A real estate agent who assists in you finding and purchasing a property is known as a buyers agent. They generally offer a number of services which range beyond finding a property that meets your needs to:
- Appraising the property
- Inspecting the property for you and with you
- Dealing with vendor agents
- Negotiating a sale price
- Bidding at auction
- Arranging property inspections
- Gain access to off market properties
- General property advice
- Benefitting you by only having to deal with one person rather than various agents
Selecting a buyers agent
- Ensure they are a licensed real estate agent including checking their license credentials
- Are they exclusively representing the buyer only in the purchase transaction?
- What experience do they have in search and negotiation?
- What fees are there for the service and what will be charged if they don’t find you a property
- Assess their terms and conditions to see what happens if you are not happy with their performance
- Do they have a large network of agents they work with
- Are they a member of any industry associations
- How often will they be in touch
Rules of conduct according to fair trading NSW
- When signing a buyers agency agreement, the agent is required to prepare and give you a statement of property details, which is signed by the agent.
- The buyer’s agent must declare any conflict of interest in representing you. The agreement must specify:
- details known to the agent of the type of property to be purchased
- details of any special instructions about the property to be purchased eg. requirement for vacant possession.
- The buyer’s agent must keep you informed of each stage of the negotiations of a purchase price
- The buyer’s agent is required to obtain the best possible purchase price for you
- The buyer’s agent is not to exceed the agreed purchase price in negotiations or at auction without your express written authority
- The agent must not accept any payment for referring you to a selling agent
When you find a buyers agent there will be an agency agreement for you to sign. Do not sign the agency agreement before you understand what it means for you in terms of costs and what the agent is committing to do for you. If there is anything you don’t understand, contact Fair Trading or your solicitor.
Commission, fees and expenses
Buyer’s agents may charge a fixed fee or a percentage of the purchase price. You can negotiate this price as it is not set by law.
If you have a dispute with your agent and you are unable to resolve it, you can lodge a complaint with NSW Fair Trading or call 13 32 20.
When you have found your property contact Select Conveyancing to look after all your conveyancing needs to finalise the purchase of your property.