Why You Might Need a Buyers Agent: The Role and Benefits Explained
Buying a home is one of the most significant decisions in life. In this episode of the Home Buyers Australia Podcast, hosts Damien Walker and Jack Corbett dive deep into the role of a buyers agent, answering the all-important question: do you really need one? Watch the full episode here.
What Exactly Does a Buyers Agent Do?
According to Jack, a buyers agent is essentially the opposite of a real estate agent. While real estate agents work for the seller to get the highest price for a property, buyers agents work on behalf of the buyer to secure the best deal. Their job is to protect your interests by ensuring you’re getting the right property for the best price, and it’s not just about negotiating—there’s much more involved.
As Jack explained, buyers agents bring their 10,000 hours of expertise to the table. They purchase properties day in and day out, while the average person may only buy a home three times in their life. This means they have a clear advantage in spotting the best deals and identifying potential red flags. Whether you’re buying your first home or expanding your property portfolio, having an expert on your side could be a game changer.
How Does the Process Start?
The process begins before you even think about the specific property. Jack emphasised that many people start too late, reaching out to a buyers agent when their pre-approval is about to expire or after they’ve already lost out on a few homes. His advice? Speak to a buyers agent early, even if you’re not ready to purchase yet.
During the first meeting, Jack works with clients to determine their budget, lifestyle needs, and long-term goals. Rather than jumping straight into viewing homes, he stresses the importance of location and lifestyle fit. A great house means nothing if it’s in the wrong area for your commute or your family’s needs.
Matching Your Lifestyle with the Property
Jack encourages buyers to think about their future when making a purchase. “Where do you see yourself in five years?” is a question he asks to ensure that buyers are making a decision that will work long term. He shared a great example of how stretching your budget for that extra bedroom might seem like a tough call now but could save you from moving again down the track, especially if your family grows.
This forward-thinking approach can also prevent costly mistakes down the road. Moving is expensive—stamp duty, agent fees, and marketing costs all add up. Making the right decision upfront, even if it stretches the budget, often results in a better investment long-term.
Buyers Agents Can Speed Up the Process
If you’re frustrated by searching for months without success, a buyers agent can fast-track your home-buying journey. Jack revealed that many clients search for six months on their own, only to engage a buyers agent and find the right property within four weeks.
Damien shared his personal experience using Jack’s services, noting that even as a mortgage broker with years of experience, Jack’s expertise was invaluable. For Damien, the buyers agent helped take away the pain points of the process, offering guidance on everything from identifying red flags to negotiating the final deal.
The Cost of Hiring a Buyers Agent
One of the most common questions people ask is: how much does a buyers agent cost? Jack broke down the different pricing structures, noting that the cost can vary depending on the services provided.
- Auction-Only Bidding: Typically priced between $500 and $700, this service covers just the bidding aspect. It’s particularly useful for those who may get caught up in the emotion of an auction and overbid.
- Negotiation-Only: This service generally costs about 1% of the property price and is designed for buyers who have already found a property but want an expert to handle the negotiation.
- Full-Service Buyers Agent: For buyers who want end-to-end assistance, from finding off-market properties to managing post-sale inspections, the fee usually ranges from 1.5% to 2.2% of the purchase price.
While this may sound like an additional expense, Jack pointed out that a good buyers agent can often save you more than their fee in negotiations. Additionally, the time they save you in searching for a property can offset any price difference, particularly in fast-growing markets.
What to Look for When Choosing a Buyers Agent
Not all buyers agents are created equal, and Jack advises looking for local expertise and experience. A buyers agent should know the area intimately, ideally living within a short drive of the properties they represent. Relationships with real estate agents in the area can also be a major asset, giving buyers agents access to off-market properties or early notice on pre-market listings.
Jack stressed that experience is key—especially when you have one shot at getting the right property. A good buyers agent will not only negotiate the best price but also ensure you don’t overpay for a home or make an emotionally driven decision you’ll regret later.
Off-Market Properties: The Hidden Gems
One of the biggest perks of working with a buyers agent is access to off-market properties. These are homes that aren’t listed on the usual real estate websites. Instead, agents often bring these listings directly to buyers agents, giving their clients first access.
Jack shared that about 50% of the properties his clients buy are off-market. While it’s tempting to focus on these hidden gems, he reminded listeners that a skilled buyers agent can also get great deals on-market through their negotiating prowess.
Investment Buyers Agents vs. Owner-Occupier Buyers Agents
The role of a buyers agent can vary significantly depending on whether you’re looking for a home to live in or an investment property. Investment buyers agents focus purely on numbers and growth potential. As Jack puts it, “there is zero emotion involved.” They might search across multiple states to find the right property and often charge a flat fee.
On the other hand, an owner-occupier buyers agent helps you find a place to live, which involves a much more emotional and personalised process. It’s about lifestyle, comfort, and long-term happiness.
Get in Touch
Ready to take the next step? Contact Corbett Property Buyers for expert guidance in navigating the property market, and reach out to Atelier Wealth for tailored mortgage solutions that suit your financial goals. Your journey to homeownership starts here!
For more tips and insights, tune in to the Home Buyers Australia Podcast on Spotify and Apple Podcasts.
