Perhaps you’re about to embark on your search for your dream property. That may be your first home, or perhaps you’re upsizing to something a little larger, or downsizing to something a little more manageable and maintenance free.
Or perhaps you’d just like to get that edge to find your high performing investment property.
In any case it doesn’t take long to realise that buying property in the desirable, sought after suburbs of Sydney is no easy feat, and highly competitive. It’s a task that can certainly be performed much better with an experienced buyer’s agent on your side, but what about the costs?
Buyer’s agents are expensive… aren’t they?
Before assessing how much a buyer’s agent costs it is important to understand what a buyer’s agent is and what services buyer’s agents offer. Not all agents are the same.
You need to ensure your Buyer’s Agent Eastern Suburbs is working for you, with no other interests, no hidden agendas, and they are the best qualified person to service your needs.
So What is a Buyer’s Agent Exactly?
A buyer’s agent is a real estate agent, professionally qualified and fully licensed to operate in the state you are property searching in. This is important- real estate is a regulated industry covered by substantial legislation. All parties must know and play by the rules to ensure a transaction goes smoothly and is not jeopardized along the way. A buyer’s agent differs from a sales agent (commonly just called a “real estate agent”) in that they are hired by you, and paid only by you to represent your interests to find and purchase your property. Make no mistake- they should have no affiliation with a real estate agency. They should be taking zero fees or commissions from anyone else, only accepting the fee you have negotiated with them.
They are there to understand what you want, and to fully devote themselves to find that for you.
A buyer’s agent may also go by the title “buyer’s advocate”. This is particularly the case in Victoria (they always like to do things differently down there). Or they may call themselves a buyer’s advisor. Whatever the name, ensure they don’t work for a business selling property, especially new homes, house and land packages, off the plan apartments, or the like.
What services do buyer’s agents offer?
Some buyer’s agents focus more specifically on investors and will, in addition to finding a suitable high performing investment for you, also conduct the pre-purchase analysis. That means crunching the numbers for the purchase of the property, including your individual earning and tax liability circumstance to ensure the deal stacks up for you and will deliver you the financial results you require. Some of these investment focused buyer’s agents may even offer to assist you to develop a strategy to purchase multiple properties over a long timeline. Although a word to the wise – some of these types of proclaimed buyers agents do have ulterior motives.
Other buyer’s agents focus on owner-occupiers looking to secure their dream home- whether that’s a first home, larger home, or downsizing to something comfortable in one’s later years. Whilst this type of buyer’s agent is less focused on the “numbers” of the deal, they may be very adept at sourcing and negotiating ‘dream homes’ – properties with a view, an ideal aspect, unique liveability features, proximity to desirable landmarks (a golf course or hip restaurants) or on a fashionable street.
Whether you are in need of an investment or a dream home, the essential services offered by a competent buyer’s agent should be the same and can include any, or all, of the following:
- Understand, and write out a detailed brief covering exactly what you wish to purchase, then propose a strategy for how they will seduce that for you
- Search and find a shortlist of suitable properties that match your brief
- Appraise- ensure the any property shortlisted and presented for your consideration meets your criteria…whatever they may be
- Negotiate- fight hard on your behalf to get the best possible price to secure the property. This may be via a private treaty, in a pre auction negotiation, or at auction.
Perhaps you have already found something you love and just need an expert to appraise and negotiate. A great buyer’s agent can take care of that for you too.
How not to overpay when buying real estate in the Eastern Suburbs
Unless you are a regular property buyer and seller in Sydney’s Eastern suburbs to avoid overpaying we highly recommend you use the services of a professional like Unicorn Buyer’s Agents to negotiate your purchase for you. Why?
- We know the market on a suburb by suburb basis.
- We are continually doing our research
- We talk with local agents all day every day.
- We know the real value of what you’re trying to buy and we know how to purchase at that price. Not the hyper inflated prices every ruthless selling agent will try and squeeze from unsuspecting inexperienced buyers.
So what does it actually cost to hire a buyer’s agent in the Eastern suburbs of Sydney?
When if comes to price different buyer’s agents have a different fee structure. Some charge a commission, similar to a sales agent of between 1.5-2.5% of the purchase price. Others charge a flat fee, and that may be scaled depending on the purchase price. Common prices quoted are $8000 to $12000 for a purchase up to $1m and increasing thereafter.
It’s not unusual for all agents to modify their quoted price depending on the difficulty of the job at hand. For example if you wish to purchase a specific type of property in tight supply and in a limited geographical area at a competitive price point, then you can expect to be quoted more for this contract. In this example, here at Unicorn we’ll factor in an extensive additional amount of time devoted to door knocking, letterbox dropping and community outreach. Whatever the amount quoted, the agent and should be able to explain to you exactly what service is covered, and this should be reflected in the agency agreement you sign. There should also be transparency around how long the agreement lasts, and realistically how long the agent will take to find your property. Then armed with all the info the onus is on you to decide,- will the agent you choose get the best result for your requirements, and what will the return be on your investment?
We are happy to talk about our fees. We understand no two property searches are the same so at Unicorn Buyer’s Agents our fees can be tailored to your particular requirements. To find out more about Unicorn Buyer’s Agents fees, and to request a fee schedule, please contact us [email protected]