The process of purchasing a house can be complex and tedious. A buyers agent can make it relatively easy for you to complete the process thanks to their deep understanding of the local real estate market. Their ties to other agents and their negotiating skills are added advantages to helping you secure a good deal on your new abode.
Some of the best Brisbane buyers advocate also understand a property’s true value and have access to properties that are yet to be listed on the market. A buyers agent Brisbane is likely to set you back, though. Let’s look at the costs associated with a buyers agent Brisbane.
What factors determine the costs of a buyers agent Brisbane
A variety of factors are taken into consideration when calculating the fees charged by a buyers agent or a buyers agency Australia. The most prominent factor is the amount of time spent on purchasing your property. The level of service you seek from a buyers agent Brisbane will also affect their fees.
Some investors require a buyers agency in Brisbane to handle all their purchase-related tasks. Whether it is sourcing properties, negotiating with sellers or bidding at auctions, a buyers agent Brisbane can carry out all functions in a professional manner. Affiliated services such as building inspections and pest control will carry their own charges, making it crucial for you to budget accordingly.
Pricing models for buyers agent Brisbane
There are three pricing models based on which a buyers agent will quote a fee structure.
1) Percentage of the property price
Under this pricing model, the buyers agent’s fees will be charged as a percentage of the price you ultimately pay for the property. Most buyers agencies and agents charge between 1% and 3% based on the time they have spent and level of service they have offered. For instance, if the final price of a property is $1 million, the buyers agent Brisbane will charge you between $10,000 and $30,000 as their fees.
There are a couple of drawbacks with this model, however. Firstly, you will have no idea about the fees until negotiations are over. Secondly, since the buyers agent fees are directly related to the price of the property, some buyers agents may not negotiate to the best of their abilities. The reason is the lower the price of the property, the lower their fees.
2) Tiered fixed fee
Under this model, a buyers agent Brisbane will charge a fixed amount as their fees. The amount will depend primarily on the price bracket or the tier under which the property falls. This method carries no surprises and you will have an idea of what you owe right from the start. However, it could work out expensive if the tiers have higher price ranges.
For instance, a property worth $500,000 will set you back $4,000 in agent fees. A property worth between $500,000 and $800,000 is subject to $6,000 in agent fees, and a property worth more than $800,000 will set you back over $10,000.
3) Fixed fee
Under the fixed fee pricing model, your buyers agent Brisbane will request a flat fee for their services. It is not associated with the property’s purchase price, and varies from home to home. For instance, a few thousand dollars will help you hire the services of a buyers agency Australia. However, you may have to shell out tens of thousands of dollars if you’re looking to purchase a luxury home in Brisbane.
Under the fixed fee model, some agents request you to pay the amount in instalments when they commence their work. A percentage of the fee can be paid upon the completion of negotiations. It is important to note that fixed fees can be quite pricey, especially if you are purchasing an affordable home. Either way, you will be aware of the exact amount you owe the agent from the time you hire them.
Why hire a buyers agent Brisbane?
Buyers agents have the experience and expertise required to get you a good deal on your dream house. Their knowledge of local property markets and their contacts in the real estate industry have the potential to save you a lot of time and money. They can also identify properties that have a high growth potential and estimate their true value so you don’t end up paying over the board. What’s more? They also handle all the tiresome paperwork associated with the purchase of a property.
Before you hire a buyers agent Brisbane, however, make sure you thoroughly understand their fees and charges to avoid potential conflicts.