What is a Buyer's Agent?
Buyer's agents (also known as buyer's advocates), are licensed real estate professionals that solely represent the buyer's bests interests.
They do this through sourcing all on-market and off-market properties, undertaking all due diligence, negotiating on behalf of the buyer & assistance with any tasks leading to settlement.
In essense they are the opposite of a real estate sales agent. Though sales agents can and will assist in the purchase of a property, they are contractually obligated to represent their client to the best of their ability - the vendor.
Often skilled negotiators, sales agents must use emotional strings and leverage competition amongst buyers to achieve the highest price for their client.
With approximately 75,000 sales agents compared to the estimated 1000 buyer's agents, one can argue this is one factor which has contributed to Australia's meteoric property price rise.
In contrast, buyer's agents are very common overseas, with over 88% of transactions in the USA involving a buyer's agent.
The trend of using a buyer's agent in Australia has definitely been increasing, with many buyer's understanding the importance of outsourcing one of their most biggest transactions and investments of their life to a specialist.
Do I need a Buyer's Agent?
Not everyone will need a buyer's agent. Some will enjoy inspecting properties week in week out, some don't mind over paying for their family home they have an emotional attachment to in order to beat other buyers. Or some will have family or friends who can guide them through the many facets of property buying.
However there are many buyers who will struggle or be overwhelmed with the process. We find those who engage buyer's agents are buyers who:
- Are time poor professionals who don't want to spend every weekend for months looking at property
- Want ensure they access all off-market, pre-market & post-market stock, not just those on Real Estate or Domain
- Have been searching for months, spent countless funds on due diligence only to have their offers beaten
- Are tired of dealing with multiple real estate agents
- Want to ensure they don't emotionally over spend by having a professional appraise and negotiate on their behalf
- Want to make the buying process fun again!