If you are starting the search for a new home, or perhaps your first home, you may be wondering “Do I need a buyer’s agent?”
Buying a property can be a daunting prospect. In such a booming market, it’s easy to get swept away by rising costs and confusing terminology. Enter the buyer’s agent. Buyer’s agents advocate on behalf of you, the buyer, to look after your interests when searching for a home. There’s no doubt about it – having a person dedicated to your interests in the market is an attractive prospect. However, not everyone will require the assistance of a buyer’s agent. This article will outline what exactly a buyer’s agent does, who might need a buyer’s agent in Newcastle, and how it could be an excellent investment that saves you money in the long run.
Why Do I Need a Buyer’s Agent?
Buyer’s agents are common in major cities of Australia and are rising in popularity across coveted residential areas outside of cities. A buyer’s agent is not essential to buying a property, but they provide a prospective home buyer with significant benefits. The counsel a buyer’s agent can provide is often necessary to ensure you don’t overpay for a property and secure a great deal.
Whether or not you need a buyer’s agent comes down to how much you value professional insight, extensive local connections and reducing your stress levels. Having a professional’s set of eyes, ears, and hands is advantageous in any scenario, so why limit yourself when it comes to what is most likely the most significant investment of your life?
What Does a Buyer’s Agent Do?
Generally, a buyer’s agent will offer two types of services for clients.
1. Full Service
The full service utilises the agent to seek out properties that meet the client’s briefs. This includes shortlisting properties and using local connections to find houses off the market. Following this, the agent will assist the client in appraising and negotiating the purchase of the home. The full service can be utilised for one specific property or as part of a new portfolio of residences.
2. Auction Bidding
If customers are satisfied with their ability to find and shortlist properties, they might enlist a buyer’s agent solely to bid on their behalf at auctions. A buyer’s agent completing a proxy bid removes the emotional attachment to a property and allows the customers to operate within a stricter budget and avoid overpaying.
How Much Does a Buyer’s Agent Cost?
For many, the cost is the most significant concern in determining the answer to, “do I need a buyer’s agent?”. What can seem like an unnecessary cost may end up saving you more money in the future. The total cost of a buyer’s agent varies from agency to agency. The industry average in busy metropolitan areas like Sydney ranges between 2% and 3% of the purchase price.
Some buyer’s agents charge a flat engagement fee before they begin searching for a property. A full service from a buyer’s agent will either be charged as a flat fee or as a percentage of the property purchase price.
Using a buyer’s agent strictly to bid at auction will carry a lower fee, as less time is involved. Potential investors may find the cost of a buyer’s agent is typically tax-deductible in the purchase of an investment property.
Chad Dunn’s professional auction bidding service begins at $750. From there, the appraisal and negotiation services start at $10,000 and involve your agent, evaluating, securing, and negotiating properties that you find. Or for the full service –starting at $15,000, which lets the team utilise their years of experience in the real estate market to help shape the scope for the brief of your home, find the best properties that fit within those parameters, concluding with us negotiating and finalising the best deal.
Do I Need a Buyer’s Agent to Buy a House?
As mentioned previously, you do not need to enlist a buyer’s agent to buy a house. However, there are many benefits to having a buyer’s agent on your team. Some of the main reasons prospective buyers engage with a buyer’s agent include:
1. Early Access to Properties
Buyer’s agents have their ear to the ground regarding who is selling a property and where. The best agents have access to a wide array of properties on the market, some not even publicly listed. Any prospective home buyer cannot underestimate the connections of a buyer’s agent.
2. Investment Guidance
Buyer’s agents who specialise in investment properties can assist in finding the best type of properties in areas with strong potential for capital growth. Buyer’s agents are aware of how the market works and can prevent you from making misguided investment decisions.
3. Less Stressful
The administration of buying a property is laborious work. Entrusting the management of the critical aspects of buying a house to a professional can save you the headache down the line. Engaging a buyer’s agent will mean you have someone on your side who will only contact you when necessary and help you to focus on the essentials.
4. Saves Time
A professional sifting through properties to find a shortlist of ones that meet your brief will save you time. Your buyer’s agent will only show you houses that meet your desires—allowing you to focus your free time on attending inspections for properties that meet your criteria.
5. Remove the Emotion from Bidding or Auction
Bidding on a property can be an overwhelming experience. Having an impartial voice of reason can prevent you from making overzealous decisions in the heat of the moment. There is a process to bidding effectively, and your agent will ensure you only pay what a property is worth.
On the Fence?
If you’re still on the fence and are still wondering “do I need a buyer’s agent?”, Contact Chad Dunn to har your options and discuss how a buyer’s agent may or may not fit your requirements. Chad Dunn and his team have years of experience tracking down the best deals for prospective home buyers across Sydney and Newcastle. Passionate, genuine, and personable, Chad Dunn delivers a premium buying service without the hassle. Let Chad Dunn guide your stress-free buying experience today – we operate across Newcastle, Lake Macquarie, Port Stephens & the Hunter Region.