5 Questions to Ask a Luxury Property Buyer’s Agent

5 questions to ask a Luxury Property Buyer’s Agent

Buying a luxury property is likely to be one of the biggest investments of your life. Along with the high cost, there are so many things you need to consider when buying a luxury property. What makes this type of property so valuable is a combination of the quality, size, location, and features of it. 

Luxury properties are usually located in well-established suburbs where average house prices are well above average (over two million). These properties are usually situated on blocks as big as 450 square metres and can have over six bedrooms spread over two floors. Features of a luxury house can include things you won’t find in your average house like a tennis court, spa, swimming pool, private cinema, or even a private gym. 

Before purchase, any property should be thoroughly assessed to determine its true value. This assessment is just one of the main reasons why people rely on the services of a Luxury Property Buyer’s Agent. These professionals are effectively the same as a Property Buyer’s Agent only they specialise in dealing with properties that are classified as a luxury property. 

Choose the right Luxury Property Buyer’s Agent before you start hunting

So what does a Luxury Property Buyer’s Agent actually do? A Luxury Property Buyer’s Agent is a licensed professional that specialises in searching and evaluating property. They can also assist with negotiating the purchase of a property on your behalf. So a Luxury Property Buyer’s Agent can guide you through the entire process of searching, evaluating, and purchasing a luxury property.

Like any profession, no Luxury Property Buyer’s Agent is the same. Some are better than others. Some will only specialise in certain types of luxury properties or certain locations. Some might have better experience or credentials than others. You should take all these factors into consideration when you’re looking for and dealing with a Luxury Property Buyer’s Agent. To help you find the right agent, we’ve come up with the most important questions you should ask. 

If your Luxury Property Buyer’s Agent hasn’t secured many off-market sales in the last two years then that could be your first sign they’re not really experienced with selling luxury property. So it’s definitely worth asking a buyer’s agent how many off market luxury listings they can show you.

What are your credentials?

A good Luxury Property Buyer’s Agent should have relevant experience and credentials. How else are you going to know how qualified they are for a job? A good place to start is to by finding out if your buyer’s agent is registered with the Real Estate Buyers’ Agents Association of Australia (REBAA). This association is responsible for establishing guidelines for the conduct of real estate buyers’ agents across Australia.

If your buyer’s agent isn’t registered with the REBAA, then they may not be practising with the strict standards of the association. A certificate of registration is a basic and entry-level requirement needed for a buyer’s agent to work in this industry.

How many silent listings have you secured?

Start searching for luxury properties and you may find a scarce amount of listings for them on popular real estate websites like realestate.com.au. A successful Luxury Property Buyer’s Agent will be able to give you access to several properties that are intended to be sold off-market. The sale of these luxury properties can also be referred to as a ‘silent sale’. 

What suburbs do you specialise in?

If there’s a particular suburb you want to buy a luxury property in, it’s best to choose a local expert. A buyer’s agent with years of experience in one area will have intimate knowledge of real estate for this cluster of suburbs. They will most likely be able to share with you information on how the average property sales in these suburbs have performed, what the current trends are, and forecasts for the not-too-distant future. 

A good local buyer’s agent should have well-established contacts in their industry. For the sake of their own success, it pays for them to have exclusive access to luxury properties that no one else can offer. Exclusive access to property listings is just another advantage local Buyer’s Agents should have over others that are not used to working in a particular suburb. 

What are your fees?

It’s always crucial to ask a luxury property buyer’s agent what their fees are before you hire them. You don’t want to get caught out paying more than what you expected for a service. A buyer’s agent should be able to give you an honest breakdown of their service fees and charges.

It’s also important to note that a buyer’s agent fees can vary depending on the scope of work they offer. So don’t get discouraged by agents with higher fees. They might just be more open with their charges than others. An agent’s full service fees can vary from 1.5-2% + GST of your property’s purchase price. 

Your agent may charge for a ‘negotiation only’ service where they are only required to negotiate a property price before, during, or after an auction. Fees for this service can sit around 1% + GST of the total purchase price for your luxury property. If you’re only hiring your buyer’s agent to bid at an auction, you could be paying up to $500+ for each auction they attend.

How long does it take to buy a property?

Asking an agent this question can give you a reflection of their own process and how successful they are. The amount of time it takes to secure the sale of a property can vary depending on the client and the seller. However, it’s always a good sign when a buyer’s agent has been able to provide a quick turnaround on a property purchase. 

A Luxury Property Buyer’s Agent in Melbourne should be able to show you recent examples of property purchases. These examples will give you a better idea of how long it may take to secure a property. Depending on the seller, a property purchase can require a lot of research and negotiating. 

It’s no small feat when a buyer’s agent is able to provide a quick turnaround on a property purchase. So keep this in mind when they show you the results of their recent purchases for other clients. Recent purchases can be a great indicator of the time and effort that a buyer’s agent puts into their service. 

Additional advice

So before you engage in the services of a Luxury Property Buyer’s Agent, it’s definitely worth doing your research. Ask as many questions as you need to until you’re confident you’ve found a professional you can rely on. Always ask questions about fees, what the service includes, and what the agent’s credentials are. A good Luxury Property Buyer’s Agent can help you secure the house of your dream’s when proper research and negotiating tactics are carried out. 

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