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?
An independent buyer’s agent is paid by you, the buyer, and represents your best interests only. 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?
A buyer’s agent is a professional who deals with the selling agent on an equal footing and aims to get you the best price possible.
Importantly, they can save you overpaying for a property that is overpriced or that you might have fallen in love with.
They can save you from making an expensive mistake by buying the wrong property or a property with hidden flaws.
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.
An example of this is Robert and Vicki, clients looking for an investment property to hold for the long term and take advantage of Perth’s potential market growth.
Robert and Vicki and pressed for time, running a busy medical practice, having kids at school and their own hobbies and lives to lead.
The buyer’s agent was engaged to source property and ensure it was priced right, had no hidden problems, was attractive to tenants and was the right kind of property to meet Robert and Vicki’s goals.
The property also had to be low-maintenance and in good condition as Robert and Vicki did not want to be bothered with frequent problems that would cause them stress or take up their time.
The buyer’s agent sifted through many available properties that might match the criteria and recommended one in Maylands.
It was low-maintenance, in a desirable location, attractive for tenants and potentially could be bought at the right price.
The client viewed the property with the buyer’s agent and felt it was perfect.
After a thorough due diligence checks to confirm there were no hidden problems, the buyer’s agent submitted an offer very quickly and secured the property for a good price.
They avoided the competing offers that would have followed in a few days’ time and driven prices up.
Building and pest reports were done and the property passed and went on the settle.
Throughout the process, the client had everything taken care of, wasted no time and had no cause for stress. They bought at a good price, did not overpay and had the peace of mind they were not making a mistake and there were no hidden problems that could come back to bite.
The case study describes one of Property Wizards’ client journeys. If you’d like to know more about this process please don’t hesitate to contact us.
If you’d like access to the latest information our professional Buyer’s Agents have sourced on Perth property, feel free to call us on (08) 9381-7450 or fill in this no-obligation Getting Started form to get the ball rolling.
If you’d like to learn more about property investment strategies, or you’d like to clarify your own strategy and goals, why not request our 4 Strategies Download to get the ball rolling.
Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area.
Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide homebuyers and property investors with the same level of representation that property sellers have benefited from for years.