Q: What are buyer’s advocates or buyer’s agents?
A buyer’s advocate, also known as a buyer’s agent are real estate buying specialists hired by a prospective home-buyer or investor to undertake property due diligence and negotiate the purchase of a property on behalf of the buyer. A buyer’s advocate represents the interests of the buyer in a real estate transaction, as opposed to a seller’s agent.
Q: What’s the main difference between a selling agent and a buyer’s advocate?
A: The difference is simple. The selling agent is paid to represent the vendor to secure the highest possible price from the buyer. A buyer’s advocate is paid to represent only the buyer, by negotiating with the selling agent the lowest possible price and the most favourable terms and conditions for the buyer.
Q: How long have buyer’s advocates been around?
A: Nearly 80 percent of people in the U.S will use a buyer’s advocate when purchasing a property and it’s almost as common in the U.K. The service provided is independent representation as a buyer, and assistance in obtaining the right property at the right, and lowest possible, price. Buyers Advocacy is a relatively young branch of the Real Estate industry, coming about around 20 years ago. Like any growing industry, it’s important that you do your research to ensure that any Buyers Advocate/Agent has a strong track record.
Q: What’s the main benefits for property buyers in engaging a buyer’s advocate?
A: Time, money, and peace of mind are the main benefits which everyone will gain from engaging a specialist. Buyer’s advocates have their finger on the pulse and therefore have a lot more knowledge about buying property. The thing about knowledge is that you don’t know what you don’t know. Buyer’s advocates know what questions to ask and where to get the information. More often than not, the buyer’s advocate own expertise will save the buyer more money on the purchase price than their fees. The buyer will also have saved literally dozens of hours of their own time and be more likely to have made a much better decision on the property that they have purchased.
Q: Does a buyer’s advocate need to have a real estate background?
A: Yes, most definitely! Don’t risk putting what’s often the single largest purchase you will make in your lifetime in the hands of someone without adequate real estate and negotiating experience. Our fully trained and licensed buyer’s advocates are ex-real estate industry professionals with no less than 20+ years’ experience. It makes sense to use someone with a knowledge of the industry who can negotiate with the selling agent to secure you the best price.
Q: Are buyer’s advocates fees tax deductible?
A: Fees charged by buyer’s advocates are usually deemed as tax deductible but only if you’re buying the property for investment purposes. In any case, we recommend you always consult a reputable accountant or tax specialist to determine your individual circumstances.
Q: Are there any particular buyers who benefit most from using a buyer’s advocate?
A: It’s worth keeping in mind that buying a property is arguably the most valuable asset that most people will ever buy. Whilst most real estate agents are professional and good people, they are contracted to work for the property owner, so I personally believe that everyone who buys a property will benefit from engaging a buyer’s advocate to represent your best interests. The average person buys a property once every 15 years whereas Your Australian Property are continuously buying properties on behalf of their clients every year – that’s a lot more practice than a DIY. Even if the buyer lives in the same vicinity as where they are buying, they will benefit enormously from engaging a skilled real estate buying professional. Knowing the market is a lot different to knowing the neighbourhood, especially if the property is being purchased for investment purposes.
Q: What’s the role of a buyer’s advocate?
A: Essentially, the role of an independent buyer’s advocate is to:
- Find and identify the most suitable and best available properties in the market according to the buyer’s requirements, needs and property goals.
- Evaluate and shortlist properties for buyer’s consideration and help select which property is the most appropriate based on the buyer’s criteria.
- Undertake comprehensive property due diligence on the buyer’s selected property highlighting its strengths and weaknesses independently and objectively.
- Negotiate the lowest possible purchase price with the best terms and conditions on behalf of the buyer.
Q: What makes a good buyer’s advocate?
A: A buyer’s advocate is a licensed professional who’s engaged by the buyer to help them find the best available property and negotiate it at the lowest possible price with the best terms and conditions. A good buyer’s advocate will be able to quickly and methodically find you the right property at the right price, while at the same time independently representing your best interests at all times. A good buyer’s advocate will also provide you with objectivity and complete transparency throughout your buying journey.
Q: What should buyers look for in a buyer’s advocate?
A: In addition to licensing, buyers should also look for evidence to support the buyer’s advocate having skills in the areas that are important to the buyer. For example, if buying for investment purposes the buyer should ask for examples of the depth of the buyer’s advocate’s research or copy of the buyer’s advocate due diligence property report. Buyer’s advocates need to be very good communicators which includes listening to their client’s objectives, being able to articulate alternative methods, providing regular feedback throughout the process, and having strong relationships with third parties to the transaction.
Q: Are you the same as other Buyers Advocates?
A: No. We have over 20+ years of experience in purchasing property. We work solely for the buyer, therefore, the buyer’s best interests are always represented and there are no potential conflicts of interest. We provide honest and objective advice to ensure you’re well informed of all considerations. We are more than happy to tailor our services to suit the buyer, as we understand everyone is different.
Q: What are the costs involved, how much are your fees?
A: At Your Australian Property, we pride ourselves on listening to our client’s needs and also providing you with complete transparency throughout your buying journey. Prior to commencement of our service, we like to meet with you to discuss your specific requirements and agree the appropriate fee upfront.
How to reach us: Call us directly on +61 (0) 418 144 644 or send us a message via our enquiry contact form.