Buying a property can be a complicated process. Not only does it involve a significant amount of money, but finding the right property can often be stressful as well. This is especially true if you have no idea where to start.
How much are the current prices these days?
Where do you go to get the best deals?
And when you have found the perfect property, what do you do next?
These are just some of the questions you may have when you are planning on purchasing your new home. At some point, it can get overwhelming. However, having a buyer’s agent such as Ari Agency, may be able to help you!
What Is a Buyer’s Agent?
A buyer’s agent, also known as a buyers advocate or purchasing agent, is a person or a company that offers to buy goods or properties on behalf of another party. In real estate, there are essentially two agents involved: a buyer’s agent, who works on behalf of the buyer, and a listing agent, who represents the interests of the seller.
What Are a Buyer’s Agent Roles and Responsibilities
A buyer’s agent plays a significant role in the entire real estate purchasing process. Essentially, they represent the purchaser in the real estate transaction. A buyer’s agent has the legal responsibility of protecting the interests of the purchaser and making sure that they get the best deal possible.
To do so, the buyer’s agent will be responsible for the following tasks:
1. Finding Listings
At the start of the process, the buyer’s agent will ask their client about their needs and preferences. This will determine what the client’s ideal home will look like. The buyer’s agent will also ask the client’s budget and preferred areas. Using this information, they will search through the market for appropriate listings and filter potential properties to be presented to the client. These properties will include on-market listings, off-market listings, pre/post-market as well as price reduced stock.
2. Scheduling Site Visits
When the buyer’s agent finds suitable properties that match the client’s needs and preferences, these will be presented to the client. The client will examine the listings recommended by the agent and will select which ones they want to view in person. The agent will coordinate with the respective listing agents (or home sellers) and make an appointment for viewing. In some cases, the buyer’s agent will also provide recommendations for any open house events that they believe the client will like.
3. Resource Person
As the buyer’s agent is at their client’s disposal for any questions or concerns, they will be responsible for answering any questions or clarifications from the client. This means that the buyer’s agent should be knowledgeable about the listings being presented to the client. As the client’s purchasing representative, they will also communicate and ask the listing agent or home seller questions on behalf of the buyer, regardless of whether the buyer asks them or not. The goal is to get more insights on the property that would best achieve the client’s interests.
4. Property Value Consultation
The client may not be that knowledgeable about the value of each property viewed. This is why the buyer’s agent will also provide insights on whether the property listings are over or undervalued. To do so, the agent will conduct a comparative market analysis for the client and make recommendations based on their analysis and the specifics of the property.
5. Negotiation with Listing Agent
When the client has chosen a property to purchase, the buyer’s agent will make an offer on behalf of the client and negotiate the price and the terms. They will inform the buyers of any counter offers made by the seller and consult them on whether to accept or amend them. The buyer’s agent will also inform clients of possible ways to make their offer more competitive, such as offering an unconditional contract or adjusting the settlement date. As soon as an offer is accepted by the seller, the buyer’s agent will work to have the contracts exchanged as soon as possible.
6. Recommending Other Real Estate Professionals
The buyer’s agent will guide and advise the buyers through exchange and settlement process. They may refer other real estate professionals, such as property conveyancers, solicitors or lawyers and inspectors, to help expedite the purchasing process and ensure the buyers’ interests are protected.
How Much Does a Buyer’s Agent Charge?
A buyer’s agent in Australia charges based on these three pricing models:
1. Fixed Fee
Buyer’s agents in Sydney who charge a fixed fee will have a preset cost of their services, regardless of the amount of the property purchased. However, the fees may vary depending on the service provided and experience of the buyer’s agent. For example, a sale negotiation only or an auction bidding only will be generally cheaper and may only cost a few hundred dollars compared to a full-service package (i.e. searching, negotiating and bidding).
2. Tier Fixed Fee
The tier fixed fee, on the other hand, will have a set of predetermined fees based on a property price bracket. For example, the buyer’s agent may have a fee of $5,000 for properties priced from $150,000 to $300,000, $7,000 for properties priced from $300,001 to $600,000, $9,000 for properties priced from $600,001 to $800,000, and so on. The tier fixed fee will generally increase with a higher property purchase price.
3. Percentage of a Property Purchase Price
Lastly, buyer’s agents who use the percentage pricing model will base their fees on the purchase price of the property. Buyer’s agents in Sydney generally charge between 1 per cent to 3 per cent, depending on the services provided. Somewhat similar to the fixed fee, the rates will increase according to the service and experience provided; a partial service may only be 1 per cent of the total property purchase price, while a full service may reach 3 per cent.
On top of these pricing models, a buyer’s agent fee may also include additional charges. Depending on the services provided, these costs may include costs for property assessment reports, formal engagement and due diligence fees, and interstate investors’ fees.
Where Can I Find a Buyer’s Agent in Sydney?
Buying a property in Australia becomes a lot simpler when you work with a buyer’s agent. If you’re planning on buying an investment property anywhere in Sydney, get in touch with Ari Agency to make property purchasing a hassle-free transaction.
Ari Agency specialises in buying property in the North Shore and Northern Beaches of Sydney. We are a team of highly driven buyer’s agents who understand the market well and offer a personable approach to our clients. We use our extensive network and connections to source only the best properties. For more information about our services, call us on 0405 428 471.