Many people think that using the services of a purchasing agent is too expensive. It is not the case. Purchasing agents can save you money, time, and hassle, no matter your budget. In most cases, they will save you fees and more.
The key difference between purchasing and traditional sales agents is who they represent. The purchasing agent works exclusively for the buyer, while the sales agent works for the seller. By law, an agent cannot act and accept a commission for both sides of the transaction. A good buying agent is independent and therefore has no financial ties to specific agents, developers, or real estate. The buyer pays them only the commission agreed upon at the time of the exchange for the property.
Most purchasing agents offer at least two levels of service:
- A complete search service where a purchasing agent finds and shortlists properties that meet their client’s criteria and then evaluates and agrees on recommended properties for purchase.
- Deal or Auction Bidding Service: The client actively seeks the market and engages a buyer’s agent to negotiate a private transaction or auction.
Purchasing agents can give you an advantage because they understand the auction process, bidding tactics and are not emotionally involved in the auction process or negotiations. For investors, the Purchasing Agent’s remuneration is tax-free. Buyers advocate’s in Melbourne usually charge a commitment fee before the search begins.
In the same way that a good financial broker will help a borrower find the most suitable mortgage loan from a wide range of lenders and mortgage products, an excellent purchasing agent will look for the best opportunities available in the market and negotiate in the interests of the buyer and help buyers choose a property that meets their criteria.
The importance of using a purchasing agent:
- Access a wider selection of properties (many not even advertised) through the purchasing agent’s contacts/network.
- Take advantage of your time: Ask someone to work hard when choosing the right property.
- Use a professional negotiator to get the lowest price.
- Avoid stress and frustration of being shown inappropriate and inappropriate properties.
- Have a professional independent purchasing agent on your side.
- Buy the right type of property in locations with good capital growth prospects.
- Help investors build their real estate portfolio faster by buying in growth areas.
- Give investors extra confidence and due diligence.
They will also ensure you pay only a little by providing background information on the real value of the property you want to buy so you can make an informed decision.
Summary
A purchasing agent can help you in different ways, depending on the level of participation you are seeking. They can handle all your searches and negotiations and coordinate all necessary support services, such as lawyers, building inspectors, and property managers.