MAP arranges a lot of pre-approved home loans for expat clients but many end up expiring as the task of finding the right property is too difficult when living overseas. This is whether a buyers agent can assist.
What is a buyers agent?
A Buyers Agent (or Buyers Advocate as they are sometimes known) are essentially real estate agents who represent the buyer rather than the seller. So a standard real estate agent representing the seller is trying to get the best price for the seller – the buyers agent is attempting to get the best price for the buyer.
What do Buyers Agents do?
The services offered by Buyers Agents does differ from agent to agent. Obviously all Buyers Agents will, on your behalf, locate suitable property for you and negotiate the purchase of that property. Some buyers agents though will also take care of or assist with;
1) Ongoing property management of the property if its an investment property (ie, find tenants and handle the ongoing management of the property),
2) Renovation and Development – some buyers agents will purchase property on your behalf with a view to renovate for profit. The Buyers Agent in this case will highlight the renovation plan and call for tenders from their panel of experts to determine cost of the renovations. The Agent will then project manage the renovation/development through to completion.
Why use a Buyers Agent?
There are several reasons to use a buyers agent, here are just a few;
1) If you are an Expat or Non Resident living overseas the Buyers Agent is your eyes and ears on the ground keeping a look out for property on your behalf. They will also handle all the negotiations on your behalf so you save time and money by not having to make the trip back home,
2) Buyers Agents often get access to property before they are advertised to the general public. This is because Real Estate Agents selling property will have clients that require a quick sale so will offer the property first to a Buyers Agent who they know have buyers lining up to purchase.
3) Many Buyers Agents are qualified valuers so know what a property is worth. Many have also bought and sold 100’s of millions of dollars worth of property and therefore know a deal when they see one,
4) A limited number of Buyers Agents will also take care of renovations and will locate property with this idea in mind. So Expats and Non Residents living overseas can still take advantage of buying and renovating Australian property for profit.
What do Buyers Agents Charge?
Prices do vary between agents but generally they charge around the 2% mark. Most will require a deposit upfront (generally around $1500) which is non-refundable however it will come off the total fee payable upon purchase of a property.
If you would like to use a buyers Agent but are unsure where to start, MAP has access to a network of Buyers Agents Australia wide so contact us for a referral.