Beyond buyer agent and buyer advocate
Your Melbourne property investment adviser
A buyer’s agent should understand your needs (whether it is home buying or investment) and the goings on in the market. They use this information to source the right property; and then negotiate for that property, be it via an auction or through a private sale.
Hiring a buyer’s agent is about getting the right property. Right in terms of meeting the criteria and at the right price – as cheaply as possible. But it is not really about a bargain hunter mentality. Good quality property will invariably come at a price. You want to pay a fair price and not over-pay.
In the case of investors, this is about finding property with a track record and propensity for capital growth. The buyer’s agent also helps select the property manager and set the rent.
The fee tends to be based on a couple of factors, most importantly whether there are some parts of the property identification and acquisition process that you undertake yourself.
Don't try to get the cheapest buyer's agent you can find. You would not appoint the estate agent that gives you the lowest quote. Their attention, commitment and willingness to spend time to negotiate is in direct proportion to how they're being paid.
If a buyer’s agent is charging a low fee, there is a high likelihood that they depend on a high turnover rate. They will be more interested in closing the deal and moving onto the next one as opposed to maximising their client’s interests.
Buyer’s agents should be independent of financial advisors and developers but that does not mean all of them are. If a buyer’s agent appears to have interests outside of your own, walk away.
Ask them how they are remunerated? Fees should be paid by you. If fees are paid from other sources the advice they give you may not be impartial.