Hi, I’m Sam Price Director and Lead Brisbane Buyer’s Agent from Templeton Property and today I’d like to answer the question: Why use a Buyers Agent when purchasing a property in Brisbane? Having a Buyer’s Agent on your side when you’re buying a property is a game changer. In this blog we’ll cover everything you need to know about Buyer’s Agents including: Why use a Buyers Agent; what they do; how they work; the benefit; what they charge; and how they can help you level the playing field.
Once considered the country cousin of Sydney and Melbourne, Brisbane has come of age and is undergoing considerable growth not only in population, which is predicted to reach 4.2 million by 2050, but also in infrastructure spending and business growth. Buyers from both interstate and overseas are attracted to the attractive lifestyle and weather Brisbane offers as well as affordable property prices. With growth comes competition and finding your ideal home or investment property has become both time consuming and complicated, especially if you aren’t continually in the market. This has seen the emergence of property Buyer’s Agents, whose sole focus is to represent the buyer’s best interests in assisting the buyer find and secure their ideal property.
What is a Buyers Agent?
A Buyer’s Agent, also referred to commonly as a Buyer’s Advocate, is a fully licensed property professional who represents exclusively the interests of their client, the buyer, in a real estate transaction. Put simply, their job is to assist their clients by searching, identifying, researching, evaluating, and negotiating the purchase of their client’s ideal property.
A Buyer’s agent will help you purchase the right property to meet your needs, at the right price, with the best conditions whilst providing unbiased advice throughout the process.
What does a Brisbane Buyers Agent do?
A Buyer’s Agent can do as little or as much with which their client would like assistance. This may be as simple as helping them determine the style, type and location of the property, through to searching and identifying their dream property, undertaking the due diligence and negotiating the conditions and purchase price.
A good Buyer’s Agent will spend time getting to know you, to determine your requirements, aims and budget parameters. They will then go into the market and using their extensive network of agents and knowledge of the Brisbane property market, will commence presenting you with properties (both on and off market), that meet your requirements and pass their strict due diligence assessment. When approved by you, they will commence negotiations on your behalf to secure the property for the best possible price and conditions.
Overview of the Templeton Buyers Agency Process:
- Develop a tailored plan
What are the wants and requirements to satisfy your desires for the property and from this information, a detailed plan is developed.
- Strategic market search (on and off market)
The Buyer’s Agent will thoroughly research the available listings that meet your requirements including off market and ‘pocket listings’ the agents have and may even door knock specific houses, streets or complexes if your brief is that precise.
- Inspections & Evaluation
The Buyer’s Agent will inspect each property that meets your requirements and undertake initial searches including zoning, flooding, easements and review of sales evidence to ascertain if this property meets your needs.
- Due diligence
If the property meets your requirements, passes the initial evaluation phase and, only if you the client is satisfied with the property, the Buyer’s Agent with then undertake the comprehensive due-diligence search which will be provided to you in full.
- Acquisition strategy
Depending on how the property is being marketed, the Buyer’s Agent will speak to you about how best to make an offer, with timing being of the essence.
- Negotiation/Auction bidding
For private treaty sales where you the client wishes to make an offer, the Buyer’s Agent will draft the offer for your approval, prior to presentation to the selling agent. If the property is going to auction, the Buyer’s Agent may recommend submitting an offer prior to auction, alternatively, will bid on your behalf at the auction and under your instructions.
- Secure contract
The Buyer’s Agent will be the key point of contact for all negotiations and will see the negotiations through until the contract is secured or when you have elected not to continue negotiations with the property.
- Arrange & attend building and pest inspection
Upon instruction, the Buyer’s Agent can arrange the pest and building inspections on your behalf and will be in attendance whilst they are carried out. The Buyer’s Agent will then report back to you, in consultation with the inspection reports, on all positive and negative findings.
- Conveyancing introduction
The Buyer’s Agent can introduce you to local conveyancers who will facilitate the legal searches and management of settlement.
- Property management liaison
If the property is being purchased as an investment, the Buyer’s Agent can refer you to reputable property management companies to advertise, lease and undertake the ongoing management of the property.
- Pre-settlement inspection
Prior to settlement, the Buyer’s Agent will undertake a pre-settlement inspection of the property to confirm all the contract included fittings and fixtures remain in the property and that the property has been maintained and left in a good state and condition. A video will be provided to you for your records.
