More home hunters are using buyers’ agents to help them snag a property in Brisbane in a sign the market is hotter than ever. But are they worth it?
MORE home-hunters are turning to buyers’ agents to help them find the perfect property in the latest sign the Brisbane housing market is running hot.
Buyers’ agents were a rare breed in the river city only a few years ago, but a rising appetite for auctions, increasingly stiff competition at open homes and busy lifestyles have changed that.
Time-poor buyers fed-up with spending their weekends house-hunting are hiring licensed professionals to help them search, evaluate and negotiate the purchase of a property on their behalf.
Scott McGeever, a spokesman for the Real Estate Buyers’ Agents Association (REBAA), started his own buyers’ agency 21 years ago and said the number of people using buyers’ agents had grown five-fold in the past decade.
Mr McGeever said public awareness of buyers’ agents was rising as people became increasingly fed up with tackling the challenges associated with buying a home in the current competitive market.
“People just get sick of looking and sick of missing out on properties,” Mr McGeever said.
“A lot of the time they’re missing out because other people are paying more.
“It’s about being informed when it comes to a property’s value.”
REBAA, the largest national body representing professional buying agents, increased its membership from 12 in 2007 to 84 in 2020.
There are about 200 businesses operating solely as buying agencies registered nationally.
And that number is growing with REBAA receiving about 40 new membership inquiries each month — more than double what it received three years ago.
Universal Buyers Agents director Darren Piper said it was common for a buyer to fall into the trap of putting their trust in real estate agents, forgetting that they worked for the seller — not the buyer.
“A buyers’ agent works with a homebuyer to ensure they get their dream home for the best price possible,” Mr Piper said.
“With an extensive knowledge of the property market and expert negotiating skills, a buyers’ agent is able to leave emotions at the door, often saving the buyers thousands of dollars in the long-run.”
Mr McGeever, who is the director of PS Property Advisory, agreed that a benefit of hiring a buyers’ agent was that it took the emotion out of the process — particularly when it came to bidding at auction.
“A lot of buyers walk into an auction without a strategy and that sets them up for failure,” he said.
“People think it’s really easy to buy a property; reno shows make it look so easy, but it’s not. “Those going out there on a Saturday looking for property can get massively confused with what something’s worth.”
Metropole Property Strategists director and buyers’ agent Brett Warren said the increase in demand for buyers’ agents in Brisbane was a sign of the market changing.
“People are wanting someone to help them; whether it’s at auction or private treaty,” Mr Warren said.
“I think a lot of people are starting to understand what buyers’ agents do after seeing them at auctions.”
And Mr Warren believes it is only a matter of time before buyers’ agents become commonplace.
“That’s what happens in America. It’s very rare for someone to rock up to a home inspection on their own,” he said.
“I think it’s starting to head that way here.
“People are increasingly time poor, they don’t have the patience to go to three months of open homes and continually miss out.”
Layne Stephens and Thomas Schnieder just bought their first property together with the help of a buyers’ agent.
Ms Stephens said it was unlikely the couple would have been able to afford their three-bedroom, post-war house in Camp Hill without help.
“We were looking for an investment-grade property in a very popular suburb,” Ms Stephens said.
“It would have been difficult for us to afford a place there if we weren’t able to get it off-market.
“We’ve been able to buy-in at the floor of the market and there’s a lot of upsides for us in terms of having the opportunity to invest in a renovation or look at long-term options to possibly remove the house and build a new home.”
Ms Stephens said hiring a professional was worth the money because it took the stress out of the process, saved them time and helped them come up with a proper investment strategy.
“They’re 24-hours a day dealing with the local markets that you’re wanting to buy in to. They know those markets inside out, to a level of detail that you would never get on your own if you were just attending open homes,” she said.
“Because of the relationships they have, they can bring you opportunities that might be off-market or pre-market, which was a big drawcard for us”
An increase in the number of vendors wanting privacy when it comes to selling their home is also driving demand for buyers’ agents.
Ray White Albion real estate agent Jamie Charman recently started a buyers’ agency in Brisbane in response to an increase in vendors wanting to sell their properties off-market.
“I have met a lot of sellers over the years who are private people and don’t want to put their home on the market or go through the public sales process,” Mr Charman said.
Your Property Your Wealth director and buyers’ agent Daniel Walsh said he had noticed an increase in clients from Brisbane looking to invest across the country.
“For us, the majority of our clients use a buyers’ agent because they are time poor and they want to invest in the right locations that have solid growth fundamentals,” Mr Walsh said.
“As we buy Australia-wide we’re not restricted by location or dwelling type, and a lot of our clients’ aims are to build property portfolios and diversify them across Australia, where the growth is at the time.
“Most clients aren’t confident to buy interstate on their own if they’re not familiar with the location — they are worried they will make a costly mistake by buying in a location that doesn’t achieve capital growth.”
What is a buyers’ agent?
A buyers’ agent is a licensed professional hired by a potential homebuyer to alleviate some of the stresses that come with buying a property.
They can help search, evaluate and negotiate a property on behalf of the buyer.
While a traditional estate agent works for the seller of a property, a buyers’ agent works for the buyer.
What does a buyers’ agent do?
A buyers’ agent generally offers two levels of service — full and auction only.
A full service means an agent will help a buyer from the day of initial consultation to the day a property contract is signed (and sometimes beyond this point).
Using a client’s criteria, they will search for the ideal property (this could include off-market prospects) and negotiate the purchase of the property, whether by private sale or auction.
Buyers may also enlist the help of a buyers’ agent purely to bid for them on a home they have already chosen at an auction.
How much does it cost?
The price varies from agent to agent. Some will charge an engagement fee before they begin the search for a home, while those getting the ‘full service’ will usually pay a flat fee or a percentage of the property purchase price (usually about 1 per cent to 2.5 per cent).
To use a buyers’ agent to bid at an auction only on your behalf costs less.
Bear in mind that you will already have to fork out thousands of dollars for stamp duty, lawyer’s fees, building reports and mortgage costs.
Do your due diligence and be sure the agent you hire holds a real estate licence and is acting solely on your behalf.
BENEFITS OF USING A BUYERS’ AGENT
1. They can bid on your behalf at auction
2. They can search for the ideal property for you
3. Inside knowledge of market trends and access to off-market and pre-market properties
4. They have the negotiation skills to get you the best price
5. They know a good property from a bad one
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