Are Buyers Agents Worth The Money?

Anyone is capable of buying a home, right?

In today’s property market where prices just keep souring and the value of homes are forever changing, it becomes very difficult for buyers to keep up with knowing exactly what is happening. Being one of the largest monetary purchases made in their lives buyers need to ensure it is a perfect purchase at the perfect price.

 

Due to buyers agency being a relatively new industry many buyers question the need of a buyer’s agent. Although, in today’s society where we are preoccupied with many of life’s other challenges, keeping us run off our feet, can make a task like buying a home very difficult.

 


A quick look at the pros and cons:

PROS

  • A real estate expert that is well aware of the market
  • An advocate making calculated decisions minus the emotion
  • Extensive knowledge of the suburb and it’s surrounds
  • Access to off market listings.
  • Expertise in negotiating process
  • Save time, money and stress.

COS

  • Can be costly with hidden fees. Look for agents with a fixed rate
  • Agents who bad communicators
  • Hiring a buyer’s agent without the correct real estate license.

 

The difficulty of dealing with real estate agents

Many buyers, whether they be first or second home buyers or buying an investment property find the process very involved, expensive and time-consuming. The challenges that buyers face can be off-putting and occasionally cause buyers to give up.

 

These off-putting experiences can often come through their dealings with real estate agents. In brief, the main objective of a real estate agent involves; listing properties for sale, managing a number of vendor relationships and selling many homes. Their relationships with buyers is not their primary concern.

 

There is good news! Buyer’s agents level the playing field, making the process of buying a property fair. By hiring a buyer’s agent a buyer will never need to make contact with a real estate agent for the entirety of the buying process.

 


Don’t buyer’s agents raise the property price? 

Some may believe that buyer’s agents are the cause of property prices being on the rise. This is nothing more than a incorrect perception. It would not be of any benefit if an agent didn’t try and get the best price for their buyer. Paying above market value is a thing for armatures and people with more dollars then sense.

Top 5 factors to consider when making your selectionIt’s generally competition that raises property prices and not buyers agents. There are always going to be more popular homes and suburbs then others
A great property is not always the most expensive property and certainly not one that is sold above the market value. Buyer’s agents know market value before making any offer on any property. Making offers within this value is what a good buyer’s agent will do every time.

A good buyer’s agent has spent enough time in the market to:

  • Know market value
  • Know the walk-away price
  • Know how to negotiate well

Time consuming process  

Being on the market, searching for the perfect home for over a year is quite common for many buyers. Often, buyers will be on time restrictions, for various reasons and this therefore causes a stressful situation.

 

Buyer’s agents take a lot of the guess work out of buying a home and are focused 100% on the task of finding the right property. Therefore, it can take an average of six to eight weeks, providing the criteria remains the same, to purchase a property for their buyer.

Time is definitely money when purchasing property. Particularly when the prices rise by 11% in a 12 month period.

Getting a great deal.

The most value a real estate agent and a buyer’s agent can give is through their ability to negotiate property price. Individuals only experience a negotiation a handful of times in their lives, where buyer’s agents negotiate property price several times per week.

 

Not only will they be able to negotiate the best possible price for you, the buyer but find a property with the best potential for capital growth. Certain calculations, research and knowledge is applied to by a buyer’s agent to determine this.

 

Director of Wise Real Estate Advice, Mark Ribarsky, claims ‘out of the hundreds of properties for sale in a particular suburb, only two or three are suitable for a good, long-term investment.’

 

This is a long-term, intangible value that can only be measured when the property is resold.

Top 5 factors to consider when making your selection 

Agents who have worked in both a buyers and seller’s market are of high value. A full real estate license is also essential, so make certain your buyer’s agent has one of these.

Fixed fees rather than a percentage of the purchase price is another preference you should consider when choosing a buyer’s agent.

Off market listings are something most buyer’s agents have access to. Ensure you ask about these before signing up with an agent.

A membership with the Real Estate Institute Of Victoria ensures agents are aware of the current laws and practices within their field. So ask your agent about this.

So if you’re someone that has been in the market for over 12 months, don’t like dealing with real estate agents or just simply time poor. Have a chat to a buyer’s agent and discover what they have to offer. The instant you begin speaking with one you will soon discover the wealth of knowledge they have in all things real estate. A buyer’s agent can bring true value to the buyer, saving them both time and money.

Have Our Buyer’s Agents Call You.

For an obligation-free conversation, contact Wise Realestate Advice on 1300 009 473 to discuss how their buyer advocates can turn your property goals into a reality