WHAT DOES A BUYER’S AGENT DO & DO YOU NEED ONE?
A buyer’s agent generally offers two types of services:
HOW MUCH DOES IT COST?
Some buyer’s agents charge an engagement fee before they begin the search for a home. Users of the full service can expect to pay a flat fee or a percentage of the property purchase price.
Ann Paterson charges a flat fee for service.
Using a buyer’s agent to bid at auction, meanwhile, carries a lower fee as there’s much less time involved.
THEIR FEES MAY BE TAX DEDUCTIBLE IF YOU’RE BUYING AN INVESTMENT PROPERTY.
Investors should note that the cost of using a buyer’s advocate is generally tax-deductible when purchasing an investment property.
Why use a buyer’s agent?
Though there’s an increasing array of tools and data out there to help you make an informed choice when buying, it still takes valuable time, and if you can outsource that work to someone working in your interest, why not?
INVESTING KNOW HOW
Buyer’s agents who specialise in investment properties can help you source the right type of property in locations with good prospects for capital growth.
They understand market indicators and won’t just work from your requirements but will consider how to optimise your shortlist based on their experience.
This can save you time, money and stress in the long run – lessening your chances of making an ill-informed investment decision.
BIDDING AND NEGOTIATION
One of the most popular reasons people use a buyer’s advocate is to support them during the auction and negotiation process.
Bidding at auction can be an intimidating, emotionally daunting business and it helps to have someone objective to represent your needs in the heat of the moment.
IT HELPS TO HAVE SOMEONE WITH THE CONFIDENCE, EMOTIONAL DETACHMENT, AND TACTICS REPRESENTING YOU AT AUCTION.
Buyer’s advocates implicitly understand the process, including the tricks of the trade, and bring to auctions the confidence, emotional detachment and tactics necessary for a successful bid.
Many insist they can net their clients a purchase price often below that which they are willing to pay, while saving people precious time and emotional distress.
HOW DO YOU FIND A BUYER’S AGENT?
You can also ask friends, family or others you trust if they have one, they can recommend. Word of mouth is a great way to track down an agent with a good reputation. Just make sure they work in the area’s you’re looking at buying in.
Ask your prospective agent if they accept sales commission from vendors or developers. This isn’t common, but it’s important to know if they are not only acting in your interests.