What Is A Buyers Agent? The Definitive Guide 2017

Today we will discuss ’what is a buyers agent’.

In this guide we will show you how a buyers agent will help you buy your dream property.

We will look at why they have become so popular.

In summary if you want to buy the best property, a buyers agent is a must.

Let’s get to it.

What Is A Buyers Agent?

A couple looking to buy a property trying to understand what is a buyers agent

A buyers agent is also known as a ‘buyers advocate’.

They are licensed real estate professionals.

A buyers agent will find you the best property four your circumstances.

They will work out the properties potential for you and negotiate the lowest price.

Real estate agents sell property for their vendor.

Buyers agents buy property for their purchaser.

What Does A Buyer’s Agent Do?

Buyer’s agents look after the property purchase for their buyer from start to finish.

We like to outline the process below:

  1. Future Planning – deciding where you want to be in 5-10 years time.
  2. Area Selection – find the best area to meet your goals around Australia.
  3. Property Selection – select the right market and property for your goals.
  4. Property Sourcing – find the very best properties within the area.
  5. Negotiations – between the sales agent will save the buyer time and money.
  6. Due Diligence – the buyers agent will organise inspections and the contract.
  7. Property Management – you can achieve the highest rental prices with our agent network.

Why Use A Buyers Agent?

A lack of time, knowledge or motivation tend to complicate buyers.

Custom Service

Too much information can overwhelm buyers.

A buyers agent will sit down with you and discuss your goals and ambitions.

These may extend from short-term to long-term goals.

Goals may include wanting to buy within 6 months.

They may also include statements like “we want to retire by age 55”.

With an understanding of your goals the buyers agent can start work.

Get The Upper Hand Against The Rest Of The Market

There are many ways a buyers agent can give you an upper hand.

Buyers agents know a large number of real estate agents.

These may extend to a few in a single suburb to hundreds around the country.

Successful relationships between real estate agents and buyer’s agents can be the difference between success and failure.

A few hours in a contract race can make or break a property you love.

Buying Like A Local

Local lady using phone in cafe

Without local knowledge you might as well be a tourist.

A proper understanding will have a dramatic affect on where you purchase and what you purchase.

In fact, over the years, we see this as one of the more crucial factors when buying correctly.

That’s because having a locals perspective gives you better insight when making informed buying decisions.

Through this knowledge you can easily understand what sort of housing is in demand.

You can also understand where the local hotspots are, generally leading to higher street prices in those pockets.

The most commonly used sales process will vary between each local market.

Some markets prefer auctions, whilst others use private treaty.

Invest Around The Country

Australia map in blue
An investor may not want to invest in a local market.

Some interstate markets are very affordable and allow investors to spread risk.

When investing interstate the property must meet the local rental market needs.

A buyers agent can understand the driving factors of national markets.

Long-Term Buying Relationship

Investing in a buyers agent can develop a long-term return you can’t imagine.

This investment can pay you back many times over.

A strong relationship based on trust and respect can lead to property options you wouldn’t have seen.

This can put you ahead of the market and speed up your buying process.

Remove The Emotion

Due to properties expense, it is often only purchased a few times during a lifetime.

Buying property can be an emotional process as you want to get the decision right.

Needs vary between the design, layout, schooling, transport, shopping, entertainment, eateries, parks and neighbourhood.

Having a buyers agent on your side helps remove emotion which can cloud buyers decision making.

At times leading to inflated real estate prices and mortgage stress.

Talk Like The Pros

Real estate agents are known for using jargon and vagueness when needed.

Buyers are often misled during a negotiation.

Often times buyers invest days of worry and emotion into a property they may never have a chance to actually purchase.

Buyer’s agents can look past the jargon and understand whether a property is worthwhile or not to save disappointment.

Language Issues

English is not the primary language for many buyers.

In some instances buyers are from overseas.

It can become very hard to deal with a real estate agent in these instances as words are often lost in translation.

A buyers agent can resolve the issue.

Invest With The Pros

Classical house image
When investing in property you need clear goals.

Clear goals allow you to chose the correct property investment strategy.

These can be short, medium or long-term.

You will also need to understand which investment areas will achieve above market growth with lower rental risk.

A professional can help you in determining your short, medium and long-term goals.

They will create a total service to buy you the best investments you can afford.

Have Access To More Properties

Off-market properties are sent to buyers agents on a daily basis.

These type of properties are becoming more common.

In these cases property owners prefer selling with limited open homes.

Early Access

In certain instances the first inspection can occur prior to the first open home.

Getting in early before the first open home can be the difference between success or failure.

Save Money

You can’t save money if you are unsure of what a property is worth.

A buyers agent provides peace of mind when buying real estate.

They understand how to value property.

You will be able to work out the highest ‘market price’ you can afford to pay.

Free Up Time

Time is becoming more scarce.

Often we see clients who have spent months or years searching without much success.

Usually due to a lack of planning and market understanding.

During the process the buyer may get confused and second guess themselves.

Leading to countless weekends spent at open homes.

Hours upon hours spent crawling through the major real estate search engines.

Remove Stress

Buying a property can be a very stressful process.

Caused by a variety of factors.

Trying to understand the value of a property can take a great amount of work and local market expertise.

Organise the contract and pest and building inspections.

Negotiating the price through private treaty or bidding at the auction.

A buyers agent will do all this for you, placing you ahead of the game.

Buyers Agent Fees

Full search buyers agents charge a fixed percentage of purchase price or flat fee.

These success fees are usually around 2% of the purchase price, however our fee structure at 37 Property Group is much less.

Professional buyers agents also charge an engagement fee ranging from a few thousand dollars to 50% of the purchase price.

Once again our engagement fees are much less.

Day In The Life Of A Buyers Agent

A buyers agent could start the day by checking emails early in the morning.

The most exciting part is seeing if new off-market listings are available.

Emails may have questions from current or new clients.

Followed by carefully researching through any new listings in the market.

There may be some meetings during the day at a local coffee shop.

Around midday there might be a pre-inspection for clients too busy to attend.

In the late afternoon a buyers agent may follow up real estate agents on previous day offers and new properties of interest.

Reports created for clients with worthy properties.

Meetings may occur in the early evening for workers to busy to attend during work hours.

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37 Property Group Story

37 Property Group is a growing Sydney based buyers agent focussed on saving you time and money.

We are skilled at finding your dream home or investment property.

Founded in 2012 by Dean, who holds a Bachelor of Property Economics with Honours.

He brings years of experience and knowledge to every clients purchase.

He has been interviewed in leading property journals.

37 Property Group has a high level of repeat buyers due to our honest and professional approach.

Contact us today to see how we can make your goals come true.

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