What is a Buyers Agent or a Buyers Advocate?
According to Real Estate 'dot' com, a buyer's advocate is a
real estate professional
that specialises in searching for, evaluating and negotiating the purchase
of a house home or property on behalf of the buyer. Buyers Advocates do not sell real estate.
What does a Buyers Advocate do?
are licensed professionals that specialise in searching, inspecting, evaluating and negotiating the purchase of a home on behalf of the Buyer. Sellers have their Selling Agent working for them (and no matter how nice they are…. they are still working for their Seller!) buyers have their Buyers Advocate.
Why use a Buyers Advocate?
There can be a whole number of reasons to use a Buyers Advocate (or Buyers Agent) including:
- They can save you the time involved in researching properties, analysing markets and, in some cases, liaising with banks and solicitors.
- They can help you source suitable loan options.
- They can provide knowledge and insight for locations you’re unfamiliar with.
- They can save you travel expenses if you’re researching properties from interstate or overseas.
- They can provide advice and analysis for specific properties you’re interested in.
- They can access information about property sales yet to be listed.
- They can reveal details about a property that the seller’s agent won’t necessarily expose or an untrained individual may not consider.
- They will attempt to negotiate to secure the lowest possible purchase price for a property.
A buyer's agent can help you secure a better property, a better price, or ideally both, whilst saving you time and heartache!
By engaging the Buyer Advocacy service of Buyers Home Base, you can level the playing field. You have a professional to guide you through all of the various processes making sure that you are buying the right home – AND at the right price.
Why not use a Buyers Advocate?
As with every decision in life, there are plusses and minuses. Here are some things you might want to consider before engaging a Buyers Advocate.
- Engaging a buyer’s agent can make you lazy. If you
place all your trust in another party, how will you know you’re getting
a good deal? We strongly suggest that you make sure you test any assumptions, ask for clarification if anything is not clear to you and crunch the numbers!
- If you have the available time, inside knowledge of the real estate market and are highly experienced in the art of negotiation, perhaps you’re better off doing the job yourself?
- For investors, do note that no buyers agent can guarantee the performance or profitability on the purchase of any property. Property investing involves risk and it is a risk you have to be prepared to take.
- Miscommunication between you and your advocate can be costly. You need to be
specific about the type of property you want, what you’re using it for
and how much you are able to spend if they are to have any hope of finding properties
that fit your requirements.
- Each buyers agent varies in skill and
expertise. You want to choose one with experience in both the local real estate market you are targeting and the type of property you intend to purchase. If you’re after a first home for you and your family, don’t hire a buyers agent that specialises in off the plan investment properties.
Buyers Home Base recognise these short comings or risks and it is a key reason why we offer a Free Consultation to our clients.
What should you look for in a potential Buyers Advocate?
- Do they have experience in the real estate market? Ideally, they should have been a real estate agent. This way they know the "game".
- Do they know the area or market you are looking at? We don't think it is wise to engage someone who is experienced only in inner city properties if you are looking in the outer growth areas as they just don't know the local issues.
- Do they charge a percentage or a flat fee? Who benefits from a percentage fee? And what "extra work" is invlolved in purchasing a $1,000,000 property as opposed to a $500,000 property? None that we're aware of. So why pay more???
Are they licensed?
Buyers Advocate Principals should be fully licensed Real Estate Agents They should have attained a Certificate IV in Real Estate and then successfully applied to the Business Licensing Authority (BLA).
Also, in Victoria, they must have acted as a Real Estate Agents representative and held that license for a minimum of 2 years.
Do be warned however, that we understand there may be some Principals of Buyer Advocacy's who go to NSW, sit their license, and then return to Victoria and operate a Buyers Advocacy, without meeting the requirement of having had a minimum of two years Real Estate Agency experience. We strongly recommend you investigate any prospective Buyers Agents experience as a result.
Buyers Advocates Fees
Some buyer’s agents, including Buyers Home Base, charge an "engagement fee" before they begin the
search for a home.
This provides us with a level of protection against, "tyre-kickers". That is people who just want to find out what they could purchase and have no real intention of purchasing a home, house or property. We invest time helping these people and they simply use us to gain knowledge and experience. We don't think this is fair and as such have had to introduce an engagement fee to protect us against this type of person.
Flat Fee Buyers Advocacy
Users of a "full service" Buyers Advocate can typically expect to pay a flat
fee or a percentage of the property purchase price.
Most Buyers Advocates (or Buyers Agents) who charge a percentage, charge anywhere
from 1% to 3% of the purchase price of the home for their services.
We just dont think that this is right. Why should you pay twice as much if the advocate finds a $500,000 property as opposed to a $1,000,000 house, home or property for you. Where is the extra work or value to you? We just do not think there is any justification for Advocates being paid extra for what is effectively the same service. Do you???
We believe that an "ethical" Buyers Advocate will charge a flat fee for their service. Based on our research, the minimum we can find in Melbourne is a flat fee of $7,000 as compared to our flat fee starting at $3,000 ex GST for first home buyers. As far as we know, we are the ONLY Buyers Advocates in Melbourne who are charging a Flat Fee of only $3,000 [plus GST] for First Home Buyers entering the market and purchasing a home or property under $700,000.
Your Melbourne Buyers Advocates, Buyers Home Base, could not substantiate charging more through a percentage based Fee simply because the house costs more. The job of acquiring a $500,000 home is the same job for us, as a $2,000,000 home. We believe that the people who need are services most are First Home Buyers, so we have set our Fees accordingly to allow the services that have only been available to the upper end of the market……are now available and affordable for all purchasers including first home buyers.
Negotiation Service Only
Using a buyer’s agent to just bid on your behalf at an auction or negotiate the private sale of a property, typically has a lower fee as there’s much less time involved. Buyers Home Base also charges a low flat fee for this service.
Contact us now for a FREE consultation
So, if you're looking for a Buyers Advocate or Buyers Agent to help you buy a flat, unit, house, home or property and you are in Melbourne, call us on 1 300 882 842 or complete our online form to request your free consultation!