When it comes to purchasing your next home, the consequences of buying the wrong property can be expensive and far-reaching.
That’s why buyer’s agents exist – to help you succeed in your real estate journey and stop you from overpaying or buying the wrong property – potentially saving you thousands in the long run.
Understanding the cost of a buyer’s agent only further highlights the value that their service provides.
How much does a buyer’s agent cost?
The cost of a buyer’s agent varies tremendously depending on the service you’re after.
For the most common service, which consists of everything from identifying the client’s property goals and needs, searching hundreds of properties, attending home opens through to the negotiation and settlement, the cost varies but there is usually an upfront fee and a success fee, which is only payable once the client’s property settles.
The fees are similar to what other real estate professionals charge, which may be a flat fee or percentage based. It works out to be a small percentage of the property price.
Where the client has found their own property, the final fees may be lower than if the buyer’s agent conducts the search. It depends on what is included and whether the buyer’s agent will be conducting due diligence and price assessment or just preparing the contract and negotiating.
Buyer’s agents also offer to bid at auction and usually there is a bidding fee, followed by a success fee if the property is purchased. This can also be a flat fee or percentage.
In the scheme of things when you are looking at one of the biggest purchases you will ever make in your life, hiring a professional who not only saves you hours of research but potentially thousands by helping you find your home at the best possible price, really is worth it.
How much money could I save using a buyer’s agent?
Besides trying to get you the best possible price on a property, hiring a buyer’s agent also saves you time and hassle.
Prospective buyers spend their weekends and evenings searching and attending home opens, which eventually cuts into family and personal time.
Buyer’s agents do the hard, time-consuming work and bring the clients properties that suit their needs and budgets, after checking out hundreds of potential buys, so they really save time for the buyer.
Case study
An example of this is Helen, a client looking to purchase a property for her disabled son. The son was otherwise unable to make and assess a property for his own position.
The buyer’s agent services were engaged to source a property, highlight any risks, and put the client in touch with an accountant to ensure the purchase was structured in a tax effective but safe way for the control of the asset and negotiate the sale.
The property developer’s contract was over 100 pages long. This would have taken thousands of dollars of legal fees and a significant delay to this buyer being able to safely purchase.
A buyer’s agent, like a real estate agent, is trained to read a property contract and understand the property conditions, though they are not lawyers and should never replace legal advice, when required.
Through having dealt with this developer frequently, the buyer’s agent cut straight to the material property facts and was able to convey this information to the client to get the best possible outcome.
The property was purchased without competition for 15 per cent below asking price and the client is now living happily in a new property close to the comfort of his family and friends.
Source: REIWA.COM.AU
Want to know more?
Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you. If you want to know more about our services feel free to contact us directly at (08) 9381 7450 and we’re more than happy to answer your queries.
FREE Resources
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Established in 2004, Property Wizards works with local, interstate and overseas buyers seeking to buy property in the greater Perth metropolitan area.
Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the ‘hidden gems’ that can outperform the market in capital growth and rental returns for long term wealth creation. Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.
Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.
Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you. It really depends on the amount of time you’d like to put in.
