Real estate agents are the first line of communication in the home buying process. Whether you’re looking for an investment or buying to live in, you will interact with plenty of agents. However, it’s important to understand that real estate agents are not always working for you.
In this article, we’ll help you understand why real estate agents might not always align with your interests and introduce you to the concept of a buyer’s agent.
What exactly is the deal with real estate agents?
Real estate agents tend to work for the seller. They may appear charming and eager to help you find your dream home, but their primary goal is to sell the property for as much as possible. This can create a conflict of interest, as your goal is to find a reasonably priced home.
While agents are valuable allies when selling your own home, leveraging their expertise in preparing and promoting properties to foster competition, their focus during your purchase is on securing the highest price for the seller.
It’s also important to note that agents typically do not earn money from property marketing expenses such as advertising, styling, or photography. They are paid a commission or fee only when the property is sold and settled. As a buyer, this means you may face challenges in negotiating a lower price on a desirable property.
Who’s on your side as a buyer?
Enter the buyer’s agent! If you want someone who works on your behalf to find and negotiate a property, a buyer’s agent or buyer’s advocate is your best option. These professionals work for you, helping you locate the right property, negotiating with real estate agents, and representing you at auctions. They should be independent, licensed, and able to provide referrals from previous clients with similar needs.
Buyer’s agents are particularly beneficial for first-time home buyers. They offer guidance, remain calm during high-pressure situations like auctions, and help navigate the complexities of the buying process.
Anything else to look out for?
Real estate agents are governed by strict regulations through several legislative acts. For more information about these regulations and your rights, visit the ACCC or the Business Licensing Authority. Additionally, Consumer Affairs Victoria’s Real Estate: A Guide for Buyers and Sellers offers valuable insights and guidance on navigating the real estate market, ensuring you are well-informed throughout the process. If you suspect any issues or unethical practices, it’s important to know your rights as a buyer or seller.
Contact BankVic to chat about home loans by calling us on 13 63 73.
Information in this article is general in nature and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you before acquiring a product or service. Police Financial Services Limited ABN 33 087 651 661 - trading as BankVic | AFSL and Australian Credit License 240293.
