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While you're probably familiar with real estate agents who represent a seller in a real estate transaction, you may not be so familiar with real estate agents who represent a buyer. Where a prospective buyer engages a real estate agent to help them find and buy a suitable property, these agents may be known as buyer’s agents.
If a person carries on a business or holds themselves out as a real estate agent, they must be a licensed real estate agent. A buyer’s agent acts on your behalf and in your best interests when purchasing a property. Your buyer’s agent may search, evaluate and/or negotiate the purchase of a property on your behalf.
You may also come across terms such as buyer advocates, property finders or property advisors.
Reasons to engage a buyer's agent:
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You don't have time to look for a property and need another party to find a property for you
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You would like an objective third party to act in your best interests by negotiating a deal on a property you have found
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You have limited knowledge of desirable areas or particular features a property should have
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You're not aware of market value
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You don't live in the area
Before appointing a buyer’s agent it is important to evaluate your needs. It is up to you to decide which aspects of buying a property you are willing to take on and which you would like a buyer’s agent to do for you. The number and type of services you appoint an agent to undertake as your buyer’s agent will determine the fees you pay.
A buyer’s agent may offer you the following services:
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Conduct research in order to prepare a list of properties that fit your criteria and arrange for you to view them
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Advise on the merits of individual properties
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Discuss market values
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Bid for you at auction
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Conduct enquiries and searches with relevant authorities to determine if any issues affect the use and enjoyment of the property
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Engage in negotiation on your behalf
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Assist with the wording of special conditions in offer and acceptance contracts
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Explain the terms and conditions in the seller’s contract and advise if they are in your best interests (a buyer’s agent cannot provide you with legal advice)
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Arrange building and pest inspections and other services
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Monitor the settlement process
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Liaise with selling agents
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Contractors and settlement agents
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Oversee final inspections
If you are an investor, you may also need advice about other matters, such as the desired rent, whether the property will attract tenants, and any capital expenses or repairs that will need to carried out in order to attract tenants at the desired rent. It is important to note that under the Corporations Act 2001 the buyer’s agent cannot provide you with financial advice unless they hold an Australian Financial Services licence.
An advantage of using a buyer’s agent to negotiate on your behalf is that you do not have to deal directly with the seller’s agent if you don’t want to, thereby reducing the likelihood of direct pressure sales tactics that may be used by the selling agent.
Relationship between buyer, seller and agents
CHOOSING A BUYER'S AGENT
A person decides that they would like to buy a property (the buyer). The buyer appoints a buyer’s agent (a licensed real estate agent) to help them find a property and to represent them during the buying process.
FINDING A PROPERTY
The buyer’s agent prepares list of suitable property and organises viewings for the buyer.
CHOOSING A LISTING AGENT
A property owner or seller decides to sell their property (may be referred to as the vendor). They appoint a listing agent (a licensed real estate agent) to represent their interests in selling their property.
SELLING A PROPERTY
The listing agent arranges advertising, property viewings and home opens for the seller.
OFFER & ACCEPTANCE
The buyer’s agent liaises directly with the listing agent or private seller on behalf of the buyer. They can:
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Assist with the wording of special conditions in the Offer and Acceptance
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Arrange building and pest inspections
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Negotiate the sales price for the buyer
The listing agent (on behalf of the seller) or the private seller liaises directly with the buyer’s agent. They can:
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Assist with the wording of special conditions in the Offer and Acceptance
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Arrange building and pest inspections
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Negotiate the sales price for the seller.
SETTLEMENT
The buyer’s agent monitors the settlement process and the transfer of the title deeds into the buyer’s name.
The listing agent monitors the settlement process and the transfer of the title from the seller’s name to the buyer’s name.
NEW OWNER
FAQ's
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