What Does a Buyer’s Agent Do?

Buying a house is one of the biggest financial decisions of your life and it can be a time-consuming process that demands a lot from you. A buyer’s agent can help you navigate finding and buying a property, if you’re willing to pay a price. 

Commitments such as having a demanding job, raising a young family, or meeting important social responsibilities can leave you feeling stretched and at a disadvantage when navigating an already challenging buyers’ market. If this resonates with you and your circumstances, you may want to explore the option of engaging a buyer’s agent (also known as a buyer’s advocate). Having a buyer’s agent on your side can help significantly reduce your workload (especially if you’re time poor!) and help you make informed decisions that may see you enter the market faster.

What is a buyer’s agent?

Unlike a real estate agent, whose predominant role is to serve the vendor (the home seller), a buyer’s agent represents those looking to buy a home, completing a wide series of tasks to help prospective homebuyers secure their dream home.

They requires a real estate agent license and 12 months of full-time agency experience to act on behalf of a buyer. Their role is to predominately help their client find their ideal property and represent their client in the buying process, fulfilling duties and responsibilities associated with looking for and securing a home.

How can a buyer’s agent help?

A buyer’s agent helps you find a property that suits your needs, location budget and lifestyle. They can inform and support homebuyers throughout the process by…

• Researching and analysing the current market, staying up to date with trends and market conditions.
• Identifying areas with potential for high rental yield or capital growth.
• Locating suitable properties.
• Developing a shortlist of properties that meet your needs and wants.
• Identify and access properties that have yet to be advertised for sale.
• Attending viewings and inspections, either alongside homebuyers or in their place.
• Bidding at auction on behalf of the homebuyer, if requested.
•  Negotiating with the property vendor and their representatives.
• Completing due diligence on a property, including a property appraisal and pre-settlement inspection.
• Providing referral partner information for mortgage brokers, conveyancers, building and pest inspectors and other industry related professionals.

How much does a buyer’s agent cost?

Cost can vary based on what services you’re receiving: Some buyer’s agents may charge a flat fee, while others may charge a percentage of the estimated sale price of their desired property. The big question regarding whether it’s financially worth hiring a buyer’s agent, is if they will save you time and money in the search and purchase. Domain Reporter, Allison Worral says a buyer’s agent could actually save you money, depending on the circumstance. “Money could be saved via off-market opportunities, strategic negotiation or tactical auction bidding,” said Worral.

What are the risks of hiring a buyer’s agent?

While there are no ‘regular fees’ for buyer’s agents, it’s not unusual for them to charge a five-figure fee. (typically 1.5-3% of the sale price of the home).

At such a sizable investment, it’s important to vet an agent before using their services. Check their credentials and vet if they’re members of any industry bodies. The Real Estate Buyer’s Agents’ Association of Australia (REBAA) holds its members to high professional and ethical standards.

Also, check client testimonials and Google reviews, as well as any recommendations or referrals from trusted friends or family. Make sure to chat with your MoneyQuest broker to see if they can provide you with any local recommendations; they may have a trusted buyer’s agent that they recommend and can work in consultation with throughout the property buying process.

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