Understanding a Buyers Advocate
What is a Buyers Advocate?
A buyers advocate, also known as a buyer’s agent, is a licensed real estate professional who represents the interests of the buyer in real estate transactions.
As an independent Buyers Advocate/ Buyer’s Agent, they don’t sell real estate; they only work for the buyer.
Their primary role is to assist buyers in finding and purchasing properties. They offer a range of services that may include:
- Establish Criteria: Provide valuable insight on what you can purchase for your budget and help clarify any compromises that may need to be made.
- Property Search: Identifying properties that meet the buyer’s criteria.
- Market Research: Providing information on market conditions, property values, and trends.
- Inspections: Arranging and attending property inspections.
- Evaluation: Assessing the property’s condition and value.
- Negotiation: Handling price negotiations with the seller or real estate agents.
- Contract Review: Assisting with the review and understanding of contracts and legal documents.
- Closing: Coordinating the final steps of the purchase process.
Buyers agents aim to save buyers time, provide expert advice, and secure properties at the best possible price and terms. They can remain objective when evaluating a property and provide an unemotional view on what is likely to best suit your needs.
Benefits of Working with a Buyers Advocate
Save Time, Money & Stress
When you engage Buyers Advocate, you place yourself at a distinct advantage to other property purchasers allowing you to enjoy a number of benefits;
- Make informed decisions by utilising the buyers advocates extensive knowledge of the real estate market, including trends, property values, and neighbourhood insights.
- Save time by having a professional search the market for you (no more searching the internet and inspecting properties on the weekend so you can spend it with your family, friends or to relax!)
- Eliminate stress and frustration of being shown inappropriate or unsuitable properties by selling agents that don’t listen to buyer’s needs (no more dealing with Real Estate Agents)
- They can keep you anonymous which is crucial in todays market given the extent of AI and customer profiling
- Use a professional negotiator to obtain the lowest possible price (the vendor has a real estate agent on their side!)
- Gain access to the whole market including off up-coming and market listings (not all property is advertised)
- Remove the emotion, stress and frustration of the entire purchasing process (avoid costly mistakes)
- For properties sold at auction, buyer’s advocates can bid on behalf of the buyer, using their experience to strategically place bids.
- Receive independent and unemotional advice to provide you with peace of mind (source the right property with the best prospects for capital growth).
- Arrange building and pest inspections and help you make sense of them.
- Buyer’s advocates also often have a network of trusted professionals, including mortgage brokers, building inspectors, and solicitors, which can be beneficial during the purchasing process.
Role of a Buyers Advocate
Expert Guidance in the Buying Process
- The role of a buyer's agent is to represent and protect the interests of the buyer throughout the process of purchasing real estate.
- A buyer's agent can help you determine your wish list of what you need and what you want in a property.
- They can evaluate sales data, suburb values, and capital growth prospects and explain the results in plain language.
- They can help you make a decision based on your priorities and ensure you are aware of current market conditions and expected property values.
- They will complete thorough due diligence to avoid any nasty surprises.
- They can put you in the strongest position to buy the property for the lowest possible price.
Choosing the Right Buyers Advocate
Key Considerations
Engaging a buyer’s advocate, also known as a buyer’s agent, involves considering several factors to ensure you get the best representation and achieve your property goals.
Here are some key considerations:
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Experience and Expertise: Look for a buyer’s agent with substantial experience in the real estate industry and local market and check their track record, including the types of properties they have successfully helped clients purchase. If you are an investor it may also help if they have their own property manager to manage your investment.
- Credentials and Memberships: Verify their professional credentials, such as being a licensed real estate agent. Also membership in professional organizations, like the Real Estate Buyers Agents Association of Australia (REBAA) and the Real Estate Institute of Victoria.
- Services Offered: Understand the scope of services they offer, including property search, evaluation, negotiation, and auction bidding. Ensure their services align with your specific needs.
- Fee Structure: Inquire about their fee structure, whether it’s a flat fee, a percentage of the purchase price, or an hourly rate. Compare fees among different advocates to ensure competitive and transparent pricing.
- Negotiation skills: You need an advocate who knows what they are doing to ensure you don’t over pay or miss out.
- Market Knowledge: Assess their knowledge of the local market and specific neighborhoods you’re interested in. They should be able to provide insights on market trends, property values, and investment potential.
- Communication and Rapport: Choose someone who communicates clearly and regularly updates you on the progress. Establish a good rapport to ensure a comfortable and trusting working relationship.
- Reviews: Check online reviews and ensure they have a good reputation.
- Conflict of Interest: Ensure they no conflict of interest with sellers or developers. They should be impartial and have only your best interests at heart. Be wary of a selling agent also masquerading as a buyers agent.
- Contracts and Agreements: Carefully review the contract or engagement agreement. Pay attention to the terms, conditions, and any exclusivity clauses.
- Personalized Approach: The advocate should offer a personalized service tailored to your specific needs, preferences, and budget. They should take the time to understand your property goals and requirements.
By thoroughly considering these factors, you can select a buyer’s advocate who will effectively represent your interests and help you navigate the property market with confidence.
Costs and Resources
How Much Does a Buyers Advocate Cost?
The cost of hiring a buyers advocate can vary based on several factors, including the complexity of the property search, the location, and the advocate’s level of experience and reputation. It also depends on the level of service required.
Buyers advocates typically offer three main services; full service, appraise and negotiate if you have found the property and auction bidding.
- Here are the common fee structures:
- Percentage of Purchase Price: A commission-based fee calculated as a percentage of the property’s purchase price, typically ranging from 1% to 2%.
- Retainer Fee: An upfront fee paid at the start of the engagement, which may be deducted from the final cost or be an additional charge.
- Hourly Rate: Some advocates charge by the hour, with rates varying widely but generally ranging from $150 to $500 per hour.
- Tiered Pricing: Some buyers agents offer tiered pricing based on the level of service provided, such as full-service packages versus more limited advisory roles.
It’s important for buyers to discuss and understand the fee structure with their advocate upfront and ensure that all costs are transparent and agreed upon in writing.
How Much Does a Buyers Advocate Cost?
- When buying property, utilizing various resources can greatly assist in making informed decisions. Here are some useful resources for property buyers:
- Real Estate Websites: Realestate.com.au, Domain (Australia) for extensive property listings, suburb profiles, and price guides.
- Government and Official Sites: Local Government Websites for information on zoning, planning regulations, and local amenities.
- Property Title and Land Records Offices: To verify property titles and check for any encumbrances or liens.
- Mapping software: Such as Nearmap or Landchecker to check title sizes and assess the surrounding environment and proximity to essential services.
- Financial Tools and Calculators: Mortgage Calculators to estimate monthly payments and affordability and budget planners to help manage and plan finances effectively.
- Market Analysis Reports: Such as CoreLogic, REA Group for detailed market analysis, trends, and reports on property values and forecasts.
- Online Forums and Communities: Such as propertychat for peer advice, experiences, and community support.
- Real Estate Books News and Magazines: For the latest news and trends in the real estate market.
- Educational Workshops and Seminars: For the latest news and trends in the real estate market.
Using these resources, property buyers can gain valuable information, guidance, and support throughout the buying process, ultimately leading to more informed and confident decisions.
If this seems overwhelming or time is factor you should contact our professional buyers agents for a consultation call.
