Sydney’s property market is a jungle – it’s easy to get lost.
Competition is fierce, sales move fast, and a growing number of buyers are calling in backup through a buyer’s agent – someone who knows the market, and the strategies.
Buyer’s agents (BA’s) are becoming an integral part of the sale process for many home seekers who want access to opportunities they otherwise may not have uncovered themselves – as well as an advocate in the negotiation process.
But are they all they’re made out to be?
What a buyer’s agent can do for you
A BA is as the title suggests; they work for the buyer – you. As their job is to represent the interests of the home-seeker, this could involve a range of responsibilities:
- Research – scouting the market
- Advice – on suburbs, budget, price trends and risks
- Details and negotiation – from checking reports to handling the bids
For buyers who are growing tired of competing for properties, a buyer’s agent can provide access to a whole different playing field – off-market properties, or ‘quiet’ opportunities that may never appear online.
BA’s also excel at handpicking properties that perfectly match your criteria, saving buyers from wasting time on homes that aren’t a great fit.
Are they worth it?
In Greater Sydney – where the complexity of buying can be stressful – the demand for a BA to leverage their networks, tap into greater opportunities, and handle the undesirable aspects of buying, is becoming increasingly popular.
For buyers short on time, relocating or juggling work/life commitments, a BA can be particularly useful in finding and securing the right home – and for many, this value alone can outweigh the fee. Ultimately, the difference comes down to selecting the right one; their experience, local knowledge, network and track record will determine if it’s worthwhile (or not).
Common fee structures
In Australia, buyer’s agents typically charge one of the following:
- A percentage-based fee
- A tiered fixed rate
- A flat fee.
For BA’s charging a percentage, a fee between 1.5% – 3% of the purchase price is common. The scope of service is certainly a determining factor, and should be compared when looking for the best fit.
The bottom line
It’s absolutely possible to secure the right home in Sydney without a buyer’s agent – but many home seekers are finding the journey easier and faster through hiring one.
For buyers confident in their own research, trusted real estate agent connections and negotiation skills, a BA may not be necessary; but for those seeking advice or auction representation, it could be a smart investment in the long run.
References
Common fee structures: Property Update
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
