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How do I choose a buyer's agent when buying property in Australia?


Part 1 Content of the work of the buyer's agent


  • What is a buyer's agent?

The Australian property investment process is complex and it is important to choose a reliable buyer's agent, who is a licensed professional who specializes in finding and evaluating properties and negotiating purchase prices for buyers.. Unlike a real estate agent who represents the seller, a buyer's agent represents only the buyer. They are independent and represent only the buyer's interests.


  • What does buyer's agent do?

1. Full service
The buyer's agent will take care of all the nitty-gritty of the purchase, including lot research, viewings and negotiations with the sales agent. Once a suitable property is found, the buyer's agent will inform the buyer and then take care of all negotiations until the final transaction is completed.

2. Bidding
Buyers can also search for a property on their own and then hire a buyer's agent to bid on the property for them at the auction.


  • How much does the buyer's agent charge?

Some buyer's agents charge a retainer fee before they start looking for a property. Buyers opting for the full service option will be charged a flat fee or a percentage of the purchase price, usually 1.5% to 2%. A buyer's agent fee of $9,000 - $12,000 would be required for a $600,000 property. Hiring a buyer's agent to bid at an auction is relatively inexpensive as it requires less time to work on the property. If the Australian property to be purchased is to be used for investment purposes, the fee may be tax-deductible.


Part 2 Why should I hire a buyer's agent?


1. Fast access to a large number of properties
Some buyer's agents have a large number of listings that are much more extensive than you would have access to on your own, and some of these homes are not even advertised.

2. Saving time
Hiring a professional agent to find a property that meets your requirements can save you time, effort, and stress.

3. Investment Tips
A professional buyer's agent engaged in an investment property can help you find the right type of property in a location with good capital growth potential.
They understand the direction of the market and will bring you the best options based on their experience in addition to meeting your basic requirements.

4. Bidding and Bargaining
One of the reasons buyer's agents are popular is their ability to help buyers when bidding and bargaining.
Buyer's agents are well versed in the entire process, including the mechanics of the deal and the confidence, stability and approach needed to win an auction.


Part 3 How to choose a buyer's agent?


1. Collect information
Search for agents with cooperation, there are a lot of strong agents on the market to choose from, choose a few you think appropriate, and then learn more about their experience and background.

2. Local agents
The agent will be representing you and your property, so he/she needs to have a clear understanding of the local market, other properties for sale, recent transactions, etc. . Other properties are likely to be your competition, and knowing your competition lets you know what issues you will face. Knowing agents in the local market can help you evaluate your property and others like it.

3. In-Person Interviews
The way to get to know the agent is to go to an open house where you can unannouncedly observe the agent at work.

  • The agent's communication and interaction with potential buyers. Is their communication approach suitable for you?
  • Their behavior and attitude at the open house. Did they stand at the door to welcome potential buyers? Have they been proactive in describing the features of the property? Were they able to answer all questions about the property?
  • Did the agent follow up on any inquiries made after the viewing? Did you expect the agent to follow up on your inquiry?
  • Were they punctual?
  • Were the agent's property advertisements and marketing plans appropriate?

4. Getting along well
Do you get along well with the agent? You have to be honest with your agent during the selling process, so you need an agent you can get along with and maintain open and honest communication.

5. Check transaction records
Check the agent's sales history, especially his or her recent transactions. Look up facts such as selling price, time of launch in the market, etc.

6. Market knowledge
A good agent will be able to provide you with market information for the area and surrounding areas, with adequate knowledge of the local area, public transportation, population, and types of buyers.

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