Congratulations, the property has settled! Your Buyer’s Agent can pick up the keys from the selling agent on your behalf and deliver to you or provide them directly to the nominated property manager.
- Post purchase support
Your Buyer’s Agent is always available to provide support and guidance into the future.
Why use a Buyers Agent to help purchase a property in Brisbane?
Teaming with a Brisbane Buyer’s Agent to guide you to your new home or investment property will make the process of purchasing your new property more relaxed, painless and stress free. It will also give you comfort that you purchased the best possible property within your budget and has a team working with you through the whole process.
A Buyer’s Agent will help to:
- Determine your ideal property strategy
Buying a property is easy, buying the right property is hard. The process starts with formulating what your ideal property looks like including location, size, shape, zoning, improvements etc., before implementing a process and strategy to identify and secure the prime property.
- Gain insight and knowledge
You have an experienced property professional providing you with their insight and knowledge. Quite often it’s what you cannot see in the glossy photographs or even from a brief inspection, that makes all the difference.
- Help you make informed acquisitions in areas in which you don’t live
If you are located interstate or overseas, you have a local property professional on the ground and working in your best interests. They are your eyes and ears and are at your call 24/7.
- Save time and hassle
All the searching, property inspections, due diligence and negotiations will be carried out for you, allowing you to enjoy your evenings and get your weekends back.
- Avoid costly mistakes with comprehensive due diligence
An experienced Buyer’s Agent will undertake comprehensive due diligence on the property and will provide you with copies of this information.
- Access “Off Market’ opportunities
You will be tapping into the Buyer’s Agents network of agents and obtaining access to both off market and premarket properties.
- Help negotiate the best price or bid at auction
Assessing the market value of the property is crucial and an experienced Brisbane Buyer’s Agent will be able to appraise the property’s market value and secure the property for the best possible price, regardless of the method of sale.
- Most importantly – buy with confidence and sleep easy
Know that you are purchasing the right property and for the right price.
Who can a Brisbane Buyers Agent help?
The people we help include:
- Families looking for a new home
- First home buyers
- People relocating for work or family reasons
- Downsizers and retirees
- People with special needs
Why use a Buyers Agent and in what circumstances can they help?
- I am new to Brisbane and don’t know where to buy.
- I have very limited time and need someone to undertake the inspections and searching for me.
- I have no idea where to purchase in Brisbane, where is reputable and where to avoid.
- I am unable to get to the open homes and would like the help of someone to do all the leg work and help me with the checks and negotiations.
- I am relocating to Brisbane from interstate and need someone locally to help me purchase.
- I find dealing with selling agents quite difficult and would like someone to look after all the negotiations on my behalf.
- I have no idea what type of property I should buy for investment and where I should be looking.
- This is my first property purchase and I realise it’s very important to get this one right.
- I am having trouble finding suitable properties within my budget constraints.
- I am hearing about these off-market properties being sold and I want to have access to them.
- The property I like is going to auction and I don’t like auctions and would appreciate a professional to bid on my behalf.
- I use professionals is many other aspects of my life and believe engaging a professional Buyer’s Agent to advise on a property is no different.
- We are moving back to Brisbane from overseas and need help in buying a property prior to our arrival.
- I have tried to purchase several properties myself, though I keep missing out.
- I don’t know what to offer and am concerned about overpaying.
- I feel quite overwhelmed with the whole process of searching and want to outsource the whole process.
Why use a Buyers Agent when the selling agent can assist me?
The main difference between the Sales Agent and the Buyer’s Agent is who they represent. A Buyer’s Agent will be working exclusively for their client, the buyer, whereas the Selling Agent is working exclusively for their client the seller (vendor).
The selling agent does not and cannot work for you, the buyer. To do so would create a clear conflict of interest.
Are they worth the money – Why use a Buyers Agent?
Experienced property professionals
Buyer’s Agents live and breathe property and their sole job is to find you the right property, for the right price and best conditions, without getting caught into the traps that many inexperienced buyers fall.
Once you have selected the property, negotiations come into play to acquire the property for the right market price. Your Buyer’s Agent is an experienced negotiator and will handle all aspects of the negotiation between the selling agent on behalf of the vendor, and yourself, knowing when to push harder and when to pull back.
Level the playing field
99% of sellers choose a professional sales agent to market, negotiate and sell their property and it only make sense to counter this by having a professional on your side, to represent you and keep your interests at the forefront of the negotiations. Your Buyer’s Agent is that person.
