When saving for a property, many of us would rather put every penny towards the new purchase than spend it on enlisting the services of a buyer’s agent. But is it worth it in the long run – how much can you realistically save when asking for a helping hand? We crunched the numbers so you don’t have to.
Benefits outweigh the cost
Apart from saving time otherwise lost visiting unsuitable properties and minimising stress or the chances of getting swept up in the emotions of bidding for a house out of your budget, buyer’s agents offer additional benefits throughout the purchasing journey.
Otherwise known as a buyer’s advocate, licensed buyer’s agents have insider knowledge to cull the selection process as they have full reign to a wider net of properties on the market, including exclusive access to properties not often known to the general public. And, perhaps most attractively, they can sometimes secure your dream property at a much lower purchase price than without an agent by your side.
The role of a buyer’s agent can be likened to the profession of a dentist. Most people would buy a house as often as they have a tooth extracted – if they wouldn’t trust themselves to do the job, why would they attempt such a specialised task themselves when they can have an expert step in?
An agent’s fees deconstructed
Given a buyer’s agent deals with property day in day out, the cost of forking out for their commission can be invaluable when you consider the savings on your dream property. And, because buyer’s agents are in the opposite position to a seller’s agent – what we typically think of when imagining a real estate agent – they level the playing field, making negotiations easier for less seasoned buyers and investors.
In Australia, buyer’s agents’ fees range from 1.5-3% plus GST of your property’s purchase price. For investors, some buyer’s agents’ fees have tax deduction benefits. Their fees may also include a registration fee, so having an idea in mind of a specific property you’re after will cut down the costs and ensure you won’t be shown options that just don’t suit, meaning neither party is left frustrated, time or money poor.
A buyer’s agent’s fees typically include access to a wide net of property databases, all communications and meetings with you, meetings with real estate agents, communication between your elected financial specialists and referrals to engage with other property, finance or legal consultants, various inspections, strategies and negotiations for purchasing your desired property and contract checks.
So are you going to take the plunge today and enlist the help of a seasoned pro? For more information on property in your local area, visit the Brisbane property specialists at Madeleine Hicks Real Estate, or call 07 3355 6845 now.