What is a buyer’s agent and how can you make best use of one when purchasing Gold Coast property?
Ten years ago the idea of finding a buyer’s agent on the Gold Coast was a foreign concept to most people in the property market. It was thought of as a service primarily for home hunters with deep pockets, or wealthy investors looking to add to their property portfolios.
But in recent years, as more people have started to use buyer’s agent and experienced first-hand the benefit of having someone in their corner throughout the property purchasing process, the use of buyer’s agents has become a lot more commonplace both here on the Gold Coast and right across Australia.
But if you’re not yet familiar with the concept of a buyer’s agent, here’s my summary of what is a buyer’s agent, what does a buyer’s agent do, and how can you make best use of one?
What is a Buyer’s Agent?
A buyer’s agent (which you might also hear referred to as a buyer’s advocate) is a licensed real estate professional who works exclusively for you—the buyer. Unlike a selling agent, whose job is to get the best price for the seller, a buyer’s agent is there to represent your best interests throughout the property buying process.
Buyer’s agents handle everything from searching for suitable properties to negotiating the best price and terms on your behalf. They use their in-depth market knowledge and connections to help you find the right property, often gaining access to off and pre-market opportunities that aren’t publicly listed.
The benefits of using a buyer’s agent can include:
- Saving time and effort in your property search.
- Opening up a larger range of properties via off-market and pre-marker opportunities.
- Stronger negotiating tactics through the BA’s negotiation experience, potentially getting you a better price and/or conditions.
- In-depth market knowledge increases confidence in the property purchase and price.
- The BA doesn’t have an emotional attachment to any one property, meaning you won’t be at risk of paying overs.
What Does a Buyer’s Agent Do?
Besides drinking a lot of coffee and spending a lot of time on the phone and in the car? Here are the main services you will find most buyer’s agents will offer:
Search for properties on your behalf
A buyer’s agent takes your property brief — details such as your desired location, house size, budget, reason for move, non-negotiables, and type of property—and uses their own detailed process to search for homes or properties that most closely meet your brief. They have access to a wide range of listings, including off and pre market properties, giving you more options.
The best buyer’s agent is always going to be someone who lives locally – they will know the local area back-to front including the good pockets within an area or history with specific homes. Don’t know the difference between Ashmore or Benowa, or Burleigh Waters vs Mermaid Waters? A good local buyer’s agent will fill in all the gaps.
They will also have relationships with all the local selling agents which can save you a lot of time in your property search.
Market Research and Analysis
Buyer’s agents use their local knowledge of the local market to assess the value of properties on your short list. They’ll provide you with insights into market trends which will help to ensure you are paying the right price for your preferred property.
Property Inspections
Your buyer’s agent can attend property inspections on your behalf, assessing how well the property meets your criteria, and inspecting the quality of the property and identifying areas for negotiation. This is a particularly useful service if you are buying from out of town, or already have a packed family or life agenda that makes property hunting difficult.
Due Diligence
A buyer’s agent will make sure that all the necessary legal and financial checks are completed before an offer is made. This due diligence should be extensive (here at Hemko we have more than 50m items we assess as part of our due diligence process) – it should include items like investigating zoning laws, easements, building approvals, and other potential red flags that could affect the property’s value or future development potential.
Negotiation
Entering negotiations with the selling agent is where a lot of buyers feel the least confident in the property purchasing process, particularly when in multi-offer situations. This is where the best buyer’s agents come into their own. They’re skilled negotiators who take the emotion out of the process and know how to secure the best deal for you—whether that’s a lower purchase price or favourable contract terms.
Auction Representation
If the property you’re interested in is going to auction, a buyer’s agent can help you set your bid strategy and then bid on your behalf, putting you in a strong position to win.
Helping you through the buying and settlement process
Before and after your offer is accepted your buyer’s agent can also help connect you to a range of other industry professionals that they recommend -f rom mortgage brokers and conveyancers to building and pest inspectors.
How to make best use of a buyer’s agent
Think about your goals before you engage
Before engaging a buyer’s agent, try and develop a high level brief of what you’re looking for. This can include information like the type of property you want, your budget, and your preferred location/s. A good buyer’s agent will work then ask you a lot of questions to further refine these goals into a brief, but it’s helpful if you’ve done some high level thinking first about what’s most important to you in your property purchase, and why.
Find the buyer’s agent that’s right for you
There are lots of buyer’s agents around, so do some research and look for the buyer’s agent who specialises in the area/s you’re interested in, and who you think has the best systems and processes to manage the purchasing process effectively. Check their experience, qualifications, and client testimonials. You want someone who knows the local market well, has strong local relationships, is organised and a strong communicator.
Discuss fees and services
Most buyer’s agents will charge either a flat fee or a percentage of the property purchase price. Make sure you understand the agents proposed fee structure before committing. Some agents offer full-service packages, while others like us also offer specific individual services to support you only at specific stages of your purchase.
Communication, communication, communication!
When we speak to buyers who have had experience with other agents, the piece of feedback that most regularly crops up about what they could have done better is ‘communication’. Too often buyers feel left in the dark about what’s happening, feel they are competing for the agents time, or the agent doesn’t use effective methods or platforms to communicate. Your early engagement with the agent should help you decide what kind of communicator they will be, and if they are responsive and reliable. From your side, make sure you regularly update your chosen agent on any changes to your preferences or budget, and ask questions about anything you’re not sure of.
What’s the difference between a Buyer’s Agent and a Real Estate Agent?
Real estate agents are primarily focused on selling properties and representing the seller in real estate transactions. Traditionally, they were the sole intermediaries between the seller and the buyer during negotiations. In contrast, a Buyer’s Agent exclusively represents the buyer. The Buyer’s agent advocates for the buyer throughout the purchasing process—from the initial property search and due diligence, to negotiation and settlement.
You can read more about the difference between a buyer’s agent and a Real Estate agent here.
Got questions about using a buyer’s agent or how a buyer’s agent could assist your Gold Coast property purchase? Book a call with Matt today or email him on [email protected] to have a chat about whether using a buyer’s agent might be right for you.