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Buying a house in Melbourne is a wise decision that will put you among the elite in the region. According to data, in 2021, 64% of households fully owned or purchased their homes, while 26.8% rented privately.
Buying a house in Melbourne can fit both private and commercial purposes. Adequate amenities surround the region to sustain a family with great access to education, job opportunities, and entertainment.
Given the many people seeking ownership, you also have a great chance of reselling your home if you wish to relocate.
So, how do you approach the market as a buyer? The wisest bet is to use a buyer’s agent. Like any other real estate market, Melbourne has challenges that only an experienced buyer’s agent will know and be able to navigate.
Read on and learn who a buyer’s agent is, how they can be of help, and how the right one, such as Amassed, will make your property buying experience in Melbourne pleasant.
A buyer’s agent is a licensed professional who specialises in searching, scoping out and evaluating, and negotiating or bidding at an auction for a property on behalf of the buyer. Also called a buyer’s advocate, a buyer’s agent is legally bound to represent the buyer’s interests in the sale of a house or property.
This is different from the responsibilities and scope of a seller’s agent or typical real estate agent. Seller’s agents are bound legally and by contract to represent the seller’s best interests. Therefore, they aim to get the most money out of a sale.
Since you’ll often find yourself at the negotiation table with a seller’s agent whose savvier about the market than you are, it is wiser to contract the services of a buyer’s agent.
Clients for buyer’s agents range from time-poor house hunters to first-time home buyers and property investors investing in an unfamiliar area.
A buyers agent covers several key responsibilities apart from searching and negotiating the purchase of a property. Taking cues from how a company such as Amassed approaches its relationship with clients using the Amassed System, these roles include:
The buyers agent should take the time to understand what you’re looking for and why you’re interested in it. Knowing your requirements, the agent can help you discover new areas that fit your budget and needs better or suggest a different type of property than you’d initially planned.
For instance, Amassed, in their Amassed System, break down this phase into the “Assess” and “Modify” stages, where they get to know why and what you’re looking for and draft a wealth creation journey or strategy for you.
Buying agents are experts in the local real estate market. Therefore, they can answer any question about the market and properties in the area to help you decide which properties or locations you should buy or invest in.
This makes it easier for you to buy property in an unfamiliar location.
Taking the example of the Amassed System, Amassed fulfills this responsibility to the buyer in the “Address” stage, where the buyer can ask any questions they have and raise any concerns, which the team will answer before embarking on the property search.
The buyer’s agent searches the market for a property that fits your needs, requirements, and wealth creation journey.
Amassed, for instance, seeks off-market opportunities during this “Search” phase since such properties offer the best value for buyers. The buyer’s agent will use their networks within the industry, such as other real estate agents, to access these off-market properties before they go to the public market and hike prices.
Due diligence is crucial in any real estate market. The buyer’s agent’s job is to ensure the property you’re interested in is in the same state as advertised.
Moreover, researching the property allows the buyer’s agent to evaluate the proper value of the property before committing to negotiations. Researching the seller helps assess their situation and establish the kind of offers they may be willing to accept.
In the Amassed System, Amassed fulfills this responsibility in the “Select” and “Enquire” stages. They use the AMASSED Checklist to ensure the property has all the characteristics of a rare investment and enquire about it to ensure no unmentioned damages.
The buyer’s agent will also recommend and schedule a building and pest inspection to ensure the property is in the advertised condition.
The most critical stage of buying a house or property is negotiation. You’ll often be on the table with the seller and their agent, who want to wrest extra money out of your pocket.
Based on their evaluation of the property and negotiation expertise, a buyer’s agent will muscle back a few dollars into your pocket and give you the best price for the property.
In the Amassed System from Amassed, this is the “Decision” stage, where a professional negotiator handles the negotiation and oversees the purchasing of the property.
The buyer’s agent will also ensure that all the necessary paperwork is available and well-filed for a seamless ownership transition between the seller and the buyer.
You can purchase a house or property without the services of a buyers agent. This leaves the full load and responsibility of searching for the property, researching it, and negotiating the purchase price on you.
You must have enough information to know what may affect the property and negotiate the price according to the terms and conditions in the sales contract.
In most cases, the seller will have a real estate agent or seller’s agent representing them in the negotiations. You will negotiate directly with the agent, whose primary objective is representing the seller’s best interests and not you, the buyer.
