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How Much Does a Buyers Agent Cost?

Buying a property is difficult. It’s a huge investment and there are a lot of things to consider before taking the plunge. When searching for your dream home location is important, of course, but you also need to think about things like the condition of the property, its size, whether it has enough room and whether it’s in a good neighbourhood.

That’s only the beginning! Once you’ve found a suitable property (or two), you then have to negotiate with the seller and haggle over the price. If you aren’t familiar with the area, you just have to trust that the real estate agent is offering a fair purchase price. Then there is all the paperwork, pest inspections… the list goes on!

It’s no wonder that so many people find the whole process stressful and decide they want the help of a buyer’s agent, just like the friendly team at FNQ Buyer’s agent.

Is it really worth hiring a buyers agent?

In our experience, its always worth hiring a buyers agent because they save you more than they cost. A buyers agent can be a great asset when purchasing a home. They have inside knowledge of the market and can help you navigate the often confusing process of buying a home.

However, a buyers agent does come at a cost. So, to help you decide for yourself if the benefits are worth the price tag we have put together some things to consider.

What is a buyers agent?

First things first, what exactly is a buyers agent? A buyers agent is a professional who helps people find properties that match their needs. Buyer’s agents can also help with parts or all of the property purchase process . They are experts in their field and will have a deep understanding of the real estate market.

What does a buyers agent do?

A buyer’s agent will work with you to find the right property, negotiate the property purchase price and help with all the paperwork. If you want, they can take care of everything from start to finish so that you don’t have to lift a finger (that sounds good to me!).

They will do the due diligence and on both on and off market properties, giving you professional advice on a fair price bracket and property value. They can advise you on things like capital gains tax if you want to buy an investment property as well as auction bidding for both the commercial and home buyer.

When you work with an FNQ Buyers Agent, you will have an experienced buyer’s agent who has your best interests (and hip pocket) at heart, dedicated to finding you the right property at the right price.

What are the benefits of hiring a buyers agent and why you might choose to hire one?

There are many benefits of hiring a buyer’s agent, keep reading to find out why we always recommend working with one.

1. You may not have enough time to dedicate to finding and viewing properties

Many people dream of owning their own home, but the process of finding and purchasing a property can be daunting. There are a number of factors to consider, and it can be difficult to find the right balance between cost, location, and amenities.

For many people, the biggest challenge is simply finding the time to view potential properties. With work and other commitments, it can be tough to find the hours needed to drive around looking at homes.

A Buyer's Agent will do the leg-work for you!

One of the most important services a buyer’s agent can provide is finding and viewing properties that fit your criteria. With their knowledge of the market and their networking connections, they can often find listings that haven’t yet been made public. And because they know what you’re looking for, they can save you time by only showing you properties that are worth your time to view.

If you’re working with a buyer’s agent, be sure to give them a clear idea of your budget, must-haves, and deal-breakers. That way, they can do their job effectively and help you find the right property in a timely manner.

2. You don't know the area well and might not be aware of all the available properties

If you are not from the local area, you won’t know all the ins-and-outs about it. Things like schools, public transport, and local shops are important factors to consider when purchasing a property.

You also need to make sure you consider all your options and that means inspecting off market properties, which you don’t have access to. Only a small percentage of properties actually make it to public listings.

A Buyer's Agent has the local knowledge and inside information

When looking for a new home, there is nothing like working with a qualified buyer’s agent who has experience in the local area. A buyer’s agent who is familiar with the area can help you find the right property for your needs. They will be able to provide you with information on schools, transportation, and other amenities in the area.

Buyer’s agents will also have access to the latest property news and off market properties . These are properties that are not yet listed on the market. By working with a buyer’s agent, you may be able to find your dream home before it is listed publicly.

3. You don't know how to negotiate a good deal on a property or what a fair property purchase price is

When you’re trying to buy a property, it’s important to negotiate with the real estate agent and make sure you’re not paying too much based on what they property is worth. There are lots of things that need to be taken into account when you calculate the current market value of a property.

But if you don’t know how to negotiate or even what a fair property price is you may end up paying a few too many thousand dollars (ouch).

A buyer's agent can negotiate on your behalf

A buyers agent can make sure you get the best property purchase price. They’ll work with you to come up with a fair offer based on the market value of the property and the sellers’ asking price. They’ll also take into account any repairs or renovations that need to be made.

How Much Does A Buyer's Agent Cost?

So now you know what you are paying for when you hire a buyer’s agent, lets take about how much you pay. In truth, there is no short answer. Each buyer’s agent will have their own fee structure and buyer’s agent fee. Although these can vary greatly, there are some similarities.

Types of Services

How much you pay your buyer’s agent will depend on how much help you need. There are two broad categories that most services fit into.

Complete service

With a full service, the buyer’s agent will help you shop for homes, negotiate the purchase contract, and provide guidance and support through closing. Whether you’re a first-time buyer or an experienced investor, working with a complete service buyer’s agent is a smart way to get the most out of your home purchase.

Partial service

As the name suggests, a pertial service means that they buyer’s agent will help you with part of the process. Such as helping with the property search, helping to negotiate the purchase price to get a lower price or assisting with the paperwork

Types of Fees

There are a few different types of buyer’s agents fees when is comes to hiring a buyer’s agent (some may even be tax deductible, depending on your circumstances). While this is not an exhaustive list, we have covered three pricing models that are very common below.

If you want a buyer’s agent to help secure your dream home, make sure you ask for their own buyer’s agent fees and pricing model.

Engagement Fee

An engagement fee is what buyer’s agents charge their client in order to secure their services. This fee is typically paid upfront, and it allows the buyer’s agent to begin working on their behalf. The size of the fee will vary depending on the agent’s experience and the complexity of the transaction.

In most cases, the buyer’s agent will apply the engagement fee towards their commission when the transaction is complete. However, if the buyer decides to cancel their contract with the agent, they may forfeit their engagement fee.

Fixed Fee Model

A buyer’s agent may charge a flat fee for their services. This is a one-time fee that is paid at the time of sale. The flat fee covers the buyers agent’s help with the negotiation of the purchase price, inspection of the property as well as handling all of the paperwork required to complete the sale.

Percentage Model

The buyer’s agent percentage model is a method of compensation where the buyer’s agent is paid a percentage of the final purchase price. This can be a fixed percentage or a tiered in a price bracket.

This buyer’s agent model is advantageous for buyers because it aligns the buyer’s agent’s interests with the buyer’s interests. In other words, the buyer’s agent only gets paid if they facilitate a successful purchase. This incentive structure creates alignment between the buyer and buyer’s agent, which often results in a better outcome for the buyer.

Summary

In summary, hiring a buyer’s agent has many benefits and while it may cost a few thousand dollars, its likely to save you tens of thousands in the long run. They can flag additional costs that you may not be aware of and help you secure a better deal on your home or next investment property.

Why Choose a FNQ Buyer's agent?

At FNQ we understand the real estate market and property buying process like the back of our hands. We know what to look for in a property and how to get the best possible price. We’re also experienced negotiators who can fight for you and get you the best deal possible.

So, if you’re looking to buy a property in FNQ, we can help you to save money, time and stress. Call us today!<>

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