Do people recommend buying agents when purchasing a property? Any good or bad experiences out there and what do they typically charge?
Thanks for your replies…
Hi propertymistro, standard buyers advocate fee is 2% + GST in Melbourne and this can vary greatly. The benefits of using one are;
– they will inspect 50 – 60 properties and shortlist to a few that are actually worth your budget
– provide considered advice on where your money is best spend ie. which suburbs, what sort of proeprty, for what use etc
– bid at auctions and negotiate with re agents for you – no re agents trying to pull the wool over your eyes or playing on emotions to get more money for their vendors
– buyers advocates are skilled negotiators and can often get you a lower price than what you would otherwise pay
– access to 'silent' listings that often are sold before they are advertised.I personally wouldn't use one but I have the time to look for proeprties myself. If you are too busy to do the legwork, then I think it is definitely worth it!
Thanks rachelthelegend for the great reply….
rachelthelegend wrote:buyers advocate fee is 2% + GSTI find it confusing that they take a 2% fee….how is that incentive to get a lower price for you?
As already mentioned, if you are time poor, and the market is quite 'hot' it can be a good idea. But not one of the ones that carries on about 'project management' and 'finding cashflow + properties' etc etc. Always good to get one that specializes in the area you are looking at buying in too. Some charge a flat fee which is a bit fairer. Again, it depends where you are buying. For example, in parts of Melbourne they wont save you any where near the money that you pay them on the price – just your time & convenience – and what's wrong with that if your circumstance dictate?
Cheers
dtrump wrote:I find it confusing that they take a 2% fee….how is that incentive to get a lower price for you?It is not regulated – just like the REA selling – it is whatever the BA and you can agree on. Some charge a fixed fee – which I think is better. Some charge a % of the purchase price. Some charge a % of the saving they get you off list price. As a guide you might expect to pay 2% or less of the purchase price but really I prefer a fixed fee, otherwise there is no incentive to get the price as low as possible.
Hi There,
Buyers agents charge a fee, whether fixed or a percentage of the purchase price, with the deciding factors usually being what type of property you are looking for, in which area/s, and the value. There is also usually a sign on fee which needs to be paid, and is deducted from any fee for the succssful purchase of a property.
A good buyers agent will know the market in the area you are interested in, and has the time to do all the legwork for you, which can be very time consuming. Working full time in any industry or job gives you knowledge and experience cannot be fully replicated by people dipping in and out on an occasional basis.
The cost of any service should be looked at with the bigger picture in mind, and that buying the right property for a fair price is vitally important in setting up any future gains.
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