You’ll negotiate privately with the owner if you land a private sale.
You’ll also be responsible for monitoring the settlement process with the seller’s agent after agreeing on a deal.
If you’re time-constrained or don’t know which properties to search for, you can seek the services of a property finder who’ll only help you gather a list of properties that meet your criteria or requirements.
For the property finder to perform any other duties, they must be licensed or registered under the REBA Act. Therefore, only a property finder licensed or registered under the REBA Act can negotiate the purchase of the property, hold deposits, or convey counteroffers.
Buyer’s agents offer a set of services to their clients that cover the full scope and duties of purchasing property within Australia or an Australian territory. If you don’t want to pay for the full services, you can hire one to offer only a subset of these services.
For instance, you may locate the property yourself and then contract the buyer’s agent to handle negotiations or bid on your behalf at the auction. Alternatively, you can use them to only contact the owner directly in the case of a private sale.
You can also choose to have the buyer’s agent search for property on your behalf and then let you handle the negotiations and purchasing.
If you want specific services from a buyer’s agent, ensure you’ve discussed them clearly, and they’ve been concisely outlined in the contract. The contract must also state the fee payable for each service.
This is the most recommended option for buying a house or property in Australia or other regions in Australia. You can appoint a buyers agent who’ll handle the full scope of work needed to secure your home or investment.
Your primary consideration will be specifying what you want in your ideal property by giving the buyers agent a list of requirements. These requirements include the property’s price, location, size, style, and access to amenities such as transport and other facilities.
Once you’ve decided on a property based on the shortlist the buyers agent will give you, the agent will negotiate the price with the seller or seller’s agent or bid it for you at an auction. If the negotiations end well, they’ll finalize the purchase, including all the necessary paperwork.
The advantage of having a buyers agent at the negotiation table and purchasing stage is that they’ll be able to break down complex terms in the sales contract for you and refer you to legal advice when necessary.
Moreover, you’ll not have to deal directly with the seller’s agent, shielding you from the “direct pressure” sales tactic they use on inexperienced negotiators to sell at a higher price.
A buyers agent’s greatest asset in the real estate market is networks. These networks give the agent wide access to properties off-market and in the private market. These include properties being sold at auctions for, in most cases, throw-away prices.
These networks also give them early access before the competition gets wind of it and sweeps in with counter offers that skyrocket the property price. Therefore, you get better deals and value from the purchased property.
Searching for a property is a time-consuming and stressful process. Having a professional buyer’s agent take care of all the work for you saves you a lot of time and eases the stress, giving you the space to focus on other things that may still need your attention, such as work and business.
Your commitments will typically be reduced to weekend inspections, focusing only on properties that the buyer’s agent has identified to meet your criteria.
Unlike working alone, the buyer’s agent will also use other tools, services, and data to narrow down to the best properties quickly.
Buyer’s agents specialising in investment properties are a great conduit for sourcing profitable properties that yield high capital growth. Instead of merely working with your requirements, they’ll also use their experience to guide you to new, better opportunities that you didn’t know existed.
Leveraging the buyer’s agent’s experience and property investment knowledge will save you time and make you more money in the long run as a property investor.
Amassed is a good example of a reputable buyer’s agent company with a robust property investment portfolio. The Amassed System is created for property investors, inspired by the success of Elijah Turkovic, a buyer’s agent in the agency, who’s managed to amass 7 million dollars in property by age 26.
The auction or negotiation process is one of the most stressful phases when buying property. Many home buyers and property investors seek the services of buyer’s agents because of their superior bidding and negotiation skills that ease their stress and guarantee them a better deal on the table.
Bidding at an auction is also an emotionally tasking process that needs someone objective to handle. A buyer’s agent understands all the tricks of the trade and therefore comes to the auction or negotiation table with an objective mind and the goal of getting a good deal for the buyer.
Experienced buyer’s agents can often net you a purchase price lower than what you were willing to pay.
Proper market analysis is crucial when deciding whether to invest in a particular real estate market or not. It also makes it easier to submit the right offers at the negotiation table.
Buyer’s agents have a superior and in-depth understanding of current market conditions, recent sales, and other seller motivations currently driving the market. They can, therefore, pick up and stay in tune with the trends and invest in peak seasons.
Therefore, the buyer’s agent will guide your investment strategy better to ensure you’re only buying property when the market has cooled off in preparation for a hot selling season where you can reap the most benefits.