It’s an emotional time
It is only natural to be a little nervous (or a lot) when buying a new home or an investment property; it’s a big decision. Your Buyer’s agent will keep things in perspective and provide independent, rational advice that is always in your best interest.
Research, research, research
The key to buying well and making money with property is knowing what to seek and what to avoid. Knowing the intricacies of the market, the location and the property is essential in making smart property decisions and this is the advice that a good Buyer’s Agent will provide to you.
Saving you time and stress
A Buyer’s Agents job is to make the process of buying a new home or investment property as stress free as possible. They do this by taking on the role of undertaking the inspections and communicating with the agents, allowing you to get on with your life. Using a Buyer’s Agent will give you back your recreational time and will only bring to your attention the properties that meet your specific brief.
Level the playing field
The selling agents job is to market the property and represent the seller to achieve the highest price possible. Who do you have in your court? A Buyer’s Agent is on your side and their sole responsibility is to look after your best interests, therefore they level the playing field.
Your network is your net worth
An experienced Buyer’s Agent will have built relationships with key agents over many years and this will gain you access to the world of off market and premarket properties. In the case here at Templeton Property, off market and pre-market properties made up over 45% of the purchasers made in the last 12 months.
As well as our long-established network of selling agents, we also have an extensive network of conveyancing solicitors, mortgage brokers, building and pest inspectors, property managers etc, to guide you through the purchasing process.
What does a Brisbane Buyers Agent Cost?
A Buyer’s Agent may charge a fixed flat fee for their service, or a percentage of the purchase price of the property, depending on the level of service that has been agreed upon.
A Buyer’s Agent, who is engaged to look after all aspects of the process from searching to negotiating to purchase, may charge between 1.5%-3.0% plus GST of the purchase price. An upfront retainer is also commonly charged when you engage them.
If you engage a Buyer’s Agent to look after a specific task of the buying process, they will charge a smaller fee. For example, you may engage the Buyer’s Agent to bid on your behalf at an auction or negotiate the purchase on your behalf.
Remember to read through the contract with the Buyer’s Agent carefully, as some Buyer’s Agents require payment of the full fee, even if you ended up securing a property without their assistance and in some cases, decide not to continue with the purchase. At Templeton, we don’t support or agree with this.
Are they truly independent?
Check the contract for any mention of commissions and or referral payments that could be received by the Buyer’s Agent. In all aspects, the Buyer’s Agent offers independent advice and service to you.
Keep in mind that on a percentage fee structure, the Buyer’s Agent has no incentive to negotiate the lowest possible purchase price, as they are paid on the purchase price, meaning – the higher the price the higher their fee will be.
Ensure they are a licensed Buyer’s Agent (Real Estate Licence) by checking with the Queensland Office of Fair Trading.
Many people have become Buyer’s Agents in recent years with little or no experience in property. With the entry bar so low and requiring only a Real Estate Sales License to become a Brisbane Buyer’s Agent, we would strongly recommend you seek out a Buyer’s Agent that has multiple qualifications and strong professional property experience. e.g., Registered Property Valuer etc.
At Templeton Property, we charge a simple flat fee, provide a 100% Money Back Guarantee and you will not be required to pay the balance fee beyond the deposit, should you choose not to purchase a property.
Are Buyers Agents fee tax deductable?
The Australian Taxation office (ATO’s) website states that while a property investor is well withing their legal rights to claim the cost of management fees and commissions paid to a real estate agent to inspect, manage and collect rent on your behalf, they are unable to claim:
- Commissions or other costs paid for the sale of a rental property,
- Buyer’s Agents fees, paid to engage an agent to identify a suitable investment property to purchase.
Therefore, the cost of a Buyer’s Agent cannot be claimed as an expense to offset your tax payable. However, the cost can form part of the ‘cost base’ of your property for capital gains purposes. This means that the fee paid to a Buyer’s Agent when purchasing an investment property can be included in the calculation of your cost base, along with the stamp duty, conveyancing etc. This will become most important when you sell the investment property at a future point in time.
Please note, this does not apply for the purchase of a principal place property, as they are exempt from capital gains tax.
We hope this blog has answered the question – Why use a Buyers Agent when purchasing a property in Brisbane? Are you considering purchasing a home or investment property in Brisbane? As an experienced Brisbane Buyer’s Agent, I would be happy to chat to you about the different markets and suburbs within Brisbane.
We look forward to hearing from you.
Sam Price, Director & Lead Buyer’s Agent – Templeton Property Brisbane.