Are Buyers Agents Worth The Money?

“Anyone is capable of buying a home, right?”

Contemplate this: over a span of 20 years of property ownership, the proprietor will shell out twice the initial purchase price in interest fees to the bank.

This doesn’t even account for ongoing renovations, repairs, and the stamp duty paid during the acquisition process.

The maintenance expenses associated with owning a property and subsequently selling it are crucial for maintaining low long-term costs and ensuring that the resale price surpasses that of other homes in the area.

During the buying process, you’ll be contending with seasoned property advisers commonly known as real estate agents. Their skilled in selling ice to Eskimos at a premium price and then tell the world about how high the price was. 

So this is why buyers employ the services of buyer’s agents to navigate property purchases effectively and negotiate terms for the right property.

Why People Hire Buyers Agents?

Real estate agents are hard to deal with. 

Many buyers, whether they be first or second home buyers or buying an investment property find the process very involved, expensive and time-consuming. Some of 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.

Buyers often face challenges in the intricate details of the process. Agents who provide ambiguous information about the reserve price, engage in underquoting, exaggerate the appeal of a home, maintain persistent follow-ups, and create pressure through auctions and private negotiations contribute to the complexities encountered by buyers.

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.

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The most value 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.

Shorten your time on market. 

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 guesswork 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.

You don’t have to bid at auction.

If you have ever attended an auction, you will understand how gut wrenching it can be to put your hand up and bidding in font of 50 other people.

Buyer’s agents are skilled at bidding, they will put pressure on all bidders at auction, know when to bid and most importantly when to walk away.

One of the biggest advantages of a buyer’s agent is if the property doesn’t sell and passes in, you will be required to face off with the real estate agent. Your buyer’s agent will negotiate face to face with your real estate agent rather than you.

Emotional Detachment.

Have you ever bought a big-ticket item like a car, set yourself a budget only to walk out spending 30% over your set price? Houses usually work that same way.

Buyer’s get emotionally hooked into a property, prior to purchasing it’s natural to image how your couch is going to look, where your kids are going to play or where you’re going to hook up your big screen tv.

During an intense negotiation many buyers see their dream slipping away as the price increases, hence why many buyers can pay allot more than expected.

A buyer’s agent has no emotional attachment to any property there buying, a B.A is looking at the situation for what it is. They set a walk away price prior to auction keeping clients out of trouble.

 Access to off market property.

Off market real estate is property that is for sale without being advertised on all the real estate sales platforms.

Dealing with so many real estate agents naturally buyer’s agents have access to off market property & previews to listings that are coming to market.

There are serious complexities when dealing with off market listings, buyer’s agents are definitely the people to speak to when it comes to verifying a legitimate good quality off market property.  

Qualifications and Experience.

When your spending a lot of money it’s easy to second guess the validity of what you’re doing.

Even if you’re buying one of the cheapest property’s, this is still a large amount of money that most people wouldn’t deal with on a day-to-day basis. If your reliant of finance, your bank is trusting you know what you’re doing hence it’s on you to make sure that property stacks up and is a sound move.

A buyer’s agent can be the voice of wisdom that can be the wise real estate advice you need to take the next step.

Tip: a buyer’s agent should be a fully licenced estate agent; this can be checked on the public register via the consumer affairs website.

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.

Benefits of a B.A: 

• 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.

Things to watch out for: 

• Can be costly with hidden fees. Look for agents with a fixed rate
• Buyer’s agent’s that don’t have enough exprience. 
• Hiring a buyer’s agent without the correct real estate license.
• Don’t have a good track record of closing deals.
• A buyers agent that has never owned property will struggle to understand what make a good property for the long term. 

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