The primary role of the buyer’s agent is to protect your interests as a buyer in a real estate transaction. The best way to ensure your interests are secured is by specifying subjects and conditions in your offer. These conditions keep you safe and ensure you’re only getting property evaluated and valued properly.
The buyer’s agent will only finalise the sale if all your conditions have been met within the set timeframe. Therefore, you’ll have peace of mind knowing that the property your buyer’s agent is negotiating for has undergone all the necessary inspections and will not hamper you from securing financing.
One of the buyer’s agent’s key assets is their local market knowledge. This knowledge, plus their expertise in buying properties, put them in a better position to spot roadblocks or pitfalls to your desired property purchase or wealth creation journey.
Using their experience, the buyer’s agent will help you estimate closing costs and additional fees and spot any potential issues within the neighborhood you’re buying into. They’ll also walk out of the negotiation table if they spot the deal turning sour, saving you stress and expensive costs in a bad investment or unforeseen closing and additional fees.
A buyer’s agent must deliver on their promise since they’ll only get paid if they help you find a home or property investment. Typically, the seller will pay the buyer’s agent, though the fees are embedded into the home’s final price, which means you’re the one technically paying them.
The fee charged by a buyers agent varies depending on the agent and the level of service they provide. Depending on these factors, you might have to part with as low as $100 for a simple service such as bidding at a small auction.
Therefore, the more services you need, the more you’ll have to pay.
Typically, a buyers agent will charge a percentage-based fee of 2-3% for their complete services, including property search, inspection, and negotiation. This fee is set on the final sale price of the property.
Therefore, a $2,000,000 property may cost you $40,000 in buyer’s agent fees for the complete services. Most buyers agents also charge a small upfront fee before commencing their services. This fee is reimbursed after the property is secured and typically ranges between a few hundred dollars to $3,000.
Some agents charge a fixed fee for their services based on the price bracket the property falls on. For instance, there might be a fixed fee for properties ranging from $1 million to $1.5 million and a different cost for properties ranging from $1.6 million to $2 million.
Research around and ask various buyer’s agents and agencies in Melbourne about their fees or quotes to help you pick the best candidate or get an idea of what prices are normal within the area.
You can find the best property buyer’s agents in Melbourne in two ways. These are through a normal web search or a search through the buyer’s agents’ professional body.
A simple search on your favorite search engine should yield results with a list of buyer’s agents within the area. Take some time to read the reviews and ask someone who’s worked with them before about their experience.
Alternatively, through the Real Estate Buyer’s Agents Association of Australia website, you can browse for buyer’s agents such as Elijah Turkovic from Amassed and others in Melbourne or other parts of Australia.
The professional body’s website is constantly updated with prominent and new buyer’s agents in different Australian regions.
Before engaging a buyer’s agent, here’re a few key questions you should ask.
Q) Are You Licensed ?
Ans) A buyer’s agent must hold a full real estate license with extensive experience in the property industry. Skipping this step will be putting your hard-earned cash, possibly your life savings, in the hands of an unqualified individual to negotiate and buy property on your behalf. Companies such as Amassed hire qualified internal teams to do extra services for you, such as reviewing your investment strategy, which often requires additional certification.
Q) Are You A Member of the State Real Estate Institute?
Ans) Being a member of real estate institutes within Australia or a specific state shows that the buyer’s agent adheres to strict professional industry standards. Therefore, you’re guaranteed superior service delivery and value from their services.
Q) Do You Have an Active Professional Indemnity Insurance?
Ans) Even under the hands of an experienced buyer’s agent, things can go wrong. A reputable buyer’s agent or agency will have active professional indemnity insurance to protect you against losses incurred while they’re offering their services that led you to miss out on a property or sale.
Q) Do You Have Any Conflicts of Interest?
Ans) A buyer’s agent should not also double as a seller’s agent in any property you might be interested in. Therefore, they must be dedicated buyer’s agents who only serve the buyer’s needs.
The Melbourne real estate market is great for buying a home or investing in property. You can work with a buyer’s agent who’ll learn your wants and needs, locate the best property for you, and negotiate the best deal from the seller or agent.
The benefits of working with a buyer’s agent far outweigh those of going at it alone. Therefore, if you want to buy or invest in Melbourne, Contact Amassed today and start a profitable wealth-creation journey.