The greatest problem when buying a property lies in the fact that you never know the exact worth. Sure, the price of houses in the area goes at a certain price range and you can use this as a starting point in order to set your price against theirs, yet, this is not the most reliable of methods. Think about it, the circumstances may change, the real estate market may crumble and the home you intend to sell may fit the personal needs of the client so much that they’re willing to go far above the real price. After all, there’s no such thing as “the real price”, seeing as how things are only worth as much as people are willing to pay for them. This is why you need a buyer’s agent.
1. What are buyer’s agents
People without much experience may look for properties online and, by analyzing a sample that’s large enough, make a presumption about how much a certain home is worth. Unfortunately, this method is all but reliable and there are licensed professionals who can offer you a counsel on the value of a certain property – the buyer’s agents. After all, if sellers have agents, wouldn’t it be logical for buyers to have them, as well. One common misconception about them is that they sell real estate when this is exactly the opposite of what they do.
Most importantly, they usually don’t work for a fixed fee but set their price at about 1 or 2 percent of the total value of the purchase. For some of the most expensive properties, this can be an incredibly high figure, yet, most people find that they still save money by hiring buyer’s agents. Here are several ways in which this works.
2. More negotiating power
One crucial factor to bear in mind is that buyer’s agents primarily excel in negotiations, employing two distinct strategies. Indirectly, they conduct thorough research, shedding light on the property’s true value and its potential upper limit. This insight equips you with the ability to decipher the other party’s intentions, a formidable advantage in any negotiation. Moreover, licensed buyer’s agents often take on the role of direct negotiators, and they may even represent you at auctions. Naturally, the price thresholds are always prearranged with their clients, but auctions can be highly charged affairs. At times, individuals may lack the fortitude to persist until the final moments or the prudence to cease at the right juncture.
Sometimes, people don’t have the nerve to go until the very end or the restraint to stop in time. This is why sending veterans like people from Aus Property Professionals may be a more reliable choice.
3. Understanding your set of circumstances
In the opening, we touched upon the possibility of discovering a property so perfectly aligned with your desires that you might be tempted to exceed your budget. This is where the expertise of a local buyers agent becomes invaluable. They possess a unique vantage point, comprehending your requirements while maintaining an objective perspective on your circumstances. As impartial observers, they can offer an informed assessment of the likelihood of finding an equally suitable home at a similar or even lower cost. In such a scenario, their assistance isn’t just about saving you a fraction of your expenses; it’s about safeguarding a substantial sum. At times, individuals are willing to overpay by as much as $100,000 for a property priced at $700,000, even when it’s unnecessary. In these situations, professional guidance can result in savings of tens of thousands of dollars, easily offsetting any commission earned by the agent in the process.
4. Recommending other professionals
When buying a property, you’ll need to get in touch with various people, ranging from attorneys, home inspectors, lenders, movers and even contractors, should you need to do some extra move on the home, before you move in. A seasoned buyer’s agent has a network of contacts that includes all of these people. Therefore, by hiring a buyer’s agent, you get a great word of mouth recommendation for every single expert you start working with. Moreover, you get to save the money on the fact that you don’t have to hire them via a third party.
5. Saving time
Earlier on, we mentioned the potential inefficiency of you doing a research on your own. Well, this is not the only problem that you’re bound to encounter, seeing as how you also need to commit a lot of your free time to this research, even do some in-person tours of properties that are far away. A buyer’s agent, on the other hand, does most of this in your stead, which means that you’ll only get a skillfully drafted rundown of most important factors.
Conclusion
As you can see, buyer’s agents are both convenient and affordable and the only obstacle that people have when it comes to hiring them is the fact that, in theory, you can make this purchase without them. This, on the other hand, should never be your go-to strategy, seeing as how experience and knowledge are nearly impossible to quantify and put on paper.