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Working with a Buyer’s Advocate

Working with a buyer’s advocate

There’s no denying that buying property in Australia can be a daunting and at times complex process, particularly for inexperienced first-home buyers. 

One option you may have heard about or considered is to engage a buyer’s advocate. 

Offering expert guidance and market insights, a buyer’s advocate can be a valuable support for anyone seeking to buy a home. 

In this guide, we’ll take a closer look at buyer’s advocates. Covering what they are, what they do, their pros and cons, and offer an alternative for securing your dream home without added fees or stress.  

 

What Is A Buyer’s Advocate?

A buyer’s advocate is a licensed real estate professional who works exclusively on behalf of a buyer, advocating for their interests and expertly guiding them through the property purchasing process. 

They possess a range of skills and in-depth knowledge regarding the property market, current trends, valuations and more. This allows them to provide objective information, advice and support that can be of great value to a buyer. 

What Does A Buyer’s Advocate Do? 

Specialising in searching out properties, evaluating them and negotiating their purchase on behalf of a buyer, you can expect a buyer’s advocate to offer services in 5 key areas:

1. Identify Buyer Objectives

A buyer’s advocate should listen closely to a buyer’s needs, desires, goals and wants to ensure they can best understand what they are searching for. This supports them in crafting a strategy and identifying the best suburbs and properties to inspect for your budget and lifestyle. 

2. Performance Of Research

Having access to a wealth of information on the cities and suburbs you are interested in, a buyer’s agent will perform detailed research into these and help educate you about them.

Experts in identifying market trends and pinpointing up-and-coming locations you may not have previously considered, they can help you to determine the most ideal suburbs. 

3. Sourcing Of Suitable Properties 

Next, a real estate buyers’ advocate will search out properties that meet a buyer’s key criteria and provide these as a best-fit shortlist. They can then also arrange a suitable time for you to inspect your preferred properties from this list.

Not limited to published listings with agencies or those on online platforms such as Domain or RealEstate.com they should also possess an extensive network through which to find suitable properties. 

4. Evaluation Of Your Choice

Once a buyer has decided on their ideal property, a buyers’ agent will complete an appraisal of the property. Giving the buyer a clear indication of current market value and what they should expect to pay.  

As seasoned professionals, this appraisal is based on sound knowledge of the local market and can help you avoid overpaying for a property or making an emotional decision rather than an informed one. 

5. Negotiation Of The Sale

Lastly, a buyer’s agent will help you formulate and make a fair offer for a property and negotiate its final sale. In the case of an auction, they may also attend in your place and bid on your behalf. 

Arguably one of their most valued skills, a buyer’s agent excels at negotiating, potentially saving you a lot of money when buying property. Additionally, they are also best placed to ensure favourable terms for the sale. 

Helpfully, they may also help to coordinate the required pest and building (or strata) inspections and facilitate the exchange of contracts.

What does a buyer’s advocate do?

How Much Does A Buyer’s Advocate Cost? 

How buyer’s advocate fees are paid can vary depending on the level of service required and the individual terms set by them. 

It is worth noting that current legislation outlines that they may charge a fixed fee or a percentage of the sale price as remuneration for their services. However, exactly how much or what percentage they can charge is unregulated and therefore open to negotiation. 

As per Domain:

‘Depending on the service needed, they may charge a set fee, starting from as little as $100 to attend an auction for you.

For a full search, inspection, and negotiation service, they may charge a percentage of the property’s sale price, which can be up to 3 per cent, plus GST.’ 

With current property prices well into the hundreds of thousands of dollars, this can mean a significant fee to pay on top of all your other buying costs. 

 

Pros & Cons Of Engaging A Buyer’s Advocate

Whether you’re a first-time home buyer, a seasoned investor, or simply looking to upgrade or downsize, partnering with a buyer’s advocate can be helpful. However, it is not necessarily for everyone.

Pros:

  • Saves you time and effort in researching the property market and available properties
  • Gives access to a wider range of properties due to their network connections
  • Provides valuable insights into trends and genuine market values 
  • They have extensive negotiation skills
  • Supply unbiased, unemotional advice that seeks to keep you informed and best placed to make an intelligent purchasing decision 
  • Can help ease the level of stress and complexity associated with buying property

Cons: 

  • Fees can be quite expensive and are not currently industry-regulated  
  • Costs involved are not always indicative of a high level of service and expertise
  • Potential for conflicts of interest as often supporting several buyers with similar objectives
  • Can leave you feeling uninvolved with the process or pushed towards something you’re less sure about
  • Involving a third party can make communication harder or miscommunication more likely, frustrating buyer objectives and delivering unsatisfactory outcomes 

 

How To Secure The Best Price & Value Without A Buyer’s Agent

If you’re keen to enter the property market but do not have room in your budget for a buyer’s agent, don’t despair. 

While a buyer’s agent can undoubtedly be a huge asset when buying an established property, this is not the only way to get a foothold in the property market. 

One alternative that is well worth considering in Perth is a house and land package. 

Often providing significantly better value, both now and in the future, building a new home rather than buying an existing one can also be much more cost-effective. 

Rather than losing hard-earned or borrowed funds in buyer’s advocate fees, you may instead be eligible for budget-boosting government grants such as the first home-buyers grant or building grants. 

 

How Stop Renting Perth Can Help

Taking on a role similar to that of a buyer’s advocate but without the associated fees, our expert team provides valuable advice to aspiring homeowners. 

Guiding them through their options, we answer all their questions and help them escape the cycle of renting sooner than expected. 

With over 70 home designs to select from and land available in locations all over Perth, our house and land packages provide buyers with exceptional value, flexibility and choice.

House and land packages provide customisation and choice

We’re Your Dedicated Advocate 

Taking a more dynamic and understanding approach, many of our clients are able to qualify for a house and land package without needing a significant deposit or savings set aside. 

Where this is not possible, we continue to assist, offering a proven roadmap and strategies for success. Ensuring every Australian can achieve their dreams of homeownership.   

Having been where you are, we are committed to advocating for your best interests, meaning you do not have to remain renting, overspend or compromise on owning a comfortable home.

To learn more or to arrange an obligation-free information session with one of our friendly team members, book your call today. 

See If You Qualify

We’re here to help, so let’s get started! it’s time to stop renting and start taking steps towards home ownership.