Different terms in real estate often confuse buyers. Some do not even know that there is a designated type of agent for buyers, known as Buyer’s Agents.
When you’re buying a property, it would be best to hire a Buyer’s Agent. But what is a Buyer’s Agent? Do you know what they do? What is their difference from other real estate agents? You have most probably thought of most, if not all, of the misconceptions about buyer’s agents listed below.
Buyer’s agents are the same as other real estate agents.
One common misconception about buyer’s agents is that they are the same as other real estate agents. Since most people only know about real estate agents in general, they think that a listing agent, seller’s agent, and buyer’s agent are the same. Based on their understanding, real estate agents are general agents who you can contact for any real estate transaction. Some Buyers don’t even know Buyers Agents exist.
A buyer’s agent can also help you sell your home.
Buyer’s agents may also have the skills to sell your home. Normally, the buyer’s agent’s clients are genuine and motivated with finance approved ready to go. However, their specialty is looking for and recommending properties based on the buyer’s brief and eventually negotiating the sale. The owners pay the real estate agent to look after the seller, not the buyer.
Hiring a buyer’s agent is expensive.
The first thing that must have come into your mind is that hiring a buyer’s agent when purchasing a property will cost you extra money. Maybe that is true, but an experienced buyer’s agent can save you money on the purchase.
Buyer’s agents are experienced in negotiating, often saving 10’s of $1000 off the asking price for the buyers. More importantly, if buyer’s agents are experienced former real estate agents, it means that they know the market and they know the areas to avoid. They have a good working relationship with all the good agents who feed them with off-market properties. They will save you time as they will scan many more properties in a week than the normal buyer can ever see in a weekend. You must remember that buying a home or investment is a huge outlay. The buyer’s agent’s fees are very small in comparison especially if it saves you buying on emotion the wrong property.
You can save more money by not hiring a buyer’s agent.
Some buyers think that it would be more practical for them to transact directly with listing agents. They think that they can close a deal on their own. However, buyer’s agents are more experienced with negotiation and can actually get you a good deal. Given that they have more knowledge in the field and have more insights into property purchasing, buyer’s agents can save you from many possible issues in the future. Hence, saving you from possible additional costs, that may run into major expenses in the future.
Buyer’s agents have restrictions on the property they are selling.
Unlike listing agents, buyer’s agents do not have limitations on the properties they can sell. They can find the buyer’s ideal property in any suburb and they are not limited to any area. They can show a buyer any property, depending on the buyer’s requirements. Buyer’s agents can also offer you properties established or newly constructed, even organize house and land package deals. Buyers just need to tell them what property they are interested in and the buyer’s agent can make possible recommendations and arrangements.
Most buyers don’t really see the value in hiring a buyer’s agent. This is because they have misconceptions about buyer’s agents and lack knowledge of what the buyer’s agents can do for them.
Of course, all the things we said about a buyer’s agent relate only if they hire an experienced buyer’s agent. Experienced buyer’s agents are those who have worked in the real estate industry as a real estate agent for a minimum of 10 years. Why? Because this indicates they have seen real estate market trends, have worked with a range of agents, have a good reputation, and are known to be a person of good integrity.
Do you have any more misconceptions about buyer’s agents that you want to clear up? To know more about how buyer’s agents can help you have a hassle-free purchasing journey, feel free to reach out to the buyer’s agents at Buying Perth Real Estate, and get your free consultation.
We would be more than happy to walk you through the details of how a buyer’s agent can help you with purchasing a property.