we can discuss what you are looking for, and the fees to have us guide you in the right direction, you can arrange it right here. We look forward to helping you make the right move and showing you how our experience can be your peace of mind! For more information on how our buyers advocate in the Brighton and Bayside area can help you, contact us today.