Why Hire A Buyer's Advocate?

mortgage-broker

#1

Firstly, a buyer’s advocate, also known as a buyer’s agent, is a licensed real estate professional engaged by a prospective homebuyer or investor to identify, evaluate and negotiate the purchase of a property on behalf of the buyer. They do not work with any selling agent or real estate agency. A buyer’s advocate will always independently represent the best interests of the buyer in a real estate transaction. It’s very easy to misunderstand the selling agent’s role and which side their representing, especially when they’re being charming and nice in their dealings with a buyer. But, remember the selling agent is always on the side of the seller!

Think about it this way: If you were getting sued, would you engage the same lawyer as the person suing you? Of course not! You need someone who will due diligently fight for your best interests and rights. And, that’s why you need a buyer’s advocate when purchasing a property.

A good buyer’s advocate will always independently represent the best interests of the buyer in an objective, transparent and time saving manner, while at the same time assisting them during every step of the property buying process.

Essentially, the role of an independent buyer’s advocate is to:

  • Find and identify the most suitable and best available properties in the market according to the buyer’s requirements, needs and property goals.
  • Evaluate and shortlist properties for buyer’s consideration and help select which property is the most appropriate based on the buyer’s criteria.
  • Undertake comprehensive property due diligence on the buyer’s selected property highlighting its strengths and weaknesses independently and objectively.
  • Negotiate the lowest possible purchase price with the best terms and conditions on behalf of the buyer.

#2

Hi Zac - Great to see a new face in the community!

Thanks for your comments, I didn’t realize the breadth of a buyer advocates role, they certainly take a lot of the pressure off buying a property. Do you have an approx cost benefit analysis of using a buyers advocate in the search for property - what are my likely costs? and what are my likely gains?


#3

Thanks for your feedback Jacob.

Here are 8 great benefits that a buyer’s advocate that a buyer will get in hiring a buyer’s advocate. They include:

  1. Save you money and a buyer’s advocate gives you more power at the negotiation table.

A buyer’s advocate securing a better deal on the purchase price ultimately comes down to how flexible the price is, and the buyer’s advocates’ ability to negotiate. For private sales where negotiation is involved, an advocate’s ability to ask the right questions coupled with their knowledge of the property’s market value is what’s likely to help the buyer’s advocate secure a better deal than you might yourself.

  1. MAKE YOUR LIFE EASIER AND REDUCE STRESS

When you have a buyer’s advocate, you don’t have to worry about driving neighbourhoods for hours or worrying that you’re missing the house that would be perfect for you. You can spend your time doing the things you enjoy while the search is being handled by someone else who is a professional property expert.

  1. REMOVE OR REDUCE THE EMOTION IN THE TRANSACTION

A buyer’s advocate is removed from the emotion of buying a property so they should be able to look at the situation more realistically and unemotionally. Such detachment is especially beneficial to homebuyers as the homebuyer might be over anxious and be more likely to pay over market.

  1. ALWAYS LOOK AFTER BUYER’S BEST INTERESTS AT ALL TIMES

Your buyer’s advocate has a legal and ethical responsibility to represent your best interests at all times. Some of the duties that your buyer’s advocate has to you, includes:loyalty to you, promoting your best interests, providing objective and unbiased advice,highlighting strengths and weaknesses of selected properties, disclosing known material facts and maintaining confidential information.

  1. SIMPLIFY THE BUYING & SELLING PROCESS FOR THE BUYER

Many people feel frustrated and overwhelmed with the buying and selling process being quite complex, frustrating and time consuming. A Buyer’s advocate will simplify the buying and selling process for you, by navigating and supporting you through every step. Having a buyer’s advocate, in your corner, will also protect you from making the wrong decision, paying too much or being outplayed by your competitors.

  1. SAVE YOU LOTS OF VALUABLE TIME

What’s your time really worth to you?

Having a professional property expert find the right property that meets your requirements, needs and property goals can save you countless hours spent shortlisting efforts and also eliminate a lot stress to you. Your weekends would be freed up to attend inspections and focus only on properties that meet your requirements, criteria and property goals.

Although, there’s an increasing array of tools and sales data supposedly on the internet to help you make an informed choice, the information on the internet is not always accurate and it’s still takes valuable time and can easily become confusing and overwhelming. Obviously, if you can outsource this work it certainly makes logical sense, as time saved equal money saved.

  1. UNDERTAKE COMPREHENSIVE DUE DILIGENCE ON THE BUYERS BEHALF

Undertaking comprehensive due diligence is critical in achieving a successful purchase outcome, as it protects you from making wrong decisions or avoiding costly mistakes. Unfortunately, due diligence is never a straightforward exercise, especially if you decide to do it by yourself.

  1. ALWAYS NEGOTIATE THE VERY BEST PURCHASE OUTCOMES FOR YOU**

Your buyer’s advocate can serve as a liaison between you and pushy selling agents. One of the most popular reasons people use a buyer’s advocate is to support them during the auction and negotiation process. Bidding at auction can be an intimidating, overwhelming, emotionally daunting business. So, having a property expert in your corner who’s providing independent, objective and transparent advice will save you time, money and stress!

As far as costs go fees are negotiable but normally range from 1-2% of the purchase price, depending on the services provided. But, in all my cases, the savings I’ve delivered for my client’s have been 3-5 times more than the fee payable. Hope the above makes sense. Cheers!


#4

Thanks for expanding on that Zac - very valuable knowledge!


#5

Thanks Jacob. Appreciate your time in reading my information.