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While you're probably familiar with real estate agents who represent a seller in a real estate transaction, you may not be so familiar with real estate agents who represent a buyer. Where a prospective buyer engages a real estate agent to help them find and buy a suitable property, these agents may be known as buyer’s agents.
If a person carries on a business or holds themselves out as a real estate agent, they must be a licensed real estate agent. A buyer’s agent acts on your behalf and in your best interests when purchasing a property. Your buyer’s agent may search, evaluate and/or negotiate the purchase of a property on your behalf.
You may also come across terms such as buyer advocates, property finders or property advisors.
Reasons to engage a buyer's agent:
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You don't have time to look for a property and need another party to find a property for you
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You would like an objective third party to act in your best interests by negotiating a deal on a property you have found
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You have limited knowledge of desirable areas or particular features a property should have
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You're not aware of market value
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You don't live in the area
Before appointing a buyer’s agent it is important to evaluate your needs. It is up to you to decide which aspects of buying a property you are willing to take on and which you would like a buyer’s agent to do for you. The number and type of services you appoint an agent to undertake as your buyer’s agent will determine the fees you pay.
A buyer’s agent may offer you the following services:
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Conduct research in order to prepare a list of properties that fit your criteria and arrange for you to view them
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Advise on the merits of individual properties
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Discuss market values
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Bid for you at auction
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Conduct enquiries and searches with relevant authorities to determine if any issues affect the use and enjoyment of the property
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Engage in negotiation on your behalf
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Assist with the wording of special conditions in offer and acceptance contracts
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Explain the terms and conditions in the seller’s contract and advise if they are in your best interests (a buyer’s agent cannot provide you with legal advice)
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Arrange building and pest inspections and other services
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Monitor the settlement process
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Liaise with selling agents
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Contractors and settlement agents
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Oversee final inspections
If you are an investor, you may also need advice about other matters, such as the desired rent, whether the property will attract tenants, and any capital expenses or repairs that will need to carried out in order to attract tenants at the desired rent. It is important to note that under the Corporations Act 2001 the buyer’s agent cannot provide you with financial advice unless they hold an Australian Financial Services licence.
An advantage of using a buyer’s agent to negotiate on your behalf is that you do not have to deal directly with the seller’s agent if you don’t want to, thereby reducing the likelihood of direct pressure sales tactics that may be used by the selling agent.
Relationship between buyer, seller and agents
CHOOSING A BUYER'S AGENT
A person decides that they would like to buy a property (the buyer). The buyer appoints a buyer’s agent (a licensed real estate agent) to help them find a property and to represent them during the buying process.
FINDING A PROPERTY
The buyer’s agent prepares list of suitable property and organises viewings for the buyer.
CHOOSING A LISTING AGENT
A property owner or seller decides to sell their property (may be referred to as the vendor). They appoint a listing agent (a licensed real estate agent) to represent their interests in selling their property.
SELLING A PROPERTY
The listing agent arranges advertising, property viewings and home opens for the seller.
OFFER & ACCEPTANCE
The buyer’s agent liaises directly with the listing agent or private seller on behalf of the buyer. They can:
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Assist with the wording of special conditions in the Offer and Acceptance
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Arrange building and pest inspections
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Negotiate the sales price for the buyer
The listing agent (on behalf of the seller) or the private seller liaises directly with the buyer’s agent. They can:
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Assist with the wording of special conditions in the Offer and Acceptance
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Arrange building and pest inspections
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Negotiate the sales price for the seller.
SETTLEMENT
The buyer’s agent monitors the settlement process and the transfer of the title deeds into the buyer’s name.
The listing agent monitors the settlement process and the transfer of the title from the seller’s name to the buyer’s name.
NEW OWNER
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What is a Buyer's Agent?To put it in simple terms, a buyer's agent (otherwise known as buyer's advocate) represents the buyer in a property purchase transaction. But when employing Ready Set Buy - Property Buyer's Agents, it's much more than that. For investors, we'll ascertain what your goals are and then devise a strategy to help you achieve them. This involves us getting to know you not only on a professional level but also understanding where you are in life now and where you'd like to be in 5, 10, 15+ years time - both personally and financially. For home buyers, we'll get to know you on a more personal level to understand what exactly it is you're looking to buy. Your family's composition, preferred suburbs and property types, amenities and transport, your lifestyle etc will all play a major role in our property search and acquisition stage.
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What services does a Buyer's Agent offer?The scope of services your buyer's agent offers can vary. With Ready Set Buy - Property Buyer's Agents, we offer a full and comprehensive service from start to finish, and beyond! This includes setting up your initial strategy and brief, searching, inspecting and shortlisting suitable properties, performing research and due diligence, negotiating and auction bidding. We will also help you organise conveyancing, building & pest inspections, strata reports, property management, insurance and more.
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What can a Buyer's Agent do that I can't do on my own?Save you time, money and stress! Yes, it may sound a little cliche and I'm sure you've heard it all before but it's true. As buyer's agents work daily on finding suitable properties for their clients, they can also ensure you don't miss out on any opportunities. Most people only get time on the weekends to search for and inspect properties, but your buyer's agent will also do this throughout the week for you. Buyer's agents are also very familiar with many different property markets, which is an advantage if you're looking to invest in a different market or interstate. In most cases, buying an investment property in your 'backyard' is not necessarily the best place to invest. Australia has so many different property markets, so the chances that your own suburb or area will return the best results is very slim. Your buyer's agent will be able to educate you on the different markets, explain which ones are ideal for investment based on your budget and goals and provide examples of other deals they've secured there and the results they've achieved They'll also have access to off-market and pre-market opportunities which are not available to the general public, through the strong relationships they've built over the years with sales agents.
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Does a Buyer's Agent need to be licensed?Yes. It's important to check that your buyer's agent is licensed to purchase in the state or territory you're looking to buy a property in. It's also advisable to check their work experience and qualifications, as there are many 'pop up' buyer's agents with no industry experience entering the buyer's agency space through a 'fast-track' course. To achieve true results from your buyer's agent, they should have personal and professional experience in buying and selling properties and/or managing investment properties. Ready Set Buy - Property Buyer's Agents was founded by Tome Avelovski who has been working in the real estate industry since 2015. Tome is an experienced property investor himself and a home owner. He and his team have extensive knowledge of various property markets across Australia, having successfully helped over 200 buyers and purchased over $100million worth of property by 2023.
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How much does a Buyer's Agent cost?Buyer's agents can charge either a fixed fee or a percentage of the purchase price (commission). There's usually a small retainer (also known as an 'engagement fee') upfront in order to commence using their services - this is to cover their time in performing extensive research to set up your strategy and search brief. The balance is usually payable upon successful purchase a property. With Ready Set Buy - Property Buyer's Agents, you can rest assured that we'll always be working in your best interest by charging a transparent fee. We believe that having a transparent fee upfront ensures our clients know the only fee they will pay and that we'll always aim to negotiate the lowest possible price, as there's no incentive for us to do otherwise. This should also give you the confidence that we're going to present you with all of the suitable options and not just those that are at the top-end of your budget, just so you pay a higher fee.
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Who pays the Buyer's Agent?The person engaging with the services of the buyer's agent (the property buyer) pays the buyer's agent their fee, as they're representing and working for them in the transaction.
FAQ's
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