Parker Investment Properties

What is a Buyer's Advocate?

Buyer’s advocates (or buyer's agents) are licensed professionals who specialise in buying property on behalf of buyers. They can buy investment properties or new homes for their clients. The key difference between a buyer's advocate and a “selling agent”, is who they represent.

A buyer's advocate works exclusively for the buyer. Their sole purpose is guiding the buyer though the process of purchasing property. They help the buyer to avoid pitfalls and provide unbiased advice and assessment of properties. By law, an agent cannot act for both parties in the transaction so a buyer's advocate is 100% on your side.

What does a Buyer's Advocate do?

Most buyer's advocates offer two levels of service:

The full search service, whereby the buyer's advocate actively searches the market and shortlists properties meeting the specific criteria of the client, evaluates and negotiates terms & price on behalf of the buyer.
The negotiation or auction bidding only service - this is where the client finds the property and engages the buyer's agent to evaluate and negotiate the sale or bid at auction

Why should I use a Buyer's Advocate?

The use of buyer's advocates is becoming more common as investors and home buyers understand the benefits provided. A professional buyer's advocate will:

Save you time and money
Provide you with the knowledge and data you need to make informed decisions
Provide clarity about the true value of property
Give you the upper hand by understanding the auction process and various bidding tactics
Lead you through the process with confidence and certainty, ensuring a smooth and timely transaction

What does it cost?

No matter your budget, buyer's advocates can save you money, time and stress.

Fees are normally charged based on a percentage (1-3%) of the property value or may be a flat fee. An engagement fee is usually paid upfront to secure the buyer's advocate's services..

In Victoria, you can expect a professional buyer's advocate to charge a minimum of $7,700 for a full search service.

In most cases, buyer's advocates will save you the equivalent to their fee and also provide further benefits. For investors, buyer's advocates fees are tax deductible.

What else should I know?

It's important to identify if your buyer's advocate is truly “exclusive” and “independent”. Many will say "yes" to this question, but if they accept sales commissions from vendors or developers then they cannot be classified as “independent”. If they receive money from anyone else involved in the transaction, they are acting in the interests of someone other than you.

The bottom line is that if you are not paying for advice, it is unlikely to be independent and is not going to be in your best interest.

Here are 7 key reasons why you should use a buyers’ advocate:

Gain access to a wider choice of properties (many not advertised) via the buyer's advocate's contacts and network
Leverage your time - instead of searching the newspapers and internet every weekend, get someone else to do the hard work of shortlisting suitable properties
As professional negotiators, buyer's advocates will obtain the lowest possible price
Eliminate the stress and frustration of being shown unsuitable properties by selling agents who don't listen to buyers' needs
Have an independent professional buyer's agent working on your side
Source the right type of property in locations with good prospects for capital growth
Grow your property protfolio faster by purchasing in growth areas

If you choose a licensed, professional buyer's advocate, the saving you make on your property could run into tens or hundreds of thousands of dollars, will be less stressful and is likely to take up little to none of your own time.

If you are interested in using a buyer's advocate for your next purchase you can take a look at our services here.