What is a buyer’s agent?
A buyer’s agent is a real estate agent who works exclusively for a property buyer, not the seller. A buyer’s agent looks for, evaluates and recommends properties for their customers, and also negotiates during the purchase transaction or bids at auction on their behalf. Because of their role in looking after their customers’ needs, buyers’ agents are often also known as buyers’ advocates.
When do buyers need a buyer’s agent?
Buyers may decide to work with a buyer’s agent when they are inexperienced in the property market, perhaps when looking to buy their first home or moving to a new area. They may be unable or unwilling to spend time house-hunting when adding to an investment portfolio, finding a new family home or downsizing. Or they may simply want to bring in an expert, to find the best possible property for them, at the best possible price.
What does a buyer’s agent do?
Each buyer’s agent will have a slightly different process, but they will all work through similar stages with their buyers.
1. Consult with the customer cert
The first stage of working with a buyer’s agent is the consultation, when the agent will talk to their customer about the sort of property they are looking for. The agent will need an in-depth understanding of the customer’s needs to be able to move on to the next stage. They will ask questions about the customer’s objectives, budget and lifestyle, the area they want to buy into, and important features of the property. For investors, capital growth and rental yield will be important. They might ask about how many bedrooms they need and what local services they need to be close to. This information will all be documented, and the agent will use it to plan a strategy for finding properties that meet the customer’s needs.
2. Property search
Using their knowledge of the industry and local area, the buyer’s agent will then start to look for properties that are the best fit. This is when a buyer’s agent can save the customer a great deal of time, as buyers will only need to view properties that have been pre-vetted by their buyer’s agent. Expert buyer’s agents will locate properties that their customers are unlikely to have found by themselves. Most buyer’s agents will give their customers a shortlist of recommended properties. When houses are selling quickly, many will notify their customers as soon as a matching property becomes available, even before the property is advertised in some cases.
3. Negotiating best price and terms
When the buyer’s agent has found the buyer the property of their dreams, they will help them close the deal. Buyer’s agents will negotiate with the seller’s agents aiming to secure the best price and terms for the buyer. This is where they will help to even up the balance of power in the property sale transaction, ensuring the buyer has professional representation as well as the seller. If the property goes to auction, they represent their customer and use their experience in the process to get the best possible price, able to bid without the personal emotions that can cloud judgement when customers are bidding for their own homes.
How is a buyer’s agent different from a real estate agent?
A buyer’s agent is an independent advocate who works only for the buyer, whereas traditional real estate agents work on commission for the seller.
Is it worth using a buyer’s agent?
The decision on whether to use a buyer’s agent or not depends on how much experience in real estate you have. Most people do not buy and sell property very often so it can help to have someone on your side who is an expert in all the aspects of finding and purchasing that ideal property.
One of the top benefits of working with a buyers’ agent is that they can save you time, only showing you properties that they are confident can meet your needs. Having that expert oversight when you are looking at a new property can considerably reduce the stress involved in the purchase. Their market experience and expert negotiation skills can save you money. They are experts at bidding at auction, a process that intimidates many inexperienced buyers. With contacts in the real estate world, they may be able to show you homes that have not been advertised to the public yet. They may also find options that can suit you perfectly but in areas that you may not even have thought of. The seller has an expert agent on their side, shouldn’t the buyer too?
How do you become a buyer’s agent?