Finding the ideal property takes a long time, particularly if you are situated outside of Australia or are unfamiliar with a certain region. Even if they had all the time in the world, a buyer without expert counsel will have difficulty knowing whether they have purchased the correct property and not lost out on a better option. Economic instability and pandemic fears are leading prices to be confused and erratic in the housing market, particularly in Australia. A buyers agency may get a sense of relative worth by giving comparisons. When purchasing a home, having access to this due diligence is critical. They’ll utilize this knowledge to better understand the selling agency’s intentions and discover solutions in their talks. A buyer who is represented by a respected buyers agency will be treated with much more respect than someone who is not.
Buying agents varies in size from one-man or one-woman bands acting independently to enormous corporations owned by well-known estate firms but functioning independently. Some buyers agents also operate as real estate brokers, buying and selling homes. We exclusively acquire property for customers at Prime Purchase, so the lines aren’t muddled. We are owned by Savills, one of the most well-known real estate firms in the world, but we are completely independent and have no vested interest in selling houses.
Many of the smaller agencies help their customers purchase and sell homes. They will be compensated on both sides. Using a buyers agency that exclusively buys houses like ours has a lot of advantages. To ensure that they are the first to learn about new properties, a buyers agency must have great connections with selling agents. Removing the element of rivalry that comes with selling homes aids in the development of these connections.
So, who should think about hiring a buyers agency?
A buyers agency should be considered by everyone who is serious about buying or renting a home and wants to prevent potentially costly blunders. Given the present economic scenario, hiring a buyers agency is more vital than ever. Before presenting any of the homes to customers, an agency would typically examine 20 to 60 listings. That way, they’ll only see the finest of what’s available. A buyer may easily squander time if they do not use a buyers agency. It’s our responsibility to weed out any homes that aren’t worth the money.
We’ve purchased many residences for various customers since the outbreak began, all via virtual viewings. The customers didn’t visit the homes in person and relied on us to complete our due diligence. We visited the premises and found that this, along with live FaceTime walkthroughs, was adequate. An estate buyers agency is unlikely to do this, and even if they did, it would not be in their best interests to bring out the flaws to you.
We spend almost as much time persuading customers out of purchasing a home as we do pointing out the benefits. A buyers agency may make your life considerably simpler whether you’re moving inside Australia, out of Australia, or to England from another country. Buying agents are sometimes misunderstood as being solely for the upper echelon of the market, but this is not the case. Because many properties are not listed ‘for sale’ on the open market, Covid has made the purchase process more difficult in terms of gaining access to them and even locating them in the first place. Many of the early viewings of a home will be done by a buyers agency before the buyer, reducing the amount of places you need to trudge over by removing any inappropriate ones. We are kept informed by estate agents about homes that are coming up for sale that may be of interest to our purchasers.
Is there a role for buyers agents in the bargaining process?
Negotiation is an important element of the buyers agency’s job, mostly because we have the benefit of being objective and unattached to the transaction. It also comes down to skill — after years of selling and buying real estate, we’ve figured out the best method to close transactions. We also know how much you should spend for a certain home. We also have access to information of previous sales, which give comparable evidence that we may use to support or challenge the bid we submit on our customers’ behalf. We hold ‘off the record’ talks with the sales agents to determine the seller’s actual stance, which we utilize to steer our bargaining technique, along with our many years of expertise.
Can they assist with mortgage brokers, surveyors, attorneys, and other professionals?
Aside from a buyers agency, you’ll need a team of pros to help you with your search. A buyers agency will introduce you to and organize all of these professionals, as well as ensuring that you are taken care of by a network of carefully chosen trustworthy advisers. We also spend a lot of time talking with our clients on schools, since they are often a factor in determining where a house should be located. We can connect our customers with a variety of educational professionals that can advise them on the finest schools for their children’s requirements.
How much will it set you back?
An initial retainer and a final fee will be charged by a buyers agency if the transaction is successful. While it is an extra expense to an already costly purchase, a skilled buyers agency may frequently save you more money in the bargaining process than their charge. Colombo Hirst charges a £2,500 retainer and a success fee of around 2% of the acquisition price. Clients, on the whole, prefer to agree on a fixed charge up front. Similarly, our duty is to negotiate the best possible purchase price for our customers, and by eliminating the % fee structure, we eliminate any question in their minds that we are simply looking out for their best interests. Our fee covers the labor we do, and we intend to recover it via the quality of the property we acquire and the price we can get for the buyer. The first retainer is in place to guarantee that our customers are committed to the search and to prevent them from us taking on another comparable search.
Fees vary greatly based on the kind of search, its intricacy, and the amount of time it takes. We charge a one-time registration fee, followed by a percentage of the purchase price during contract exchange. There are no unpleasant shocks since everything is discussed in advance. Some consumers may see a buying agency as an added fee to the already high cost of purchasing a home. If you were planning to invest £2 million in the stock market, however, you would seek expert advice. This isn’t any different.
So, how does it operate, and what should you look for in a real estate agency?
It’s critical to deal with a buyers agency you like and get along with. Colombo Hirst does not collect a retainer unless the buyer is certain they want to proceed. Before any money changes hands, we often meet with our customers for initial consultations and have multiple interactions with them and their families.
“A prospective client’s initial meeting with me is always free.” Money does not move hands until the conditions have been agreed upon and the registration price has been paid. When picking a buyers agency, look for someone you can connect to, preferably someone who has made the journey themselves (for example, from Australia to the nation), knows the region like the back of their hand, and understands any educational requirements you may have. Don’t forget to ask them a lot of questions.
Is there anything that buyers agents aren’t in charge of?
Every part of the acquisition will be handled by a buyers agency. They will outsource aspects of the process such as the survey, conveyancing, and mortgage, but will play a key part in organizing all of these at the right moment. “There are a few things that buyers agents don’t handle, but the primary ones are official appraisals and surveys,” says the author.
Can you employ a buyers agency if you’re only searching for a place to rent?
Some buyers agents also handle rentals, but if that’s what you’re looking for, make sure you select one with a proven track record of locating rental property. Some agencies specialize on lettings solely.