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Is Your Buyers Agent An Independent Property Buyer ?

Wise Real Estate Advice - Buyer Agents Melbourne > Is Your Buyers Agent An Independent Property Buyer ?

An independent buyer’s agent is a real estate professional who exclusively represents homebuyers, with no ties to sellers or developers.

Unlike traditional agents who may work for both sides (potentially leading to conflicts of interest), an independent buyer’s agent is dedicated solely to helping buyers find and purchase homes.

These agents operate independently from financial advisors, developers, and other real estate professionals.

A qualified property buyer’s agent often has experience as a selling agent, is fully licensed, and owns property themselves, ensuring they understand the market from multiple perspectives.

Is Your Buyers Agent An Independent Property Buyer ?

They are solely compensated by their clients, refusing commissions, fees, kickbacks, or gifts from any other parties. Independent buyer’s agents are licensed experts in searching for, appraising, and negotiating property purchases on behalf of buyers. They do not sell real estate.

The Risks of Using a Non-Independent Buyer’s Agent

A buyer’s agent who is not independent can lead to several potential disadvantages for the buyer:

Conflict of Interest: A non-independent agent may experience a conflict of interest since they must balance the needs of both the buyer and the seller. This balancing act can make it challenging for the agent to fully advocate for the buyer, particularly during negotiations.

Limited Advocacy: Because the agent is obligated to both parties, they might not push as hard for the buyer’s interests. For instance, they may hesitate to negotiate a lower price or better conditions to avoid upsetting the seller. There might be a bias toward favoring the seller to maintain good relations within a developer to secure a higher commission.

Pressure to Close the Deal: A non-independent agent might be more concerned with closing the deal than ensuring it’s the best deal for the buyer. This focus can result in the buyer not receiving the most favorable terms or price.

In summary, when a buyer’s agent is not independent, the buyer may not receive the full level of support and can diminish trust and make the transaction process more stressful. 

What is a double kick back / commission?

An example is: A buyer’s agent Frank is hired by John to purchase a suitable investment property. Franks advises John to purchase a townhouse from a local developer whom is paying Frank an undisclosed fee for the referral. 

What is wrong with this scenario? John is paying Frank the buyer’s agent to use his experience and buy him the best possible property. Frank has a conflict of interest if he refers any third party’s properties if he is receiving a financial benefit from that third party. 

Conflict of interest: a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.

Australian Financial review posted an article on a buyers agents that was caught in the act of receiving double commissions: ‘Home buyers agents, what you need to know.’ 

What the Law Says

The Estate Agents Professional Conduct Regulations 2008 set out the standard of conduct expected of agents and agents’ representatives in their day-to-day dealings with clients.  

On the topic of double kickbacks, the law states: Estate, property managers and buyer’s agents must not:

        • put their interests in conflict with those of their client by acting for another person
        • accept commission from both a client and a consumer for the same transaction


For more information on this topic please visit the consumer affairs webs site.

Qualifications and Experience of a Independent Buyer’s Agent

A qualified independent property buyer should possess the following professional experience and academic qualifications:

  1. A minimum of 1 year working in real estate, specializing in property sales.
  2. Completion of an agent’s representative course, typically a TAFE qualification completed over 5 days.
  3. Certificate IV in Property Services, specifically for senior employees and principal agents (full real estate license).
  4. The agency must be licensed for the company under which they operate.

A reliable method to verify whether an agent has met these criteria is to check the public register provided by Consumer Affairs Victoria. This register includes the agent’s full name, type of license, license number, registered office suburb, and current license status.

Additionally, memberships in organizations such as the Real Estate Institute of Victoria are valuable indicators of an agent’s commitment to professional standards.

About Our Independent Buyers Agents Service

Our Buyers Agents act on behalf of their client’s best interest. We recommend property on and off market, negotiating and buying some of Melbourne’s best real estate.

We don’t recommend property from developers or sell real estate. We don’t have relationships or recommend any third party and we don’t receive any sort of financial gain of any third party.

With regards to off market listings, our buyer’s agents do not take a commission or fee from sellers.

Our Approach to Property Acquisition

Throughout the entire process, you’ll collaborate with a dedicated independent buyer’s agent specializing in the Melbourne property market, ensuring you won’t be assigned to an assistant.

Property Search

Expect a weekly email update showcasing both on and off-market properties, meticulously tailored to align with your property buying criteria.

Leveraging our extensive experience, we thoughtfully curate a shortlist consisting exclusively of the finest property listings in Melbourne, aiming to streamline the property ownership process for you.

Property Inspection

Each property inspection we carry out is documented with accompanying commentary.

We evaluate the efficiency of the property floor plan, the standard of fixtures and fittings, preventive maintenance measures, and identify any visible structural defects.

Our exterior inspections offer a thorough 360-degree perspective of the property, encompassing ground-level views, aerial perspectives utilizing drones, and street views of neighboring properties.

Negotiation

Your buyer’s agent will tailor and communicate a bidding strategy designed to both save you money and apply pressure on the competition.

Each negotiation follows a predetermined walk-away budget, consistently aligned with market value.

We excel in employing various methods used by real estate agents for property sales, such as auctions, private negotiations, and sales by set date.

Every property negotiation demands a unique approach. Our repertoire of tactics includes pre-auction offers, post-auction offers, and intricate private negotiations.

You won’t need to personally interact with any real estate agents; your buyer’s agent will handle the representation and oversee the entire process on your behalf.

Property Management

Our inhouse rental team, Property Managers Melb, offers a thorough one-stop solution for property investors.

With a proven track record dating back to 2014, overseeing the rentals of over 200 clients, we specialize in the leasing and management of rental properties within the Melbourne real estate market.

What are our charges?

Be confident that our fees are fixed, ensuring stability and consistency irrespective of your budget and spending.

All our plans come with a 6-month term, during which we will participate in as many auctions or private inspections as needed to fulfill your objective of property acquisition.

Click here for more details on buyer’s agent fees.

Buying a home is likely be one of the most important plans you’ll ever make. It should therefore be a smart, thought-out move.

With our experienced independent property advisors on your side, you’ll be able to sleep easier, enjoy knowing that you’ve made an intelligent choice both now and for the future.

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