Buyer’s agents are a relatively new concept in the real estate market and they are often confused with a real estate agent.
Getting to know a buyer’s agent is a great investment in securing your ideal property.
To help stop the confusion we have put together 8 misconceptions about buyer’s agents.
- Buyer’s Agents are actually Real Estate Agents.
No, buyer’s agent do not list or sell real estate. Buyer’s agents purchase real estate on behalf of their clients. If they are truly 100% independent, they will not be associated with any real estate sales. Representation from a buyer’s agent can range from a full service fee (sourcing, viewing, purchasing etc) to smaller options including auction representation. Most buyer’s agents are more than happy to discuss their services further with you and in great detail if you need.
2. They are expensive.
No, they are really quite cost effective and can save you from paying a lot extra on an emotional buy, especially if your property goes to auction. One way of looking at cost of a buyer’s agent versus the growth a property can make within 6 – 12 months. If you have been searching for a property for almost 6 months, in that time the property market can easily have grown costing you thousands more. Some suburbs in Newcastle alone have grown by 12% in 12 months.
3. They take ‘handouts’.
If they are truly 100% independent and only serving the needs of the buyer, there is no ‘handouts’ received from anyone. Buyer’s agents search for properties after gaining the buyers property goals and objectives, this way all properties presented to you will match your desired criteria. Buyer’s agents will only present properties you will be interested in viewing further with the aim to purchase. Independent buyer’s agents doesn’t accept any referral fees, especially when it comes to building inspectors, reports and pest inspectors. An independent buyer’s agent will only refer people because they are the absolute best in their area of expertise.
4. They can only view certain properties for sale.
Buyer’s agents have access to all properties listed for sale. It doesn’t matter what real estate agency, they can review all listed properties. They can set up viewing times for their client based on their busy work schedule, not off the real estate agents set viewing times. Thus allowing for private viewings rather than turning up on a typical Saturday morning viewing with numerous other would-be-buyers.
5. They don’t know much about property or the local area.
When hiring a buyer’s agent, it’s always best to hire an agent in the specific location you are wishing to buy. They will have excellent and extensive knowledge of the market, property prices, and the ‘up and coming’ hot spot suburbs. If looking for an investment property, these local buyer’s agents will also know all about the rental market and can possibly recommend a great local property management agency for your convenience. (Again please note, this referral will be based only on the ability and excellence of the property management agency).
6. All Buyer’s Agents are the same.
No, not all buyer’s agent are the same. Any good buyer’s agent will be 100% independent and 100% supporting you, the buyer. Great buyer’s agents are there to provide information and answers for buyers to help them make the most informed financial decision and level the playing field during the property settlement. By hiring a buyer’s agent, you are giving yourself a better advantage in the property negotiations as you have hired a professional to completely support you through the transaction. You are not alone in a stressful situation.
7. The best time to contact a Buyer’s Agent is at the end of my property search.
No, its definitely better speak with a buyer’s agent before you start your property journey. They can help direct you to financial lenders and discuss hidden cost factors that are involved in buying property. They will also give you advice with legals and ultimately save you hours of frustration. By planning your property journey a buyer’s agent can gently direct you in the right direction and save you money.
8. They will just agree with all my thoughts on properties.
Buyer’s agents will not just agree with your opinions on each property. They will be an independent voice giving you pro’s and con’s of each property. They can also point out the facts of budget and talk about compromise (balancing your budget against your wish home). Buyer’s agents will help educate you and protect your investment.
From these 8 misconceptions you can definitely see that hiring a buyer’s agent is a positive step towards securing your dream property. Stop wasting time and energy and get in touch with Property Solutions 101 today.
Property Solutions 101 are Newcastle’s premier buyer’s agents. If you have any further questions regarding our services please phone 0421 646 108 or send us an enquiry in the below contact us form.