Why Hire A Buyers Agent?
With the high cost of getting into the property market why would a buyer consider spending more by adding a buyer’s agent to the cost? In other words, are buyer’s agents worth there fee?
A typical selling campaign can take up to a month from when you first see a property till auction day. If you lose the auction your back to square one. Most buyers don’t consider how many times this process can be repeated with no result. Consider the below example on some of the complexity buyers face:
It can take 3 or 4 auctions to understand how real estate agents operate with underquoting and surprise negotiations. It’s common for a property to be sold without potential buyers being notified and final sale prices hundreds of thousands of dollars above the advertised price.
With each auction buyers conduct their own due diligence hiring building and pest inspectors and conveyancers. Several failed auctions can rack up a financial loss of thousands of dollars with nothing to show for it.
Then there’s finding the right property and beating other buyers to the finish line. A good quality listing can attract many different buyers that are willing to pay more than market value to secure it.
Most buyers have restricted purchasing capability set by their finance organisation. Hence buyers that are less reliant on finance have the power to pay slightly more than market value for property out muscling the competition.
The average buyer can take up to 6 months to purchase. The learning curb is difficult, and many buyers quit and leave the task for a future date, in other words put it into the too hard basket.
The problem with taking 6 months to purchase is you can get priced out of the suburb you want to buy in. A great example of the market moving aggressively, if you purchased a property in West Footscray in the December quarter in 2021 there was a Quartey increase of 25.5% in median house price (SEP 21 $943,000 to DEC 21 $1,184,250).
Many buyers would take months to realise they have been priced out of a suburb and then needing to reset there buying criteria, this brings a new learning curb slowing down the buying process. It’s allot like taking one step forward and two steps back.
How can a buyer’s agent help this situation?
Buyer’s agents are experienced real estate agents that look out for the best interest of their client. Just like a real estate agent does what is best for the seller a buyer’s agent uses their skills to favour the property buyer. Some would say a buyer’s advocate brings balance to the buying and selling process.
Saving buyers money by speeding up the buying process.
The advantage of hiring a full-time property buyer can minimise how long it takes to purchase saving buyers tens of thousands of dollars.
How do they do it? Understanding their client’s budget and buying needs then sourcing the right property on and off market. Through this process a buyer’s agent educates their clients with market knowledge teaching them how it’s done. It’s a fast-paced process that in many cases a buyer’s agent can purchase their clients a property in the first auction.
When prices are moving up it’s important to purchase quickly as time really is money.
If you’re stuck in the whirl wind of buying, there are many skilled buyer’s agents in Melbourne that can step in and offer wise real estate advice. The tangible and intangible value a buyer’s agent can provide far out ways their fees and, in most cases, help you purchase a better property in a better suburb.