Buyer’s agent services are becoming increasingly common as buyers look for ways to gain a competitive advantage over other purchasers. They claim to take the stress out of the purchasing process, by using their market knowledge and connections to help buyers find and secure the right property. So, what can you expect to pay for a buyer’s agent? See below for buyer’s agent fees, service inclusions and what to look for in a buyer’s agent in Tasmania.
Buyer’s agents – how do they charge?
Buyer’s agents in Tasmania generally operate on one of two pricing models – A flat fee model or a percentage of purchase price.
The flat fee model provides the buyer with certainty over what the final cost will be. The percentage model is the same structure to what most selling agent work on, a percentage of the sale price. Be sure to ask if the fee is inclusive of GST, so that you avoid any nasty surprises.
How much does a buyer’s agent cost?
Buyer’s agent fees can vary depending on the areas you are looking to buy, the kind of property you are searching for, the level of help required and the experience of the buyer’s agent.
On average, buyer’s agents in Tasmania generally charge around 1.5-2% of the purchase price, or a flat fee of approximately $12,000 – $16,000 for a full search package.
Keep in mind that with all services, you get what you pay for. And if the fee quoted is far lower than others obtained, then it may be for a partial service or be offered by a provider with limited skills and local knowledge.
When are buyer’s agent fees payable?
Local legislation will dictate when a buyer’s agent can request payment from a client. For most agencies, the fee will not be payable until the exchange of contract or at time of settlement. There may be a small upfront engagement fee required at time of signing an agreement with a buyer’s agent. In Tasmania, most buyer’s agents will not require payment until the date of settlement (excluding the engagement fee).
What does the fee include?
Buyer’s agents can tailor packages to suit the individual buyer and their needs. Services they commonly provide include:
- Searching for properties, including off-market or silent listings.
- Researching suitable locations and properties.
- Attending open homes and inspections.
- Providing market intelligence and information on comparable sales.
- Negotiating with selling agents & vendors.
- Assisting with due diligence and liaising with third parties, including conveyancers and building inspectors.
Why use a buyer’s agent?
A buyer’s agent can provide a buyer with an advantage over other buyers. The top 5 reasons people may appoint a buyer’s agent are:
- A buyer’s agent works exclusively for the buyer. A real estate agent is employed by the vendor to work in their best interests, and it makes sense for the buyer to have their interests protected. A buyer’s agent also knows the tricks of the trade and can use this knowledge to your advantage.
- Save you money. A buyer’s agent is an industry expert, and their local market knowledge and research can save you money and ensure good decisions are made. They are also experienced negotiators and can help you secure the right property for the right price with the right terms.
- Widen your property options. Buyer’s agents can provide you with access to “off-market” properties that you would not have otherwise known about. Furthermore, they often know about properties soon to hit the market so that you can be one step ahead of the competition.
- Save you time. A buyer’s agent does the hard work for you by researching and inspecting properties so that you are only informed of those that suit your requirements. They can also provide exposure to more properties, meaning you can find you your dream home sooner.
- Save you stress. Searching for a home can be exhausting. The role of a buyer’s agent is to make the process as hassle-free as possible for you.
If you would like to talk further about buyer’s agent fees, or the service they can provide, please contact Angie Roberts at My Hobart Home – Buyers Agents on 0448 694 537 or email angie@myhobarthome.com.au