When you are looking to buy a home in Melbourne, you have many decisions to make. You’ll have to decide on a budget, the type of property you are looking for and the neighbourhood that will work best for you.
You will also want to consider whether or not you want to hire a buyer agent.
Like any part of the home buying process, hiring a buyer agent comes with its share of pros and cons. The biggest downside for most homeowners is the cost. Buyer agents charge a fee and homeowners may feel like they can save money by not hiring an agent.
However, buyer agent provides a service to homebuyers that make them worth their weight in gold.
The article will review the benefits of working with an agent so you can decide if you will be hiring one for your next home-buying venture.
What Does a Buyer Agent Do?
Let’s start by taking a look at the various services a buyer agent offers.
The Search: The first step of the process is to find properties that suit the buyer’s needs.
Buyer agents work with their clients to find out what they are looking for in a home. Then they use their resources, which often consist of connections and listing websites the client doesn’t have access to, to find properties that meet the buyer’s criteria.
They will show buyers’ listings, and if the buyer is interested, they will set up a time when they can come and see the property.
Moving the Process Forward: Once the buyer finds a home they like, the agent will schedule inspections and appraisals to find any potential issues that weren’t revealed and determine what the home is truly worth.
Negotiate: Finally, the buyer agent will negotiate with the seller to get the best price possible.
Moving Towards Closing the Deal: Once the deal has been made, the buyer will make sure all documents are in order to ensure the sale doesn’t fall through due to a technicality.
Benefits of Working with a Buying Agent
As you can see, the buyer agent handles a lot of responsibilities making the process easier for the buyer. Here are some other benefits an agent provides.
Saves Time: A buyer agent is quite familiar with the home buying process. They will save buyers time by finding properties quickly saving them months of valuable time.
Research shows that it can take buyers 6 to 12 months to find a property considering the time they will spend getting familiar with the market and finding the best listing sources. An experienced agent can get the work done in as little as 30 days.
Saves Money: A buyer agent will help you find the best property for your money ensuring you make a smart purchase. He will negotiate with sellers to get you the lowest price possible. These money-saving steps will more than make up for any fees being charged.
Brings Knowledge: Buyer agents have insight into the market, the best neighbourhoods for home buying, what improvements can be made to the property and more. Working with a buyer agent increases your chances of making a great investment.
bonus: Help to sell your property: A buyer’s agent does not sell real estate; rather they look for a home on behalf of buyers whereas the selling agent works for the vendor (seller). By law an agent cannot act for (and accept a commission from) both parties in the transaction. This means that if your house ticks the checklist of a buyer’s agent’s client you could technically sell it and pay no agent fees whatsoever.
To sell your property with no commission, visit directhomeselling.com.au
What Does an Agent Cost?
Many of you may still be concerned about the expense of hiring an agent. Let’s take a look at how much this will set you back.
An agent will charge according to the services they are providing. Here are some examples of how it works.
- Full Service: If you want an agent who is there every step of the way from the search to closing, fees are typically set at 1.5 to 2.0% plus GST (goods and service tax) of the purchase price.
- Appraisal and Negotiation Only: If you hire an agent for the appraisal and negotiation processes only, you can expect to pay 0.9% plus GST on the purchase price.
- Auction Bid Only: If you send an agent to an auction to purchase your home, fees will be around $500 plus GST for attendance and $1000 plus GST for success.
Now that you know what a buyer agent can bring to the table, will you be hiring one for your next home-buying venture? You can find and compare buyers’ agents here
