Have you shopped around to get an idea of costs from a few buyers agents and found the price varies between agencies?
Have you been shocked at some of the costs associated with engaging a Buyers Agent to help you purchase your home or investment property in Brisbane?
I hear you! I plan to share why choosing the cheapest Buyers Agent in Brisbane may not necessarily be the best idea.
A Buyers Agent is a property professional that can guide you through the purchase process of buying a home or an investment property.
We all know sales agents work for the seller to get the highest price possible. Having a Buyers Agent in your corner, to ensure you are selecting a quality asset and not paying too much for it so you do not make a mistake, is crucial.
Buying property in Brisbane is one of the biggest and most expensive decisions you may make in your lifetime. It is important to do it right from the beginning to ensure you are not making mistakes. Let’s now look into why you shouldn’t use the cheapest Buyer’s Agent in Brisbane.
1. Assess Value NOT Price
When purchasing property there is a lot of work that goes into each site of interest. The level of local knowledge, past experience, process of due diligence and the scope of local agent networks will all add up to extra value for you as a property buyer.
If you are searching for the cheapest Buyers Agent in Brisbane and shopping purely on price alone, you may not assess the differences in value that you actually receive as part of the service.
Low fees might mean that you don’t receive extensive due diligence and research reports about properties that you are looking to purchase. Perhaps if it is an investment you are seeking, low fees might exclude tailored property investment advice and full property investment projection reports, to ensure the property is right for you.
The cheapest Buyers Agents in Brisbane might be new to the industry, and therefore they would lack extensive and well established networks with Sales Agents through the city. This might limit the number of off-market properties that you get to consider as a property buyer.
I have heard horror stories where Buyers Agents have not physically inspected the properties on behalf of their Clients. Some even rely on sales agents to video an inspection on their behalf. This obviously reduces the cost to a property buyer, but is dramatically increases the risk because a sales agent will not highlight any issues that a buyers agent should pick up during a physical inspection themselves.
2. Check for additional Qualifications
The property investment industry is not regulated when it comes to providing property investment advice. Yes, this may be shocking to hear because every day Australians are putting hundreds of thousands of dollars into property purchases, but they may be receiving advice from someone who has no qualifications to provide such advice.
When mistakes are made with property buying and property investing, they can cost you a lot of money as a property owner.
Thankfully, there are ways that Buyers Agents can set themselves apart to provide some level of confidence for consumers.
Below I have provided a list of professional bodies that govern the buyers agency and property investment industries in Australia. Participating Agencies are required to adhere to a strict code of conduct, giving property buyers the peace of mind that they are selecting the right Agent for their needs.
- REBAA: Real Estate Buyers Agents Association of Australia aim to raise the profile of the industry and to establish guidelines for professional conduct of real estate buyers agents nationally. Members of REBAA are committed to following the highest professional and ethical standards in the industry. Click HERE to see which QLD Buyers Agents are members of REBAA.
- PIPA: Property Investment Professionals of Australia aims to raise the professional standards of all operators servicing consumers in property investment. Members adhere to a strict code of conduct and are required to obtain professional standards of accreditation through education and a commitment to excellence.
- QPIA: Qualified Property Investment Advisors are members of PIPA who have completed an extensive accreditation course to become experts in providing advice surrounding property and investments. It is common that the cheapest buyers agents in Brisbane won’t have any qualifications and mask that by drawing in people with lower fees. Click HERE to search for Qualified Property Investment Advisors in your area.
3. The Cheapest Buyers Agent in Brisbane might focus more on Volume rather than providing a Quality Service
When a Buyer’s Agent charges low fees to their clients, they often have a lot of spaces to fill and can take on many clients at one time. This sometimes means less attention is focused on your property search and you may find personal communication and a high quality of service is lacking. It is important to look for an agency that prioritize quality over quantity.
The best way to do this is to request some details of previous Clients. Property buyers who have used a Buyers Agent previously are usually happy to speak to others about their experiences.
4. The Cheapest Buyers Agent in Brisbane will provide what you pay for.
In the property industry, like many others, it is definitely a case of “you get what you pay for” when you are searching based on price.
If you are looking for buyers agent who charges a bargain price, there will be some compromises that you must be willing to accept.
Some of these compromises may be more limited connections with agents, so fewer off market opportunities, lack of experience, lack of professional affiliations or simply a lack of in depth property knowledge. They may also be located interstate, so would not be experts on the local area or “on the ground” when it comes to inspecting properties.
However, some Buyers Agents will (and do) charge a premium for their services. In some instances up to 3% + GST – even at the highest price points. One thing to point out here is that the “most expensive” is not always the Best in this industry. So again … check what value they provide and don’t just assume that the most expensive is always the best!
5. The Cheapest Buyers Agent in Brisbane may actually be FREE
Yes that’s right, some Buyers Agents might advertise that their service is FREE.
What? No-one works for free!!!
It is absolutely true that no-one works for free, but some Buyers Agents get paid a fee from developers or builders to sell on their stock.
It is gut wrenching to witness, however, there are many Buyers Agents that have strong relationships with developers and they are paid high commissions by the developers to bring buyers in to absorb their stock. This is usually stock that does not provide strong growth opportunities for investors and are typically new estates a fair distance from the CBD or apartment high-rise unit developments. Because they are being paid in other ways during the purchase process, the fees to clients using their services can be FREE.
Property buyers must investigate whether using the cheapest buyers agent is Brisbane is right for them. I urge consumers to take the above points into consideration. You want to ensure that the person or company representing you as a property buyer will deliver the results you are after and help you by way of compliance with a professional standard.
A high quality buyers agent in Brisbane will save you the most money in the long run.
Please feel free to reach out at Streamline Property Buyers if you need assistance with your property search.